Don't say "I'm Paying Cash" at Car Dealerships

[Itsme]

Originally Posted by Pis-ton broke

its govco trying to push everybody into a cashless society. maybe in five years they will says 5k max cash transactions, slowly,slowly they work towards what the govco wants.

thats how the govco win, very sneaky. (ie. passing controversial laws on or just before long weekends). the cash economy, is an economy that the govco cant control or tax.

you ever done a cash job (cashie) for someone? and did you pay tax on it?

B.S. there is no such limit on cash transactions in Australia, you must however declare anything over $10,000 cash to Australia Border Force if leaving or entering Australia.

[Tassie f100]

Originally Posted by Officemanager

B.S. there is no such limit on cash transactions in Australia, you must however declare anything over $10,000 cash to Australia Border Force if leaving or entering Australia.

At present there is no law regarding cash transactions of $10k,but the proposed law has been presented to the senate, so there is a pretty fair chance that such transactions will become illegal sooner rather than later

[Pis-ton broke]

Originally Posted by Officemanager

B.S. there is no such limit on cash transactions in Australia, you must however declare anything over $10,000 cash to Australia Border Force if leaving or entering Australia.

i never said there was a limit, but they are trying to push it thru.
its on the sly, read before calling me a b,s, artist.

[KobiXR6T]

Originally Posted by Tassie f100

At present there is no law regarding cash transactions of $10k,but the proposed law has been presented to the senate, so there is a pretty fair chance that such transactions will become illegal sooner rather than later

I'm pretty sure when we are talking about paying cash in the event of buying a car we are simply implying not financing.

A bank cheque or direct deposit wouldn't be included in laws above, as they are about reducing laundering. Anything that goes into a bank account can be accountable. Questions could be asked why you've always got cash coming in from undelcared income etc.

[M&Ms]

Originally Posted by FTE217

well its all and great at low rates but what about the interest and residual ?
What you pay over 3yrs + that irks me no matter the low rates.

I DD the whole buy price when Sprint was ready - why did I ? because I could fortunately. Finance is great when you haven't the liquid.
Buying any car your at a loss the moment you drive off, why pay more than what its worth over a loan period - tax concessions arn't that great in any case and IF you were to hang onto the car its cough cough to a already and more depreciating item hence many stay in the finance/lease merry go round.
Buying outright IF you can reduce's the leakage, why wouldn't you.

0.08% interest, I pay around $250 interest on $115k over 3 years with no residual. I don't get your point. It actually works out better than paying cash considering the time value of money.

[KobiXR6T]

Originally Posted by M&Ms

0.08% interest, I pay around $250 interest on $115k over 3 years with no residual. I don't get your point. It actually works out better than paying cash considering the time value of money.

They're still making their money out of your sale one way or another.

Big mark up/RRP possibly with little discount at time of purchase. Never get something for nothing!

[M&Ms]

Originally Posted by KobiXR6T

They're still making their money out of your sale one way or another.

Big mark up/RRP possibly with little discount at time of purchase. Never get something for nothing!

Just moving stock, rrp is $165k driveaway. Brand New with 19km on it. Dealer claimed to be making 400 bucks off me (oh and 3 year free servicing thrown in for good measure)

[FTE217]

what are you paying a month ? if you don't mind asking.

[KobiXR6T]

Originally Posted by M&Ms

Just moving stock, rrp is $165k driveaway. Brand New with 19km on it. Dealer claimed to be making 400 bucks off me (oh and 3 year free servicing thrown in for good measure)

Deals can be had if old supply and demand comes into play too. No doubt about it! Bit of an advertising expense on their behalf. Better to get something for it than have 2 year old stock still on the floors continuing to depreciate.

I'm guessing at those price points there probably isn't a whole lot of demand for that particular model as well.

[raised by monkeys]

Originally Posted by KobiXR6T

I've been crunching some numbers on the old novated lease at the moment. I've been through it a couple times now, and in my situation at the end of 3 years I still come out ahead of where I'd be buying upfront.. Then I also save a bit more having that surplus against the mortgage instead of tied up with the car.

What I don't like is the amount coin that gets moved into the hands of the finance and leasing company. I know it's legal, but effectively I'm dodging a good heap of tax for 3 years, and most of that is paying others to help more people pay tax. I just don't see the logic in it..

What you don't pay in tax ends up in company X to manage your lease and attached costs i.e. insurance, fuel card, rego and maintenance bucket.

My partner has a novated lease. She had quite a bit of $$ sitting in a maintenance, rego and insurance bucket. She was hard up for cash for an event and can withdraw from that bucket if everything else is up to date inc. servicing, rego and ins. The company 'advised' she only withdraw the minimal amount.

Well of course, theyre earning interest on the bucket of money sitting there in their account, along with the other hundreds of thousands of customers making them a small mint. Along with their 'hidden' charges in the contract. They don't manage your lease out of goodwill

[raised by monkeys]

Originally Posted by raised by monkeys

What you don't pay in tax ends up in company X to manage your lease and attached costs i.e. insurance, fuel card, rego and maintenance bucket.

My partner has a novated lease. She had quite a bit of $$ sitting in a maintenance, rego and insurance bucket. She was hard up for cash for an event and can withdraw from that bucket if everything else is up to date inc. servicing, rego and ins. The company 'advised' she only withdraw the minimal amount.

Well of course, theyre earning interest on the bucket of money sitting there in their account, along with the other hundreds of thousands of customers making them a small mint. Along with their 'hidden' charges in the contract. They don't manage your lease out of goodwill

I would like to crunch the numbers regarding salary sacrifice options. I salary sacrifice with a third party offered through the agency I work for (capped at something like 16k per year) towards regular bills such loan repayment (mortgage), rates, water etc. My partner can salary sac but hers is used completely on her novated lease.

If she purchased the car outright with financing from our bank (against the house to get the lower interest rate 3%) and the repayments to the loan were arranged through salary sacrifice. Then managed her own rego, servicing and fuel, would this save us $$ over a 5yr lease contract, where she then has to purchase the vehicle (10k residual) from finance/savings.

[KobiXR6T]

Originally Posted by raised by monkeys

I would like to crunch the numbers regarding salary sacrifice options. I salary sacrifice with a third party offered through the agency I work for (capped at something like 16k per year) towards regular bills such loan repayment (mortgage), rates, water etc. My partner can salary sac but hers is used completely on her novated lease.

If she purchased the car outright with financing from our bank (against the house to get the lower interest rate 3%) and the repayments to the loan were arranged through salary sacrifice. Then managed her own rego, servicing and fuel, would this save us $$ over a 5yr lease contract, where she then has to purchase the vehicle (10k residual) from finance/savings.

It starts to get complex, and even more so given that all the estimates are just that, only estimates. Change of circumstances and the goal posts keep moving.

The novated lease I'm looking at works the same way with maintenance costs sitting in a pool. You can pay a fee to have them manage it, or it can be self managed, and as you've said extra funds can be added, or you can withdraw extra funds (gets paid through payroll and you pay tax on what you want to take out). I believe you save GST on any maintenance costs as well by using the lease.

Like you said though, at the end of the term you come out a couple grand better off, however most of the tax savings have been eaten up by the middle men, with commissions and interest.

Or like some of my other quotes, the value of the vehicle pushes things out of scope and you don't get any savings and effectively end up paying more than the vehicle was worth by the time its paid out.

[Poetic Justice]

I do always laugh when someone asks what the cash price is for cars.

As if to say it's the 1970s and I can somehow hide it from the tax man.

[M&Ms]

Originally Posted by FTE217

what are you paying a month ? if you don't mind asking.

PM'd you

[NTF6]

Originally Posted by hayseed

Mum & I were only talking about it last weekend. We both agreed, We would've walked out & left the cash on the counter....

Its everywhere!

Went to a restaurant recently with my wife and two other couples, after a great night of food and wine with the bill clocking up to around $800, we went to pay. I said to the guy "just split the bill 3 ways". He said, "I can't do that!". "Why not I asked, "we don't split bills, our system won't allow it"

I said "that's alright, luckily mine does" and pulled out the calculator on my phone, divided the bill by three and said "just put $xxx on my credit card"

He got rather angry and said "I'm not going to split the bill".

I said mate "if you want to get paid, you'll split the bill or I'm walking out"

He said "I'll just call the police"

I said "please do and when they get here I'll tell them I'm trying to pay my bill and you won't let me!"

He snatched the credit card out of my hand and processed my amount

[Itsme]

Originally Posted by Pis-ton broke

i never said there was a limit, but they are trying to push it thru.
its on the sly, read before calling me a b,s, artist.

Never called you B.S. artist, your words not mine.
Just made a comment on cash limits.

[Crazy Dazz]

What if I say "I need to fart"?
Are there any other phrases I am banned from saying at a dealership?

[Crazy Dazz]

Originally Posted by raised by monkeys

I would like to crunch the numbers regarding salary sacrifice options. I salary sacrifice with a third party offered through the agency I work for (capped at something like 16k per year) towards regular bills such loan repayment (mortgage), rates, water etc. My partner can salary sac but hers is used completely on her novated lease.

If she purchased the car outright with financing from our bank (against the house to get the lower interest rate 3%) and the repayments to the loan were arranged through salary sacrifice. Then managed her own rego, servicing and fuel, would this save us $$ over a 5yr lease contract, where she then has to purchase the vehicle (10k residual) from finance/savings.

Salary sacrificing only works if you are employed by a PBI, or similar, and they have a partial exemption from FBT. Otherwise it is literally pointless.
Most of the saving available on a car has been taken away.
The packages offered are a con: They purport to offer savings, but the savings are faked. Compare what they want to charge you, to what a simple loan costs (with an equivalent balloon) plus your maintenance etc, and you'll realise just how much they are trying to rip you off.

[Craig@AUDI]

Originally Posted by Poetic Justice

I do always laugh when someone asks what the cash price is for cars. As if to say it's the 1970s and I can somehow hide it from the tax man.

The only good thing about paying cash is the cars get coded to the paperwork, no delays waiting for finance approval, or potential finance fallovers.

[Craig@AUDI]

Originally Posted by Crazy Dazz

What if I say "I need to fart"?
Are there any other phrases I am banned from saying at a dealership?

That's what the car lot/car park is for!

[98TLS]

Originally Posted by Poetic Justice

I do always laugh when someone asks what the cash price is for cars.

As if to say it's the 1970s and I can somehow hide it from the tax man.

nail/head to be fair,late 80s worked for Toyota dealership for 5 years then a stint at a Ford outfit for a couple,the "cash' thing got pretty boring to be fair and made me cringe inwardly,theres two ways to pay ie pay or take a walk with me over to the finance managers office and pay more

[4stanger]

Originally Posted by 98TLS

nail/head to be fair,late 80s worked for Toyota dealership for 5 years then a stint at a Ford outfit for a couple,the "cash' thing got pretty boring to be fair and made me cringe inwardly,theres two ways to pay ie pay or take a walk with me over to the finance managers office and pay more

wouldn't it also depend on how short the dealership is of their monthly, rolling year targets?
Surely if there is an in stock vehicle out the back, growing cobwebs for sitting too long, dealership principle demanding to hit sales targets, you would rather deal with a cash buyer, than wait for the tyre kicker's finance approval to come through?

[jpd80]

Originally Posted by GCRXR6

I wonder how that would be legal. I mean, cash is legal tender. To refuse cash is to decline payment?

It's not unlawful to decline a cash payment but, if it's to pay an existing debt
and no other way exists to pay they are generally required to honour it.


FYI, things like $1 & $2 coins have a legal tender limit of ten times their face value,
so technically, you can't even pay $20 in $1 coins but the limit for $2 coins.
Most will accept it but it's there to stop hoarding and paying debts with a
suitcase full of coins.


Most car dealers don't really want touch cash regardless of financing kickbacks,
a cash transactions raises alarm bells for the tax man, I'll save you money on the
stamp duty by making the sale price $10k less and you pay me $10k under the table

[98TLS]

Originally Posted by 4stanger

wouldn't it also depend on how short the dealership is of their monthly, rolling year targets?
Surely if there is an in stock vehicle out the back, growing cobwebs for sitting too long, dealership principle demanding to hit sales targets, you would rather deal with a cash buyer, than wait for the tyre kicker's finance approval to come through?

Not at all,there was no stock out back growing cobwebs i was selling new it was pretty much money for jam blah blah fwiw dealerships back then and maybe even now ran in 1/4s re sales targets and a few times saw cars sold at a loss in order to meet said target which was no skin of dealerships nose as they would be reimbursed by factory,fwiw Nissan would do it plenty to make a sale when dealing with someone that couldnt decide between a Sentra with no power steer or Toyotas equivalent ie the Corolla.To be honest i never dealt with anyone looking at paying cash for a new car that couldnt get finance.People could and probably still do make themselves look stupid when buying cars ie the many that would come in with a difference figure to change,quite happy to pay retail for the new car as long as they got the inflated price they thought the trade was worth,adjust the figures to suit and they were happy as larry.

[Sprintey]

Originally Posted by xxx000

Bank cheques can bounce so they aren't as good as cash.

I'd just like to qualify this. If you get a Bank cheque, it will be drawn on the branch account - you will be able to see the BSB and branch account number in the numbers at the bottom of the cheque - I'd be very, very surprised if that one bounced. Especially since your funds are transferred into the bank branch's account when you get the cheque printed up

If you draw a personal cheque however, that one can bounce and the dealership has no idea if you have the funds to back it - usually they will wait for those to clear, if they accept them.

I've never had problems with bank cheques when buying bigger things.

[pwr4ce]

So how many people still pay cash for large purchases like new cars ( talking over 30k ) ?

[roKWiz]

Originally Posted by pwr4ce

So how many people still pay cash for large purchases like new cars ( talking over 30k ) ?

+ for last yacht.

And there is no law against it currently just a Bank reporting requirement for over $10K.

Bank cheques can not bounce.

[jpd80]

Originally Posted by roKWiz

+ for last yacht.

And there is no law against it currently just a Bank reporting requirement for over $10K.

Bank cheques can not bounce.

Many years ago my parents tried to buy a house
in inner Brisbane with a bank cheque, the old fart
that owned it refused to take any cheques, refused
to accept that a bank cheque was safer than cash.

Crooks have been trying to fly under the $10k radar
for years but the tax department Has smart software
that picks up patterns as well as inconsistent transactions.

[hayseed]

Originally Posted by roKWiz

Bank cheques can not bounce.

True, But they still take 3 business days to Clear into your account...

Ask Me how I know This...

[hayseed]

Originally Posted by pwr4ce

So how many people still pay cash for large purchases like new cars ( talking over 30k ) ?

I paid for my current Ute with a Bank Cheque..

Told the salesman what Options/Accessories I wanted. Haggled a Driveaway price. Then got steered into the F & I Office, Where the hard sell really started...