Buying new car cash: Dealer wants a credit check/financing application?

[LS1Coupe]

I bought my GT with a bank check. The dealership said they didn't want me carrying that much cash and wanted to count it even less.

I put down $20K on my wife's GT at the Ford Dealer. It took their cash machine 45 minutes to count it all as it kept getting jammed. You could tell the guy wasn't exactly pleased and that they rarely use that machine.

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[lugbolt]

I don t know if it s still true or in what states but I remember if you bought cash the IRS gets notified too. just part of the rules.

Federal. They make you fill out some paperwork if the cash amount is over $10,000. Form 8300.

Cash has a definition too, and some types of payments are not legally considered "cash", thus avoiding the paperwork.

cash does not include personal checks written in the name of the person who holds the account. It also does not include A cashier's check, bank draft, traveler's check or money order.

Kind of complicated. But don't show up with $9999 and tell em you'll be back tomorrow with the rest. That's called "structuring" which is punishable by prison time. There is a one-year timeframe.

I've been through this but it wasn't me that was accused of "structuring". Nonetheless, myself and about a dozen other folks were subject to armed agents holding us up like we were all gangsta's. Something I'll never (ever) forget, and I'll also not bypass the opportunity to tell people about how crooked the IRS can be.

It's an antiquated set of regulations that are constantly being expanded upon, originally designed to thwart the drug trade. Nowadays almost every dealership has to fill out the forms on a daily basis. It's a pain in the backside, and another stress producer especially if you only did $9900 of sales in a day. That's what happened to the place I was at. But the bank is the one who can (and did) blow the whistle.

 

[oguruma]

Well, if it weren't a brand new car I'd certainly be concerned.

I put down $20K on my wife's GT at the Ford Dealer. It took their cash machine 45 minutes to count it all as it kept getting jammed. You could tell the guy wasn't exactly pleased and that they rarely use that machine.

$20K isn't that much money. Is the dealer not capable of counting to ten 20 times?

Although I suppose some cash machines also check for counterfeits as well.

 

[Oakley]

But what's stopping the dealer from saying "Oh, we see that you're not financing the car through us, we've decide not to sell it to you?"

the deal in writing.

 

[Oakley]

Federal. They make you fill out some paperwork if the cash amount is over $10,000. Form 8300.

Cash has a definition too, and some types of payments are not legally considered "cash", thus avoiding the paperwork.

cash does not include personal checks written in the name of the person who holds the account. It also does not include A cashier's check, bank draft, traveler's check or money order.

Kind of complicated. But don't show up with $9999 and tell em you'll be back tomorrow with the rest. That's called "structuring" which is punishable by prison time. There is a one-year timeframe.

I've been through this but it wasn't me that was accused of "structuring". Nonetheless, myself and about a dozen other folks were subject to armed agents holding us up like we were all gangsta's. Something I'll never (ever) forget, and I'll also not bypass the opportunity to tell people about how crooked the IRS can be.

It's an antiquated set of regulations that are constantly being expanded upon, originally designed to thwart the drug trade. Nowadays almost every dealership has to fill out the forms on a daily basis. It's a pain in the backside, and another stress producer especially if you only did $9900 of sales in a day. That's what happened to the place I was at. But the bank is the one who can (and did) blow the whistle.

bullshit. i paid over 10K twice and didn't have to fill anything out.

 

[Skye]

I haven't purchased many vehicles, but for all the ones I have bought, I simply had to identify myself with a Drivers License and wait for the check to clear. They were simple, straight sales.

Complication wastes time and money on both ends. Move on and find another dealer to work with.

 

[Oakley]

Yes, i traded in a car (2016) and bought new stang 2021... This was in 2021. Yes i paid several thousand under MSRP.. But it was also during covid.. Dealers were desperate for used cars and wanted to sell new ones.. We had upper hand.
Anthony

they made the money on the trade.

 

[XFactor7889]

bullshit. i paid over 10K twice and didn't have to fill anything out.

It's legit. I worked at a bank in college. We had all sorts of training on it. While you may not have completed any paperwork, the place you conducted business with likely took care of it on their own. They're responsible for reporting it, not you.

 

[Johnny Rockit]

bullshit. i paid over 10K twice and didn't have to fill anything out.

You might not know there has been a SAR in your name but the powers that be certainly do. It is punishable by time in the Fed lockup but then again without naming namesa certain family has had over 150 SAR and the banks/feds covers for them. You and me would find a pmita cell after just a few.
I transfer thousands weekly or monthly between banks just to do it. My wife said it is not the brightest idea I have had. She was on the board of a smallish bank and I almost had to sleep on the couch with the damn dog.

 

[dnstommy]

No need to take the hard credit hit. Tell them to hit the bricks.

 

[Aks550]

I'm negotiating the purchase of a new 2023 GT. The dealer is in a neighboring state.

I told the dealer I'd be paying cash. He said he'd need to do a financing application. I asked why I'd need to do one if I am paying the entire price of the vehicle with cash.

His response was that he needed one to "prove that I'm the one spending the money." This sounds like BS to me....

How the hell would a financing application prove that "I'm the one spending the money"? Wouldn't the check from me be proof of that?

Is this just a ploy to talk to me into f&cking me with some dealer financing?

That stealership is full of it. Unless you are financing, u don't have to do credit application. They are trying to lock you in. State or federal issued id should be sufficient!

Be prepare to walk away deal if something smell like rat!

One more thing no no to cash, cashier check or money order. Wire transfer is the best. Directly into stealership commerical account.

 

[XFactor7889]

You might not know there has been a SAR in your name but the powers that be certainly do. It is punishable by time in the Fed lockup but then again without naming namesa certain family has had over 150 SAR and the banks/feds covers for them. You and me would find a pmita cell after just a few.
I transfer thousands weekly or monthly between banks just to do it. My wife said it is not the brightest idea I have had. She was on the board of a smallish bank and I almost had to sleep on the couch with the damn dog.

For what it's worth, simply having the alert and the need to report large cash transactions isn't indicating that you or anyone else has done anything wrong. It's just a method to keep record of the flow of cash to ensure no money laundering is taking place.

 

[rxryanm]

The askcarsales subreddit says you have to at least run a name/address check thru due to OFAC (Office of Foreign Assets Control) and is generally a soft check. Money laundering reasons. First comment here explains it much better than I can.

Edit: I didn't read this thread as a whole cuz I'm sure it's a bunch of repetitive theories on how the dealership is going to scam you.

 

[Oakley]

You might not know there has been a SAR in your name but the powers that be certainly do. It is punishable by time in the Fed lockup but then again without naming namesa certain family has had over 150 SAR and the banks/feds covers for them. You and me would find a pmita cell after just a few.
I transfer thousands weekly or monthly between banks just to do it. My wife said it is not the brightest idea I have had. She was on the board of a smallish bank and I almost had to sleep on the couch with the damn dog.

wouldn't be the first list i'm on but seeing as how that was in 2016 and the latest came straight from my bank account i'm feelin pretty good about it.

 

[XFactor7889]

wouldn't be the first list i'm on but seeing as how that was in 2016 and the latest came straight from my bank account i'm feelin pretty good about it.

There's nothing to worry about with the reporting at all. It's really just to create a paper trail to keep an eye out for anything illegal. As long as your money can all be accounted for, the business/bank filing the report will be the only thing that ever comes of it.

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