Cash Sale vs Other

[duanesterrr]

As a buyer, I have a quick question for you guys that have sold a lot of cars in your day.  What % off do you feel a stack of 100 dollar bills gets a buyer?  I realize every sale is different and every seller has a different situation. 

Just for an example, a car that costs 40k the seller may come down to 37.5 if the buyer has to finance.  If the buyer shows up with 35k in 100's it is sold on the spot.

[4cruzin]

The seller still gets all the money regardless if it is cash or financed?   

[Mopar Nut]

No matter what form of payment, I'll ask for a holding fee.

[Daytona R/T SE]

As a buyer, I have a quick question for you guys that have sold a lot of cars in your day.  What % off do you feel a stack of 100 dollar bills gets a buyer? 

Zero.

Zip.

Nada.

[69charger2002]

I definitely give some off for cash in hand. And try to use the same tactic when buying. I have had people show up with a deposit, then either their financing does not go through, or they change their mind and you have to start all over again; usually it's a few days later and other potential buyers may have moved on or found another vehicle by then. Very frustrating. Cash in hand rules, that means no changing their mind, a deal can happen right there. I think your example of $40k asking, $37.5 for a normal deal, and $35k cash is about spot on. On the flip side, i ALWAYS bring cash when buying a charger or an old car. CHances are cash is king on a classic car and here's why. The owner has most likely taken this car to shows and heard over and over that people want to buy his car. He has always told them no or listened to their silly offers, and you get hard hearted about it. When i show up, I make a fair offer, not a ridiculous lowball, but fair. I do not show them the cash, but tell them it's on me and the car can leave right this minute with a signed title. 9 times out of 10, it works. I am positive if i showed up with a cashier's check, or personal check, the results would not be the same most of the time. SOOOO yes cash in hand makes a difference, without a doubt.

[Cooter]

Imo, if you come down, nine times outta ten, you either were asking a percentage over what you actually wanted so as to as to be giving a deal (smart way)...
However, many times it can show a certain level of selling desperation to lower price too much even if it's cash.

[twodko]

Call me paranoid BUT....

Yes we are dealing with high dollar cars and people, for the most part, who know are decent

honest folks and know what's what. Buying from a classic car dealer is always sketchy IMO.

It's one thing to bring 10 large in cash to a prospective buy. It's another thing to bring 40 large

in cash. Both amounts of money are certainly a chunk of money.

I have done the small cash buys alone but when bringing large money like 40k+

I'd bring a large buddy with me. Legal open carry/CCW is not out of the question either IMO.

I've seen it done and the seller was understanding and cool with it. Of course in live in the PRK too.

Anything larger than 50k should be an "at the bank" transaction. Getting a signed receipt from the seller for

the deposit, even if you're rolling to the bank right the, is prudent as well. Just sayin'...

[Mytur Binsdirti]

Anything larger than 50k should be an "at the bank" transaction. Getting a signed receipt from the seller for

the deposit, even if you're rolling to the bank right the, is prudent as well. Just sayin'...

You do realize that federal forms would have to be filled out and submitted to everybody's favorite Uncle for scrutiny. Cash transactions, while legal, are done for a reason.

[Troy]

Depends. If the "cash offer" is 20% of my asking price then I'll still tell them where they can stick it. If it's close to my "bottom dollar" then we'd have made a deal either way. I doubt if I'd ever carry $20k+ into a transaction where I didn't know anyone - especially not if I was basically cold calling on a car. I know people who have done it with a lot more money though. Not a risk I'm willing to take. I don't know that I've ever sold anything when I was desperate either. Mental state of the seller has a lot to do with whether the sell-it-on-the-spot approach will work.

Troy

[Tilar]

When I sell a car I have a minimum that I will take, and regardless of if it is a finance or cash deal, NOTHING goes below that. Most of my car deals require cash but I will work with someone that has to finance, but the price doesn't get cheaper because of cash over financing.

[cudaken]

As a buyer, I have a quick question for you guys that have sold a lot of cars in your day.  What % off do you feel a stack of 100 dollar bills gets a buyer?  I realize every sale is different and every seller has a different situation. 

Just for an example, a car that costs 40k the seller may come down to 37.5 if the buyer has to finance.  If the buyer shows up with 35k in 100's it is sold on the spot.

Are we talking car lot, or private individual?

[polywideblock]

doesn't "cash rule"   
  over here if I pay with cash I can expect a discount e.g. I buy a fridge and pay cash would expect 70-80 dollars or more off for paying cash .
same when buying cars paying cash  means no banks /financial institutions, no taxman with his hand in your pocket , less transfer fees and rego  etc
only people that know how much you payed or he got is the two of you 

[ECS]

Are we talking car lot.....

I recently bought a new C7 Stingray and new Cadillac for my Wife.  Paid "cash" (actually a check for the purchase price) for both of them and it didn't make a bit of difference in getting a better deal.  They would rather someone finance a vehicle because they immediately cash in on the the purchase price plus the financing charges.  If it's a $50K vehicle, the Dealership collects about $60K as soon as the title is transferred/sold to the financing Company.

[69white hat]

You wanna buy my beer fridge or old lawn mower, I may go lower for fresh crisp cash.


You wanna buy my CHARGER, The price is the price. Period.

[Cooter]

Surprized anybody even uses cash anymore.

[74bluecharger440]

Being a tradesman ( Plumber) I can tell you everyone wants to pay cash to avoid the tax

[duanesterrr]

Thanks for the input guys!

Ken - I am talking about a private sale from an add on Craigslist or Carsonline for instance. 

I agree with everyone I doubt I could walk around with that much cash.  I didn't even think of the tax implications but that would be a big item for a seller I can imagine.

[69rtse4spd]

Surprized anybody even uses cash anymore.

That is about all I deal in, or Postal money order. 

[68X426]

Surprized anybody even uses cash anymore.

That is about all I deal in, or Postal money order. 

Cash talks in these parts, because then you can hide it (sale proceeds) from the wife.

I'm I right or am I right?

[bakerhillpins]

Anything larger than 50k should be an "at the bank" transaction. Getting a signed receipt from the seller for

the deposit, even if you're rolling to the bank right the, is prudent as well. Just sayin'...

You do realize that federal forms would have to be filled out and submitted to everybody's favorite Uncle for scrutiny. Cash transactions, while legal, are done for a reason.

As I understand it the only way to avoid this is to make all your banking transactions in increments of less than 10k, cash or not. If you don't use a bank and operate solely outside the system on cash only then yes, you will not trigger the paperwork.

[Steve P.]

Most of my big sales have been make at the bank. On parts and such it is cash or paypal. For me it is the safest way to go.

I had to chase someone down for money 1 time in my life. That was enough to change my ways for good.

[ws23rt]

Anything larger than 50k should be an "at the bank" transaction. Getting a signed receipt from the seller for

the deposit, even if you're rolling to the bank right the, is prudent as well. Just sayin'...

You do realize that federal forms would have to be filled out and submitted to everybody's favorite Uncle for scrutiny. Cash transactions, while legal, are done for a reason.

As I understand it the only way to avoid this is to make all your banking transactions in increments of less than 10k, cash or not. If you don't use a bank and operate solely outside the system on cash only then yes, you will not trigger the paperwork.

What you are understanding is a way to perhaps avoid triggering an alert to the IRS.

This is my understanding as well---that cash transactions of less than 10K are not reported by banks. But I would not count on that as it would be just as easy for them on a whim or by direction to report anything they thought was odd.

A teller once told me about a regular depositor that brought in moldy cash for deposit week after week.  That was a flag that did not end well for the depositor

Suppose this---you bought a charger in 1978 for $600. and it was a hemi 4sp with low miles in great shape.  You held on to that car for all these years and now want to sell it. Your "basis" is $600.  That is what the IRS needs to know in order to determine their cut. 

Now you have a buyer with let's say $60,000 cash.  You like the deal and so does the buyer. Done and the car is gone.

Now what you have to do is report the $60,000 cash as income and subtract the $600 "basis"---That leaves $59,400 income that is I believe taxed at 15%--which means you owe the IRS $8910.-----They will take a check no problem

[charge69]

ws23rt: basically right but, if the Charger needed restoring and you have the receipts to show it cost you 60k to restore it, you owe the IRS NOTHING!

A good reason to keep all receipts for restoration items on your Charger!

If your receipts only total......say 45K and you have the paperwork to show you spent $600.00 on the Charger initially, That selling price of 60K minus the $45600.00 you have receipts for, make a $14400.00 profit reported to the IRS.  I would say you better have those receipts handy for the IRS though!

[charge69]

Also, that 10K limit before triggering a "look" by the IRS at your banking history is just a guideline! My friend that is on the Board of Trustees of a Savings & Loan told me any transaction of $2500.00 or more will get reported as well as regular deposits even smaller than that if they are cash deposits.

They are looking for drug money laundering, mainly, but, a cash sale on a nice car would fit right in!

[ws23rt]

ws23rt: basically right but, if the Charger needed restoring and you have the receipts to show it cost you 60k to restore it, you owe the IRS NOTHING!

A good reason to keep all receipts for restoration items on your Charger!

If your receipts only total......say 45K and you have the paperwork to show you spent $600.00 on the Charger initially, That selling price of 60K minus the $45600.00 you have receipts for, make a $14400.00 profit reported to the IRS.  I would say you better have those receipts handy for the IRS though!

I agree with you on this.  In my example their was no restoration. Just cleaning and maintenance. My intent was to remind us that the IRS want's a piece of whatever income we have even if it is illegal such as drug sales for example.  Drug dealers need to report their income as well as the rest of us   (BTW that would make the IRS a party in a crime).

It is true that expenses for restoration are deductible but they are costs of parts and labor (done by others).

I have a charger 500 that I partially restored.  I have the receipts for the few parts and materials that I used but the hundreds of hours spent by my self are not considered has having value.  Had I paid someone else to do the work and had the receipts to prove it than it would be deductible.

When we work for ourselves and gain value by that effort it is for free.