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Car dealerships often given huge discounts for cash purchases. So purchasing a car with cash is actually more likely than you give credit for. As for getting o

Car dealerships often given huge discounts for cash purchases. So purchasing a car with cash is actually more likely than you give credit for. As for getting out $10,000 you'd usually need to go into a teller with at least a couple of days notice to withdraw that kind of cash. It's easy to do, if not exactly the most convenient. Getting money out of a bank isn't restricted to ATMs or debit card use. It's your money, the bank is just borrowing it from you to increase their spending power to increase their own profits and charging you for the benefit. It's a total coup: When you put money in your account, you're paying them for the privilege of lending them your money to so they can make further profits. You're still entitled to it back when you want it, in whatever forms the bank are capable of providing, up to and including cash.

scrooched_moose 8y ago
Isn't paying "cash" for a car a just shorthand for "money up front, no credit cards or loans"? I don't personally know anyone who's taken $20,000 cash into a dealer for a car, they all pay by check which is still allowed: > It means transactions over $10,000 will have to be made through an electronic payment system or cheque when purchasing goods or services.
- tripletao 8y ago
  In the USA, it's uncommon but not unheard of--people who don't have bank accounts, don't like paying taxes, don't want to pay their bank a fee for a cashier's check or wire, etc. It probably still gets reported to the government, though. https://www.irs.gov/businesses/small-businesses-self-employed/report-of-cash-payments-over-10000-received-in-a-trade-or-business-motor-vehicle-dealership-qas https://www.irs.gov/businesses/small-businesses-self-employe... Pro tip: In a private transaction, do as much of the work as possible in the bank lobby. I sold a car, and the cash never left the bank--both I and the buyer had accounts at the same bank, so he withdrew and I deposited. The cash was just the cheapest way for us to do the transfer given the bank's fee structure. The physical handoff also synchronizes well with the physical handoff of the title/keys.
chrismorgan 8y ago
I believe the discount you speak of for paying cash is for paying up-front rather than deferring payment. I did actually go to the bank and withdrew the ~$14,000 for my car, purchased second hand at a brand dealership (it had been traded in for a new car). It was quite an enjoyable experience, and very interesting how the bank measured bundles of ten $100 notes out by weight, with a rubber band of evidently consistent weight around each bundle. The man that handled finance at the dealership sighed, rolled his eyes and started counting. He said he only had someone pay in cash once every few months, if that, and normally for smaller amounts.
0xffff2 8y ago
In addition to what others have said about "cash" not being literal in the context of car buying, I don't even think your statement is true. I've purchased several cars over the last few years, and every dealer I've worked with has offered me a discount if I financed the vehicle through them, because they get a kickback on the financing deal as long as you don't pay off the loan within a few months.
pjc50 8y ago
Lots of places give big discounts for paying in cash .. so they can evade the value added tax, and potentially hand the cash directly to employees evading tax there. (I don't actually mind this much for small amounts for small businesses, but it does add up!)
- seem_2211 8y ago
  Which is a big reason that this is something the Australian government wants to clamp down on?
- metaphor 8y ago
  > value added tax Bit of an oxymoron, but point well taken. There exists a legit and conditionally significant operational risk to not being paid in a timely manner. Waiting 30+ calendar days is commonplace in private business-to-business transactions...problem enough that US Federal law explicitly requires government agencies to include interest[1] on contractor payments made after 30 calendar days of proper invoice. Furthermore, if clearing time measured in days wasn't enough, the bank may even place a hold on a appreciable percentage for weeks without prior notice, and there's nothing you can do but wait it out; anecdotally, it's happened to me on at least one recent occasion with a large check issued by the Department of Treasury. [1] https://www.fiscal.treasury.gov/fsservices/gov/pmt/promptPayment/rates.htm https://www.fiscal.treasury.gov/fsservices/gov/pmt/promptPay...
  - pjc50 8y ago
    Late payment of invoices is a real problem for small businesses, yes. But the real distinction is upfront/arrears, not how it's settled! Someone can fail to pay an invoice in cash just as well as they can fail to pay it by cheque. (I do think governments should try to heavily discourage long arrears and move to e.g. 7 days being the norm; invoices are a form of unsecured credit that can cause ripple collapses like any other form of credit.)
jacquesm 8y ago
> It's your money, the bank is just borrowing it from you to increase their spending power to increase their own profits and charging you for the benefit. That's a common misconception, but it really isn't true. The moment you hand it over for deposit it is their money.

scrooched_moose 8y ago

Isn't paying "cash" for a car a just shorthand for "money up front, no credit cards or loans"? I don't personally know anyone who's taken $20,000 cash into a dealer for a car, they all pay by check which is still allowed: > It means transactions over $10,000 will have to be made through an electronic payment system or cheque when purchasing goods or services.

tripletao 8y ago
In the USA, it's uncommon but not unheard of--people who don't have bank accounts, don't like paying taxes, don't want to pay their bank a fee for a cashier's check or wire, etc. It probably still gets reported to the government, though. https://www.irs.gov/businesses/small-businesses-self-employed/report-of-cash-payments-over-10000-received-in-a-trade-or-business-motor-vehicle-dealership-qas https://www.irs.gov/businesses/small-businesses-self-employe... Pro tip: In a private transaction, do as much of the work as possible in the bank lobby. I sold a car, and the cash never left the bank--both I and the buyer had accounts at the same bank, so he withdrew and I deposited. The cash was just the cheapest way for us to do the transfer given the bank's fee structure. The physical handoff also synchronizes well with the physical handoff of the title/keys.

chrismorgan 8y ago

I believe the discount you speak of for paying cash is for paying up-front rather than deferring payment. I did actually go to the bank and withdrew the ~$14,000 for my car, purchased second hand at a brand dealership (it had been traded in for a new car). It was quite an enjoyable experience, and very interesting how the bank measured bundles of ten $100 notes out by weight, with a rubber band of evidently consistent weight around each bundle. The man that handled finance at the dealership sighed, rolled his eyes and started counting. He said he only had someone pay in cash once every few months, if that, and normally for smaller amounts.

0xffff2 8y ago

In addition to what others have said about "cash" not being literal in the context of car buying, I don't even think your statement is true. I've purchased several cars over the last few years, and every dealer I've worked with has offered me a discount if I financed the vehicle through them, because they get a kickback on the financing deal as long as you don't pay off the loan within a few months.

pjc50 8y ago

Lots of places give big discounts for paying in cash .. so they can evade the value added tax, and potentially hand the cash directly to employees evading tax there. (I don't actually mind this much for small amounts for small businesses, but it does add up!)

seem_2211 8y ago
Which is a big reason that this is something the Australian government wants to clamp down on?
metaphor 8y ago
> value added tax Bit of an oxymoron, but point well taken. There exists a legit and conditionally significant operational risk to not being paid in a timely manner. Waiting 30+ calendar days is commonplace in private business-to-business transactions...problem enough that US Federal law explicitly requires government agencies to include interest[1] on contractor payments made after 30 calendar days of proper invoice. Furthermore, if clearing time measured in days wasn't enough, the bank may even place a hold on a appreciable percentage for weeks without prior notice, and there's nothing you can do but wait it out; anecdotally, it's happened to me on at least one recent occasion with a large check issued by the Department of Treasury. [1] https://www.fiscal.treasury.gov/fsservices/gov/pmt/promptPayment/rates.htm https://www.fiscal.treasury.gov/fsservices/gov/pmt/promptPay...
- pjc50 8y ago
  Late payment of invoices is a real problem for small businesses, yes. But the real distinction is upfront/arrears, not how it's settled! Someone can fail to pay an invoice in cash just as well as they can fail to pay it by cheque. (I do think governments should try to heavily discourage long arrears and move to e.g. 7 days being the norm; invoices are a form of unsecured credit that can cause ripple collapses like any other form of credit.)

jacquesm 8y ago

> It's your money, the bank is just borrowing it from you to increase their spending power to increase their own profits and charging you for the benefit. That's a common misconception, but it really isn't true. The moment you hand it over for deposit it is their money.