Is cash just cash?

Lorddrakul

Sorry for the naiveté here, but I've never done a large cash deal for a car before: does a bank draft count as cash?

Looking at dropping 15k plus a car but don't fancy carrying that much wedge.

As far as a dealer is concerned, is a bank draft effectively cash?

Does actual cash make the difference?

If I were looking to bargain maybe 500 yoyos off the price, does a stack of notes get me further than a draft for the full amount?

Would it be better to have a draft for most of it and then have a couple of grand in notes for bargaining?

Cheers

LD

dast1g

Negotiate price before you tell them how you are paying. It actually costs more to lodge cash into the bank as a business, than it does drafts.

Source: Family sells cars

Lorddrakul

dast1g wrote: »

Negotiate price before you tell them how you are paying. It actually costs more to lodge cash into the bank as a business, than it does drafts.

Source: Family sells cars

Thanks for that mate. As I said, I am utterly clueless in this area as I've never spent this much on a car before.

So, just purely hypothetically speaking, if a car was priced at say €15,449 and I offered a bank draft for €15,000 would that be a more attractive prospect to a dealer in January to €15,000 in cash?


LD

dast1g

Lorddrakul wrote: »

Thanks for that mate. As I said, I am utterly clueless in this area as I've never spent this much on a car before.

So, just purely hypothetically speaking, if a car was priced at say €15,449 and I offered a bank draft for €15,000 would that be a more attractive prospect to a dealer in January to €15,000 in cash?


LD

No worries. I bought a scirocco in July last year. Got 2,000€ off and then told them im paying by draft. Car was originally 18k and i got it for 16k .They don't mind as you said , a draft is guaranteed funds. If your looking at car that price hit them low and see where they meet you.

Second hand cars usually have big profit margins. So garages generally have a bit of lee way (or however you spell it :P )

Victor

It will depend on the business. Some businesses won't like having that much cash on the premises.

When selling cars, "cash" usually means "not credit" and "not a trade-in". Even "0% interest" deals or credit cards cost money.

Bank drafts have their problems, especially with private deals. Not so such if ordering a car for delivery in two months.

Bank transfer is probably best, although mention it to your bank beforehand.

Lorddrakul

@Victor: Thanks for that.

Having no frame of reference, I wasn't sure about how to even introduce it to the conversation.

Fortunately, I am not in the trade in situation so at least don't have to deal with that.

LD

Del2005

Lorddrakul wrote: »

Thanks for that mate. As I said, I am utterly clueless in this area as I've never spent this much on a car before.

So, just purely hypothetically speaking, if a car was priced at say €15,449 and I offered a bank draft for €15,000 would that be a more attractive prospect to a dealer in January to €15,000 in cash?


LD

You do the deal before you get the draft, all based on cash deal. It costs money to buy a draft so getting it made out before you agree to buy the car will not be a good idea. If you really want a car walking in with the cash might get you a good deal, but the garage might not want €15k sitting on site so could tell you to come back with a draft or just straight transfer.

For a sub €5k car cash would be king, but above that a more secure method is better for everyone.

Lorddrakul

Thanks all, I think small cash deposit and bank transfer for balance sounds the best in terms of convenience and flexibility.

Cheers,

LD

Atlantic Dawn

If you bring over €15k in cash the dealer will legally have to report you to Revenue and the Gardaí as part of money laundering legislation whether you innocently took it out of your bank that morning or got it as part of a drugs payment it doesn't matter.

"Cash" in ads means nothing to trade in, most dealers would prefer a cash deposit with the remainder in draft.

Victor

Atlantic Dawn wrote: »

"Cash" in ads means nothing to trade in, most dealers would prefer a cash deposit with the remainder in draft.

Forgot about that. Post edited.

bazz26

When it comes to the motor trade, cash is referred to as the straight purchase price where you have no old car to part exchange. It does not refer to the method of payment.

cnoc

Atlantic Dawn wrote: »

If you bring over €15k in cash the dealer will legally have to report you to Revenue and the Gardaí as part of money laundering legislation whether you innocently took it out of your bank that morning or got it as part of a drugs payment it doesn't matter.

"Cash" in ads means nothing to trade in, most dealers would prefer a cash deposit with the remainder in draft.

What is the maximum amount one can pay in hard cash to a dealer (motor) without him'her not having to inform the Revenue and Gardaí?

Victor

cnoc wrote: »

What is the maximum amount one can pay in hard cash to a dealer (motor) without him'her not having to inform the Revenue and Gardaí?

There is no fixed amount, as it is only part of the risk profile. Anything over €10,000 in bank notes is likely to be reported. Someone from out of town with a vague address, no phone number, etc. it would be much lower.

Atlantic Dawn

cnoc wrote: »

What is the maximum amount one can pay in hard cash to a dealer (motor) without him'her not having to inform the Revenue and Gardaí?

€14,999 but I think if they suspect the money is dodge they can report it too but it's not mandatory only if they feel it's suspicious.

www.amlcu.gov.ie/en/AML/Pages/Businesses%20that%20accept%20cash%20payments%20of%2015000%20or%20more%20for%20goods

Lorddrakul

Thanks all, that's good to know.

TBH, I'm pretty comfortable with the combination of Visa Debit for a deposit and bank transfer for the rest. It means that there is good traceability on both sides.

One forgets that there are easier ways of doing things than cash these days, especially when talking about relatively large amounts.

That said, I've bought cars and bikes before on a Celtic Tiger era credit card with a high limit

Good purchase insurance, don't ya know.

LD

bmwguy

Bring a draft for 14k and cash for negotiations. Hand over draft plus wave 500 (or 100, or 700, whatever) cash to seal the deal, see how you get on. That's assuming there is still negotiations to be done. Can't negotianegotiate below 15k if the draft is 15k (unless they write you a cheque or give you cash back, unlikely and needless)

pkvader

Sorry for hijacking, ive €11500 'cash' to spend on a 2nd hand car from a dealer, im looking at cars in the €12500 bracket online at the moment,what are the chances of me negotiating off €1000 off the asking price? How should I approach it?, offer €11000 and go from there? .

bazz26

It depends how well priced the car is against similar models being sold by other dealers. If it's one of the cheapest of it's type then it may prove more difficult to get more off it. Best do some research on prices of similar cars first and then make what you think is a good offer for it. If you have a max price you can spend in your head then your opening offer needs to be below that to allow for movement.

pkvader

bazz26 wrote: »

It depends how well priced the car is against similar models being sold by other dealers. If it's one of the cheapest of it's type then it may prove more difficult to get more off it. Best do some research on prices of similar cars first and then make what you think is a good offer for it. If you have a max price you can spend in your head then your opening offer needs to be below that to allow for movement.

Cheers for the advice