How do you pay cash for a car? Walk in with a suitcase of hundreds? How does it technically work?

Answer 1

I've known it to be done several ways. The "briefcase" method (which is necessary nowdays considering the price of cars) and even the "pocket wad" method which my grandfather practiced each time he bought a new car in the 50's-70's. Typically though, when somebody pays for a car outright, they get a cashiers check from their bank, or write a personal check to the dealership. Either check (if from a local bank) can be verified within a few minutes for authenticity and validity. By the way, to the guy above me, the IRS is informed of ANY transaction over 10 grand whether it be a loan or a cash transaction. If you pay cash for a $10,000 car, the IRS doesn't know any more about you than if you got a loan for the same amount.
My suggestion, if you're paying for a car with cash is not to walk in and announce you're going to do so. It takes a little restraint, but whatever you do, don't tell the dealer right off. Most people assume that since they're paying cash, they'll get the best deal. Not so. Nowdays, dealers make a significant profit off of jacking up interest rates when customers finance the vehicle. (I.E. Not giving them the lowest interest rate the customer is qualified for.) So, if the dealer knows right off the bat that they're not going to make a profit off of the financing, they won't be willing to lower the vehicle price as far. So, with that being known, the best way to do business is do your research, find the car that you're really interested in and then shop the ads and lots after hours for the best overall out-front deal. Once you find what you want for the best local price, go into the dealer and ask to test drive it. While driving the vehicle, point out some things you like and some things you wish were a little different. Or, even some things you plain don't like about it, but don't rag on the vehicle, or the salesman will think you're a waste of time. Once you get back to the dealer, park it back in the spot where it came out of and NOT in front of the showroom (to act like you're not that interested), then throw them a god-awful rediculous price BEFORE you walk into the showroom - preferably, right as you exit the car. I'm talking 25-30% BELOW the posted price. They'll probably laugh at you, and then either throw you a modest price drop off the top of their heads or just say that there's no way they can help you. If they do, simply state that you know the invoice price is AT LEAST 10% under what they're asking, not to mention what incentives and rebates they're holding out on. Then you'll probably find yourself being invited to "talk numbers". When you get in there, you'll hear this and that about how there's no way they can go that low. If they don't throw a number back at you, tell them to take your original offer back to their manager. The salesman WILL return with a counter offer. At this time, take your original offer and add 2%, and get another counter-offer. Do this several times and work up slowly until you get to a reasonable point (should usually be at 20% - 25% below sticker price) then drop the bomb and plunk the money on the table, then tell them that you're not budging on the the fact that you're not willing to pay any processing fee, adjusted market value, or BS like that AND they're eating the taxes or working it into the price of the car to come out at the same price. What you put down is what you walk out of there paying.....Period.
If you're at a dealer that does decent volume, you're going to walk out of there a new car owner under this scenario every time. If they do low volume, chances are they don't get the bigger incentives from the manufacturer, so they might truly not be able to afford to sell you the car this cheap. If they can't make the deal on these terms or better...walk. The scenario I listed above is for dealing in the last quarter of the year when the brand new model years are out.....if its the start of the next year, take another 5% off your bottom line.....if it's late in the year and you're dealing on a "same year" model car (an '07 model in late '07), take off 10%. If it's late in the year and you're dealing on a "same year" model car and the new model is significantly redesigned, take 15% off the original offer.
Note: Be sure to keep them off of a "monthly payment" deal and on a "final price" deal. Also, if they ask you what you're planning to do on financing, tell them you're not sure yet, but you have a good credit score, and you know that you'll be well under a 45% debt-to-income ratio when you get the price down to where you want it. (This will let them know that you know what it takes to get a loan and they should back off). Remember, don't let them know about the cash deal until the most optimal time. I know I'm long winded, but I hope this helps!

Answer 2

I pay "cash" for all my cars; it's usually in the form of a money order or cashier's check, but I've paid with actual folding money too.

Usually there is (or should be) a written contract, or purchase agreement, or purchase bill-of-sale that protects both parties in the event of a dispute. The written document takes precedence over any verbal agreement unless one or both parties can provide witnesses to the sale, so it's always a good idea to take a friend along.

The contract should spell out the selling price, year, make, and model of the car, the mileage, the VIN (check to be sure it's right) and any known defects, any warranty promises, or a statement that the car is sold "as is." It should have the date and be signed by both parties. I prefer a contract over a simple receipt, but I've done that too when buying from friends or relatives (the ones I trust). You should leave the closing with a clear title signed by the seller, a copy of the signed contract, and the car keys (I like having more than one set, they should surrender all copies).

In some states the seller, whether a dealer or private party, has certain obligations about the condition of the car (e.g., a valid state inspection certificate).

Answer 3

You can hand the dealership a brick of hundred dollar bills for the full amount if you want to. You can also hand them a personal check or a cashier's check. The buying process would work pretty much the same as it would if you were going to finance the car. You would need to agree on a total price (including tax, tag, and title), but the part where you get approved for financing would be cut out. Some dealerships will actually give you a discount if you buy the car outright. When you do that, the tags and title will be applied for, and you will receive them in the mail in a few days.

Answer 4

I write a check. Of course they will probably call the bank to see if it's any good. You can't make that big of a purchase with a debit card. Most machines have a maximum daily transaction per customer of around $5000. Also if you're paying for the car without financing you can negotiate a better price. Money talks and BS walks. If they won't deal take your business down the street to the next dealer. It's funny to watch them trip over themselves when they figure out you're serious. Oh by the way, David W. you can keep financing cars if you want to keep paying half the price of the car in finance charges.

Answer 5

When people say they pay cash, rarely do they really pay with paper money. Most likely they would be by check or credit card (yes you can by a car on credit card).

If you did pay with paper money it probably wouldn't take a suitcase full of money. If you buy a 8000 car that is only 80 $100 bills which you could wad in your pocket. I doubt many people would do this for obvious reasons.

Answer 6

You can Either Pay in Installments or Like you said, Just walk in with the cash. I'm Pretty sure you'd be better off Paying In a Check that is Made as Cash.

Answer 7

A check is the same as cash. Write a check to pay for the car unless you have some reason to keep the purchase a secret. I suppose you could use a money order, if that's the case. You would have to get the absolute final price (taxes, fees, etc) in advance.

Answer 8

Usually there is (or should be) a written contract, or purchase agreement, or purchase bill-of-sale that protects both parties in the event of a dispute. The written document takes precedence over any verbal agreement unless one or both parties can provide witnesses to the sale, so it's always a good idea to take a friend along.

Answer 9

I dont know what ever body else is talking about I pay cash for my wifes car with no problems. actually got a better deal since i was paying cash.

Answer 10

Everyone above is correct, if you try to pay cash, as in greenbacks, you will receive a visit from the DEA wanting to know where you acquired all that cash money. Drug dealers use to buy autos with greenbacks years ago to launder drug money and it raised enough suspicion to get the feds involved.