# How do you pay for a car with cash? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [March 23, 2010, 6:03pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509 "2010-03-23T18:03:34Z")\ **Posts on this page:** 20\ **Page:** 3
**Author:** ![cantara](https://avatars.discourse-cdn.com/v4/letter/c/6f9a4e/32.png) [@cantara](https://boards.straightdope.com/u/cantara)\ **Post date:** [March 24, 2010, 4:52pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/41 "2010-03-24T16:52:21Z")
> [@Cosmic Relief](#): > > LOL. Then the merchant swipes your card for a $25,000 charge and it’s declined as ‘suspicious’, and when you call your bank they tell you that you have to pre-approve charges over a certain amount. That’s how that works. I had spoken to my banks Visa department to make sure I could do this prior to going. At that time I didn’t have enough credit, so I had deposited the money as a credit on to the card. They listed the expected transaction on my file. > [@](#): > > The vendor should have happily volunteered to run the transaction, recomputed to add the credit card commission to your total cost. 2% of $25,000 is 500 bucks, not exactly chump change. Actually it’s kind of presumptuous on your part to effectively spring a $500 surcharge on the dealer at the last minute and not expect there to be any repercussions. I was not aware of the commission that they have to pay to their service provider when I tried this. I also don’t think I should be inquiring what their Visa costs are or paying their commission. It is a cost of doing business. I don’t inquire what other businesses have to pay their providers when I pay them. I certainly did not spring the surcharge on the dealer. He asked how I wanted to pay for it and I pulled out my Visa. He did note that he should have asked how the transaction would be paid during the negotiation rather than at the end. (I had said that I would be paying for it outright, not financing, and left it at that.) In fact the merchant agreement I linked to indicates that they are not allowed to charge extra based on the amount that is being purchased. > [@](#): > > Always honor valid Visa cards in your acceptance category, regardless of the > dollar amount of the purchase. Imposing minimum or maximum purchase > amounts in order to accept a Visa card transaction is a violation of the Visa rules. > > Always treat Visa transactions like any other transaction; that is, you may not > impose any surcharge on a Visa transaction. You may, however, offer a discount > for cash transactions, provided that the offer is clearly disclosed to customers > and the cash price is presented as a discount from the standard price charged for > all other forms of payment. I think this whole scheme ended up costing me money since Visa charged me a Cash Advance fee when I transferred the credit balance back to my account. I don’t recall all the details as this was 10 years ago. ---
**Author:** ![septimus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/septimus/32/410_2.png) [@septimus](https://boards.straightdope.com/u/septimus)\ **Post date:** [March 24, 2010, 7:20pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/42 "2010-03-24T19:20:18Z")
> [@cantara](#): > > I was not aware of the commission that they have to pay to their service provider when I tried this. Odd. Surely these fees are well known. > [@cantara](#): > > I also don’t think I should be inquiring what their Visa costs are or paying their commission. It is a cost of doing business. 😕 The credit card fee is a cost of doing business … with customers who pay by credit card! They would have to be pretty simple-minded to negotiate the same price for card-payer as cash-payer. I used to get discounts at hotels routinely by offering to pay cash. When I asked if this violated their bank contract their reply was the same as street hookers! 😃 “Hey, you solicited me; I didn’t solicit you.” ---
**Author:** ![luv2draw](https://avatars.discourse-cdn.com/v4/letter/l/46a35a/32.png) [@luv2draw](https://boards.straightdope.com/u/luv2draw)\ **Post date:** [March 24, 2010, 7:44pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/43 "2010-03-24T19:44:46Z")
Personal check. With all the razz-ma-tazz computerized stuff I bet they can check right away that you’ve got the funds… 😉 ---
**Author:** ![Bijou\_Drains](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bijou_drains/32/2814_2.png) [@Bijou\_Drains](https://boards.straightdope.com/u/Bijou_Drains)\ **Post date:** [March 24, 2010, 7:48pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/44 "2010-03-24T19:48:46Z")
> [@Chefguy](#): > > I’ve purchased my last five cars with a personal check. No problems, ever. They call the bank before you ever get the keys. So what if you buy at night or on a weekend? Can they call your bank then? Maybe they have a 24/7 number to call. ---
**Author:** ![suranyi](https://avatars.discourse-cdn.com/v4/letter/s/e36b37/32.png) [@suranyi](https://boards.straightdope.com/u/suranyi)\ **Post date:** [March 24, 2010, 8:08pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/45 "2010-03-24T20:08:12Z")
I’ve bought two new cars within the last five years with personal checks. No problem at all. I think the salesman had to call someone to see if my checks should be honored, but it was out of my eyesight so I don’t know for sure. In any case they were accepted. ---
**Author:** ![Tapioca\_Dextrin](https://avatars.discourse-cdn.com/v4/letter/t/3d9bf3/32.png) [@Tapioca\_Dextrin](https://boards.straightdope.com/u/Tapioca_Dextrin)\ **Post date:** [March 24, 2010, 8:14pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/46 "2010-03-24T20:14:00Z")
The last two cars I bought had to be special ordered (in one case there was one available in the whole of Texas, the most recent one was the only one available in the whole US). No problems with writing a check and waiting. ---
**Author:** ![ralph124c](https://avatars.discourse-cdn.com/v4/letter/r/8797f3/32.png) [@ralph124c](https://boards.straightdope.com/u/ralph124c)\ **Post date:** [March 24, 2010, 8:42pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/47 "2010-03-24T20:42:56Z")
No cite, but for many years, one of the largets Porsche dealership on the east coast was in Lawrence, MA (a city known for drug distribution. According to a guy I knew there, they did make several cash sales. ---
**Author:** ![Brynda](https://avatars.discourse-cdn.com/v4/letter/b/e79b87/32.png) [@Brynda](https://boards.straightdope.com/u/Brynda)\ **Post date:** [March 24, 2010, 9:20pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/48 "2010-03-24T21:20:01Z")
Heh. Pretty funny to picture little old law-abiding me as a suspected drug dealer. 🙂 I am buying it on a Saturday, but my bank will be open at that time. ---
**Author:** ![whitetho](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/whitetho/32/1059_2.png) [@whitetho](https://boards.straightdope.com/u/whitetho)\ **Post date:** [March 24, 2010, 9:26pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/49 "2010-03-24T21:26:47Z")
> [@Voyager](#): > > I used a personal check when I bought my car 6 weeks ago. They actually ran a credit check on me before they took it. This was the same thing I encountered 5 years ago. ---
**Author:** ![BigT](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bigt/32/12044_2.png) [@BigT](https://boards.straightdope.com/u/BigT)\ **Post date:** [March 24, 2010, 9:51pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/50 "2010-03-24T21:51:21Z")
> [@septimus](#): > > Odd. Surely these fees are well known. > > 😕 The credit card fee is a cost of doing business … with customers who pay by credit card! They would have to be pretty simple-minded to negotiate the same price for card-payer as cash-payer. And, again, the agreement says they can’t do that. If they want, they could say “No credit cards, period,” but they can’t charge you extra for it. > [@](#): > > I used to get discounts at hotels routinely by offering to pay cash. When I asked if this violated their bank contract their reply was the same as street hookers! 😃 “Hey, you solicited me; I didn’t solicit you.” As for a cash cost decrease, that IS perfectly in the rules. ---
**Author:** ![wolfman](https://avatars.discourse-cdn.com/v4/letter/w/a8b319/32.png) [@wolfman](https://boards.straightdope.com/u/wolfman)\ **Post date:** [March 24, 2010, 9:57pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/51 "2010-03-24T21:57:06Z")
I used to know an old rancher who had lived through the depression. He only dealt in cash his whole live, which he kept in duffel bags in a big safe. One time back in the 80’s he went bought a $180,000 combine in 10s and 20s. They went down to the bank so they would only have to count it once. ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [March 24, 2010, 10:35pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/52 "2010-03-24T22:35:20Z")
> [@whitetho](#): > > This was the same thing I encountered 5 years ago. Our check wasn’t from our bank, it was from our Merrill Lynch account. I guess I could have raised a stink, but we had driven back and forth between a bunch of dealers and got a better price than anyone reported online, so it wasn’t a big deal. And I like the reactions to our credit score. 🙂 I wish I had thought of paying by Discover card - we’ve got the credit balance, and it would have been a ton of cashback. Next time. It was a Toyota dealer also - if my old car had waited a few more weeks to die I could have gotten an even better deal. ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [March 24, 2010, 11:01pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/53 "2010-03-24T23:01:50Z")
> [@Bijou\_Drains](#): > > So what if you buy at night or on a weekend? Can they call your bank then? Maybe they have a 24/7 number to call. They’ll do a credit check on you as soon as you agree to purchase the vehicle. If you have a good score and your address is verified, they’ll take your check. ---
**Author:** ![Dangerosa](https://avatars.discourse-cdn.com/v4/letter/d/22d042/32.png) [@Dangerosa](https://boards.straightdope.com/u/Dangerosa)\ **Post date:** [March 24, 2010, 11:07pm UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/54 "2010-03-24T23:07:55Z")
I think the last six cars we’ve owned have all been purchased with personal checks. No, I’m misremembering, we’ve financed a few due to 0% financing and unable to work a cash price that gives us the same deal, but we’ve definitely bought cars with personal checks. ---
**Author:** ![Cheshire\_Human](https://avatars.discourse-cdn.com/v4/letter/c/5f8ce5/32.png) [@Cheshire\_Human](https://boards.straightdope.com/u/Cheshire_Human)\ **Post date:** [March 25, 2010, 2:27am UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/55 "2010-03-25T02:27:00Z")
> [@Bijou\_Drains](#): > > So what if you buy at night or on a weekend? Can they call your bank then? Maybe they have a 24/7 number to call. Yes, there is a call number. Same number they call to see if your VISA has a high enough credit limit. The clown in question was trying to reneg on a deal he had negotiated, because he was expecting a “financed” agreement, instead of cash. He got a “kickback” on “financed”, and wasn’t going to get it in this case. Let the _ **seller** _ beware. Boo Hoo… Pity the poor seller… ---
**Author:** ![Cheshire\_Human](https://avatars.discourse-cdn.com/v4/letter/c/5f8ce5/32.png) [@Cheshire\_Human](https://boards.straightdope.com/u/Cheshire_Human)\ **Post date:** [March 25, 2010, 2:34am UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/56 "2010-03-25T02:34:54Z")
I’ve bought 5 cars. Only the second one was “financed”. I got ripped off on the financing. The other 4 were paid for in cash. If you can’t afford it in cash, you don’t need it. Buy whatever you can pay for with cash, and deal with the fact that you bought junk. More often than not, you will have gotten better than you could have gotten with financing. ---
**Author:** ![Cheshire\_Human](https://avatars.discourse-cdn.com/v4/letter/c/5f8ce5/32.png) [@Cheshire\_Human](https://boards.straightdope.com/u/Cheshire_Human)\ **Post date:** [March 25, 2010, 3:00am UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/57 "2010-03-25T03:00:22Z")
And by “Cash”, I mean LITERALLY, Benji $100s. No checks, personal or bank. ---
**Author:** ![Perciful](https://avatars.discourse-cdn.com/v4/letter/p/b38774/32.png) [@Perciful](https://boards.straightdope.com/u/Perciful)\ **Post date:** [March 25, 2010, 3:11am UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/58 "2010-03-25T03:11:28Z")
I like a cashiers check myself. I paid for my last two that way. You have a receipt and he doesn’t have to worry about a check bouncing. Not that yours would but a lot of places don’t take checks personal checks anymore. Enjoy the new wheels! ---
**Author:** ![Balthisar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/balthisar/32/2825_2.png) [@Balthisar](https://boards.straightdope.com/u/Balthisar)\ **Post date:** [March 25, 2010, 4:34am UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/59 "2010-03-25T04:34:47Z")
> [@Cheshire\_Human](#): > > I’ve bought 5 cars. Only the second one was “financed”. I got ripped off on the financing. The other 4 were paid for in cash. If you can’t afford it in cash, you don’t need it. Buy whatever you can pay for with cash, and deal with the fact that you bought junk. More often than not, you will have gotten better than you could have gotten with financing. That’s pretty cynical. There are lots of good reasons to use credit, even when you have the liquidity available to use cash. ---
**Author:** ![bengangmo](https://avatars.discourse-cdn.com/v4/letter/b/50afbb/32.png) [@bengangmo](https://boards.straightdope.com/u/bengangmo)\ **Post date:** [March 25, 2010, 6:25am UTC](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509/60 "2010-03-25T06:25:25Z")
I heard of a Lamborghini being paid for in cash…(or at least a substanial portion) Also, I understand that for substanial purchases the dealership pays a far lower comission. (I have heard as low as 0.9%) [Previous page](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509.md?page=2) [Next page](https://boards.straightdope.com/t/how-do-you-pay-for-a-car-with-cash/533509.md?page=4)