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Most dealers will not accept large cash payments because of the legal reporting requirements of such payments, not because they'd rather loan you the money. Few

Most dealers will not accept large cash payments because of the legal reporting requirements of such payments, not because they'd rather loan you the money. Few dealerships will accept cash in amounts that trigger IRS reporting, for example, because it's a red flag for money laundering and the drug business.

Broken_Hippo 5y ago
I know that requirement exists, but I'm not convinced that is the reason. They'd be dealing with a bank, after all, who knows the restrictions but more importantly, I'm guessing the cost of the cars is as much and they likely aren't taking a loan for the cars. There are lots full of cars under that limit that only sold with financing, and the dealers just simply said that they don't take cash. (the limit used to be 10k, and had not been raised to keep up with inflation, but I don't know if it ever became raised) Additionally: The reporting requirements weren't so bad. Another couple of dealers didn't have an issue with it. Obviously, they bought the car from one of those folks.
tmm84 5y ago
Another reason cash isn't accepted is usually the money can come from non auto based loans (student loans, home loans, etc.). Loan service companies can't repo a vehicle in these circumstances because it was never collateral in the first place and if the person taking out the loan signs over the car then it can't be part of assets that can be sold to recoup losses. So dealerships have a good reason to refuse cash when loan service companies are the ones that give them kickbacks.
- dtagames 5y ago
  I'm sorry, but none of that makes sense. No one can repo a vehicle unless he has title and anyone with title can repo a vehicle regardless of where the money came from. No student lender has title to a financed vehicle, even if the student used his loaned cash as part of the downpayment. Title to financed vehicles is held by the lender until the loan is satisfied in full. No buyer can "sign over a car" to someone without that title, for it is the title document itself which must be "signed over" in order to transfer ownership. And no dealerships receive "kickbacks" of any kind. There are plenty of hidden and confusing ways that car dealers make money, but kickbacks from lenders or anyone else are not part of it.

Broken_Hippo 5y ago

I know that requirement exists, but I'm not convinced that is the reason. They'd be dealing with a bank, after all, who knows the restrictions but more importantly, I'm guessing the cost of the cars is as much and they likely aren't taking a loan for the cars. There are lots full of cars under that limit that only sold with financing, and the dealers just simply said that they don't take cash. (the limit used to be 10k, and had not been raised to keep up with inflation, but I don't know if it ever became raised) Additionally: The reporting requirements weren't so bad. Another couple of dealers didn't have an issue with it. Obviously, they bought the car from one of those folks.

tmm84 5y ago

Another reason cash isn't accepted is usually the money can come from non auto based loans (student loans, home loans, etc.). Loan service companies can't repo a vehicle in these circumstances because it was never collateral in the first place and if the person taking out the loan signs over the car then it can't be part of assets that can be sold to recoup losses. So dealerships have a good reason to refuse cash when loan service companies are the ones that give them kickbacks.

dtagames 5y ago
I'm sorry, but none of that makes sense. No one can repo a vehicle unless he has title and anyone with title can repo a vehicle regardless of where the money came from. No student lender has title to a financed vehicle, even if the student used his loaned cash as part of the downpayment. Title to financed vehicles is held by the lender until the loan is satisfied in full. No buyer can "sign over a car" to someone without that title, for it is the title document itself which must be "signed over" in order to transfer ownership. And no dealerships receive "kickbacks" of any kind. There are plenty of hidden and confusing ways that car dealers make money, but kickbacks from lenders or anyone else are not part of it.