What does it mean by "cash in hand"

**rajiv1998** · 06-07-2010, 04:33 PM

What do people mean by "cash price" when selling a car. I ask because im looking into a car and the guy is asking 25k for it. My friend asked "20k cash and ill pick it up tommorow" and the guy agreed. Does that mean I bring an envelope with 20k liquid cash and hand it to him? I just dont understand how this is an advantage over a certified cheq? My only guess is that cash would be black money and he doesnt have to show/pay taxes on it unlike a cheq?

Im just lost because why would he go down by 5k for a "cash" price? Hes gonna get the money either way even if he gets a cheq for 20k or if he finances the car. Whats the advantage of a "cash" price????

**mark21742** · 06-07-2010, 04:38 PM

cash is harder to trace and tax, plus the seller could writeup a bill of sale for less than the price to save the buyer some taxes.

Plus you can't spend a cert check at the local strip club

**rajiv1998** · 06-07-2010, 04:46 PM

Originally Posted by mark21742

cash is harder to trace and tax, plus the seller could writeup a bill of sale for less than the price to save the buyer some taxes.

Plus you can't spend a cert check at the local strip club

Well on a 20k car how much tax will I be paying? 7%??? Thats like an extra $1400!! Why cant he spend the $$? Once I give him the cheqe he can go to the bank and cash/deposit it cant he? Isnt cash also bad in a way? If I give the guy 20k cash I will have NO PROOF that I gave him the $. I know I can make a bill of sale but still. At least with a cheqe you know where the $ went and should something happen you can always fight it because the bank did issue you the cheqe.

**Baluchitherium** · 06-07-2010, 04:47 PM

Money/Cash talks....

Plus, it also means,no BS like "I have to get the financing in order" or "as soon as I sell my car then I'll come check your car out" and of course the ever famous "will you take payments?"

It's a term that basically means no BS I am serious,have the money ready for an immediate purchase... many times a seller will bite at such a buyer even at a small loss or after being frustrated with the process of selling a car...

Also ignorance can play a role in wether or not a seller will accept a certified check or not.... after all in this day and age, technology has made it much easier for someone to fake a document such as a check,money order...etc.. even cash!!

Plus I agree with the statement about taxes....even the strip club comment!

**rajiv1998** · 06-07-2010, 04:49 PM

Originally Posted by Baluchitherium

Money/Cash talks....

Plus, it also means,no BS like "I have to get the financing in order" or "as soon as I sell y car then I'll come check your car out" and of course the ever famous "will you take payments?"

It's a term that basically means no BS I am serious,have the money ready for an immediate purchase... many times a seller will bite at such a buyer even at a small loss or after being frustrated with the process of selling a car...

Also ignorance can play a role in wether or not a seller will accept a certified check or not.... after all in this day and age, technology has made it much easier for someone to fake a document such as a check,money order...etc.. even cash!!

Plus I agree with the staement about taxes....even the strip club comment!

I understand that, but isnt a certified cheqe from my bank just as good? He can go deposit that $ anytime he wants to. Its basically good as cash because he will still have the $$, he just has to make an extra stop at the bank to get it.

**Hi-Po** · 06-07-2010, 04:55 PM

Yes, a Cashiers check is just as good as dollar bills. I still say I paid cash for my TA, even though on the trip down there I turned it in for a cashiers check. Paying in paper currency is a great way to get robbed.

**Baluchitherium** · 06-07-2010, 04:56 PM

Originally Posted by rajiv1998

I understand that, but isnt a certified cheqe from my bank just as good? He can go deposit that $ anytime he wants to. Its basically good as cash because he will still have the $$, he just has to make an extra stop at the bank to get it.

I know what you are saying man and you have valid points but,some sellers are just... hmmm... "flakey"??

Many people handle deals with cash and are comfortable with it,if you aren't (understandably) I would not make a cash deal.Personally I would not pay in cash on a car but,I would probably accept cash as payment as I did when I sold my SS earlier this year. I just mde sureto have plenty of documentation of the sale,the amount,the car's details including condition and clearly stating that there isn't any warranty....etc.. even used driver's license numbers and VIN#s...etc..

I guess it's not for everyone though...

**rajiv1998** · 06-07-2010, 05:00 PM

Originally Posted by Baluchitherium

I know what you are saying man and you have valid points but,some sellers are just... hmmm... "flakey"??

Many people handle deals with cash and are comfortable with it,if you aren't (understandably) I would not make a cash deal.Personally I would not pay in cash on a car but,I would probably accept cash as payment as I did when I sold my SS earlier this year. I just mde sureto have plenty of documentation of the sale,the amount,the car's details including condition and clearly stating that there isn't any warranty....etc.. even used driver's license numbers and VIN#s...etc..

I guess it's not for everyone though...

I would be willing to meet him at his bank if he wanted to. This way he knew for sure the cheqe was good and once it clears he can hand me the keys.

**mark21742** · 06-07-2010, 05:03 PM

Originally Posted by rajiv1998

I would be willing to meet him at his bank if he wanted to. This way he knew for sure the cheqe was good and once it clears he can hand me the keys.

now that sounds like a good idea!

**Baluchitherium** · 06-07-2010, 05:07 PM

Originally Posted by rajiv1998

I would be willing to meet him at his bank if he wanted to. This way he knew for sure the cheqe was good and once it clears he can hand me the keys.

Sounds reasonable to me!

Run it by him,if he doesn't bite... walk on. Like I said,sounds like a very reasonable offer.Make sure though to do this early in the day as banks tend to come up with tons of surprise red tape when handling larger amounts.

Good luck man!

**408WS6** · 06-07-2010, 06:37 PM

When your staring at 20k in cash, you will then know the answer to your question. It is very enticing to see all that cash..oh yeah..

**Y2KPewterSS** · 06-07-2010, 06:49 PM

**rajiv1998** · 06-07-2010, 06:53 PM

Imagine if they actually made that. Pull that bad boy put at a Ferrari showroom and be lik. Yeah I'll have one of those. Better yet at a 7-11 and say "could u change a million?"

**rbob93** · 06-07-2010, 07:02 PM

Well.....if you show up with 20K in cash, it's easier to knock you out & take it than force you to write a check.

**clovenhooves** · 06-07-2010, 07:41 PM

I did the meet-at-the-bank thing, and it worked. I would never hand a stranger thousands of dollars in cash.

**DrMilhouse** · 06-07-2010, 08:30 PM

If I were taking $20k to pay for a car, I'd probably get him to meet me at the police station, inside it... Something to make sure you don't get KTFO and robbed. I'd say a cashier's cheque at the bank is a pretty good alternative.

**67CamaroRSSS** · 06-07-2010, 10:37 PM

Any transaction through a bank (or other institution) over $10K gets reported to the feds because of all the 9/11 BS from the PATRIOT Act.

**Jeff Jones** · 06-08-2010, 07:29 AM

My bank (Chase) makes me wait 7 to 10 days for the cashier's check to clear, not much different from a personal check anymore. You can however go to the bank where the check is drawn from and get the cash. I personally like to work with cash no banks etc...

**imprtkillr2810** · 06-08-2010, 07:53 AM

Originally Posted by Jeff Jones

My bank (Chase) makes me wait 7 to 10 days for the cashier's check to clear, not much different from a personal check anymore. You can however go to the bank where the check is drawn from and get the cash. I personally like to work with cash no banks etc...

This. Most banks around here make you wait up to 2 buisness weeks before the check actually clears if its over $10k. Maybe the guy cant wait that long? Either way id make sure that you do it at a bank or police station like some of the posts above said.

**Detroit Power** · 06-08-2010, 08:34 AM

Originally Posted by 67CamaroRSSS

Any transaction through a bank (or other institution) over $10K gets reported to the feds because of all the 9/11 BS from the PATRIOT Act.

Agreed, but payment recieved for goods through private party sale such as this is not taxed as income to the seller.

When I sold my Mustang for $9,999 the buyer showed up with 10k in hundred dollar bills. I didn't have a $1.00 to give him so I told him I'd scrounge up some change. He laughed and said don't worry about it.

I wasn't thrilled about that much money exchanging hands in my home, but I was carrying and he was most likely carrying as well. The buyer brought his kid with him and my wife was present too (kids were at the neighbor's house).

The money went in my safe that night (Saturday) until Monday morning when I took it to the bank. I never keep a firearm in the nightstand but I did for those 2 evenings.