# How to pay for a car **URL:** \ **Category:** Factual Questions\ **Created:** [March 17, 2016, 8:18pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316 "2016-03-17T20:18:30Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![Telemark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/telemark/32/372_2.png) [@Telemark](https://boards.straightdope.com/u/Telemark)\ **Post date:** [March 17, 2016, 9:16pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/21 "2016-03-17T21:16:32Z")
I’ve always used a cashiers check. ---
**Author:** ![glowacks](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/glowacks/32/5548_2.png) [@glowacks](https://boards.straightdope.com/u/glowacks)\ **Post date:** [March 17, 2016, 9:24pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/22 "2016-03-17T21:24:23Z")
When I bought a previously leased car a friend was turning in, the dealership allowed I think $1000 of the purchase price to be on a credit card. My mother wrote a check off her investment account, into which I had transferred my few investments, equal to whatever had been transferred to her (made more sense to do it that way than liquidate the investments), and I wrote a check for the balance. The grand total was somewhere around $12k. There wasn’t an issue with verifying the funds. Perhaps it was because they already had received 3 years of payments from the previous lessor who was providing us as buyers from whom they could seek payment if our checks weren’t honored. Perhaps they assumed that if they were getting two separate checks and a credit card such as they were, it was incredibly unlikely for us to be giving them checks that weren’t fully backed. ---
**Author:** ![chrisk](https://avatars.discourse-cdn.com/v4/letter/c/6de8d8/32.png) [@chrisk](https://boards.straightdope.com/u/chrisk)\ **Post date:** [March 17, 2016, 9:27pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/23 "2016-03-17T21:27:14Z")
I used a bank draft, which I think is similar to a cashier’s check. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [March 17, 2016, 9:36pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/24 "2016-03-17T21:36:36Z")
Do not pay actual currency cash over $8000. Over $10000 you get reported and under that you might get reported for structuring. New cars run at least $15K, and you’d just write a check, unless your credit is complete shit, in which case you’d have a cashiers check. You can use a CC, sure, in some cases. ---
**Author:** ![silenus](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/silenus/32/166_2.png) [@silenus](https://boards.straightdope.com/u/silenus)\ **Post date:** [March 17, 2016, 9:40pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/25 "2016-03-17T21:40:50Z")
We just bought a new car. They checked our credit and I wrote them a check. I’ve done this for every “cash” purchase of a vehicle I’ve ever done. ---
**Author:** ![core](https://avatars.discourse-cdn.com/v4/letter/c/d26b3c/32.png) [@core](https://boards.straightdope.com/u/core)\ **Post date:** [March 17, 2016, 9:47pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/26 "2016-03-17T21:47:52Z")
With some credit card companies you can overpay your bill using billpay from another bank and it will allow you to charge more than your limit. Not always in the same transaction though. But for some companies it won’t work at all. 2% of 10k is $200 so it’s worth at least asking about. Citi was friendly in this respect, as I recall. > [@silenus](#): > > They checked our credit and I wrote them a check. I would not take a hard pull for this… I value hard pulls at about $500, which equals a just-OK signup bonus for a decent credit card. All to save a few bucks on a cashier’s check? ---
**Author:** ![bob\_2](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bob_2/32/3341_2.png) [@bob\_2](https://boards.straightdope.com/u/bob_2)\ **Post date:** [March 17, 2016, 10:01pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/27 "2016-03-17T22:01:41Z")
I bought a £23,000 ($33,300) car last week. They took my debit card and I entered the PIN. That was it - job done. I had sold my old car the previous day to a dealer (webuyanycar) and the cash was credited to my account in under 12 hours. Cheques are so last century. Actually, if I had paid by cheque, they would have made me wait three/four days until it was cleared. ---
**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\ **Post date:** [March 17, 2016, 10:51pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/28 "2016-03-17T22:51:43Z")
> [@DrDeth](#): > > Do not pay actual currency cash over $8000. Over $10000 you get reported and under that you might get reported for structuring. What is missing in this advice is that there is literally nothing wrong with being reported for depositing or withdrawing a large amount of cash. You aren’t going to be questioned, you won’t be audited, nothing. It simply means that there will be a record filed away, along with many millions of others, that if one day you got arrested for money laundering, this little scrap of evidence would be added to the case. Representations that there is something wrong with having a transaction reported is, by far, more dangerous than actually moving cash around. Paranoia that the reports actually are a bad thing, as opposed to routine record keeping, makes people think that they should avoid ways of triggering the report. To repeat myself again, there’s nothing wrong with having a transaction reported, but attempting to avoid the reporting is a serious crime whether you’re up to no good or not. Bottom line: do not worry about actual cash transactions in your daily life. Nobody cares. ---
**Author:** ![Bricker](https://avatars.discourse-cdn.com/v4/letter/b/977dab/32.png) [@Bricker](https://boards.straightdope.com/u/Bricker)\ **Post date:** [March 17, 2016, 11:04pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/29 "2016-03-17T23:04:41Z")
> [@Ravenman](#): > > Bottom line: do not worry about actual cash transactions in your daily life. Nobody cares. Indeed. In fact, a misunderstanding of the issue may lead to the self-fulfilling prophecy of committing the crime of structuring: “I heard something about $10,000 transactions being reported, so I decided it was better to split this $12,000 payment into two $6000 payments at different branches!” If you are engaged in legitimate business and need large amounts of cash, then do it. The report simply memorializes the fact that you did it, which, since your business is legitimate, should not bother you at all. Of course, there are other good reasons to avoid large cash transactions, such as the security of your cash as you carry it around. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [March 17, 2016, 11:06pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/30 "2016-03-17T23:06:01Z")
> [@Ravenman](#): > > What is missing in this advice is that there is literally nothing wrong with being reported for depositing or withdrawing a large amount of cash. You aren’t going to be questioned, you won’t be audited, nothing. It simply means that there will be a record filed away, along with many millions of others, that if one day you got arrested for money laundering, this little scrap of evidence would be added to the case. > > Representations that there is something wrong with having a transaction reported is, by far, more dangerous than actually moving cash around. Paranoia that the reports actually are a bad thing, as opposed to routine record keeping, makes people think that they should avoid ways of triggering the report. To repeat myself again, there’s nothing wrong with having a transaction reported, but attempting to avoid the reporting is a serious crime whether you’re up to no good or not. > > Bottom line: do not worry about actual cash transactions in your daily life. Nobody cares. While it is true there is nothing to worry about with a Currency Transaction Report **CTR** (over $10000 at a bank, etc), but: [https://www.fincen.gov/whatsnew/html/ctr\_faqs.html](https://www.fincen.gov/whatsnew/html/ctr_faqs.html) So yes, it’s fine to withdraw or deposit $10000+ _into a bank_, etc. Unless you’re a criminal, of course. I would \*not \*be so sanguine about a _Form 8300._ which is what the car dealer files. > **[Form 8300 and reporting cash payments of over $10,000 | Internal Revenue Service](https://www.irs.gov/businesses/small-businesses-self-employed/form-8300-and-reporting-cash-payments-of-over-10000)** > > Generally, if you're in a trade or business and receive more than $10,000 in cash in a single transaction or in related transactions, you must file Form 8300. The Form 8300, Report of Cash Payments Over $10,000 in a Trade or Business, provides... and yes, you do not want to try to avoid either and thus get a **SAR** aka Suspicious Activity Report. [https://www.fincen.gov/news\_room/rp/sar\_guidance.html](https://www.fincen.gov/news_room/rp/sar_guidance.html) ---
**Author:** ![suranyi](https://avatars.discourse-cdn.com/v4/letter/s/e36b37/32.png) [@suranyi](https://boards.straightdope.com/u/suranyi)\ **Post date:** [March 17, 2016, 11:06pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/31 "2016-03-17T23:06:53Z")
> [@spamforbrains](#): > > Why can’t you just use a debit card? > They have card swipers in car dealerships because that’s how a lot of people pay their down-payment (when they are taking a loan). I don’t know know about debit cards but the last time I bought I car I wanted to use a credit card (for the points) and the dealer said he wouldn’t put more than $5000 on it. I wrote a personal check for the rest. ---
**Author:** ![seal\_cleaner](https://avatars.discourse-cdn.com/v4/letter/s/e274bd/32.png) [@seal\_cleaner](https://boards.straightdope.com/u/seal_cleaner)\ **Post date:** [March 17, 2016, 11:06pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/32 "2016-03-17T23:06:56Z")
Re: cheap cars - my daugher’s chevy spark cost $12,500. I wrote a personal check for my truck, about $34,000. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [March 17, 2016, 11:07pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/33 "2016-03-17T23:07:44Z")
> [@Bricker](#): > > Indeed. In fact, a misunderstanding of the issue may lead to the self-fulfilling prophecy of committing the crime of structuring: “I heard something about $10,000 transactions being reported, so I decided it was better to split this $12,000 payment into two $6000 payments at different branches!” > > If you are engaged in legitimate business and need large amounts of cash, then do it. The report simply memorializes the fact that you did it, which, since your business is legitimate, should not bother you at all. > > Of course, there are other good reasons to avoid large cash transactions, such as the security of your cash as you carry it around. Yes, we call those “Idiot SARs”. Do not make your bank file a Idiot SAR on you. ---
**Author:** ![ThelmaLou](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/thelmalou/32/390_2.png) [@ThelmaLou](https://boards.straightdope.com/u/ThelmaLou)\ **Post date:** [March 17, 2016, 11:32pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/34 "2016-03-17T23:32:22Z")
I wrote a personal check for my car. ---
**Author:** ![jz78817](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jz78817/32/1028_2.png) [@jz78817](https://boards.straightdope.com/u/jz78817)\ **Post date:** [March 17, 2016, 11:39pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/35 "2016-03-17T23:39:28Z")
> [@Kimballkid](#): > > Green Stamps. > > One of the local dealers has a huge sign on the wall that says they cannot put a vehicle purchase on > a credit card. I wonder if this is in response to some people fraudulently contesting the charge afterward. > [@DrDeth](#): > > Do not pay actual currency cash over $8000. Over $10000 you get reported and under that you might get reported for structuring. > > New cars run at least $15K, and you’d just write a check, unless your credit is complete shit, in which case you’d have a cashiers check. > > You can use a CC, sure, in some cases. Those are IRS rules, and I don’t think OP is in the US. ---
**Author:** ![RealityChuck](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/realitychuck/32/195_2.png) [@RealityChuck](https://boards.straightdope.com/u/RealityChuck)\ **Post date:** [March 17, 2016, 11:41pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/36 "2016-03-17T23:41:28Z")
> [@iljitsch](#): > > Suppose I want to buy a car. A new car is at least $10k, right? > > Suppose I have the money in the bank. But how do I actually pay for the car? I don’t want to walk around with that much cash, and the limit on my cards doesn’t even come close to that. > > So…? I put the car on my credit card, then paid it off the next month. The car was actually over my limit, but the company let it go through. I just couldn’t use the card again until I went under the limit. But I got a ton of points and a free hotel stay out of it. If that’s not an option, bring your checkbook. ---
**Author:** ![watchwolf49](https://avatars.discourse-cdn.com/v4/letter/w/e9c0ed/32.png) [@watchwolf49](https://boards.straightdope.com/u/watchwolf49)\ **Post date:** [March 17, 2016, 11:55pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/37 "2016-03-17T23:55:25Z")
My brother bought his first airplane with cash … $35,000 in the 1990’s … the bank said they had to ship the cash in overnight and the next day the DEA was waiting there for him with a list of questions … pretty funny ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [March 17, 2016, 11:55pm UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/38 "2016-03-17T23:55:58Z")
> [@silenus](#): > > We just bought a new car. They checked our credit and I wrote them a check. I’ve done this for every “cash” purchase of a vehicle I’ve ever done. Ditto here. I think the check was from our investment account. They quoted me an interest rate before they did the credit check - it was quite amusing to see how much it plunged after they got the results of the credit check back. I wish I could put a car on my credit card - I get cash back and would get back a few hundred bucks. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [March 18, 2016, 1:13am UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/39 "2016-03-18T01:13:03Z")
> [@jz78817](#): > > . > > Those are IRS rules, and I don’t think OP is in the US. Well, yes, his location is The Hague, but his OP is in **$,** so… But the EU has very similar rules. ---
**Author:** ![UDS](https://avatars.discourse-cdn.com/v4/letter/u/ecae2f/32.png) [@UDS](https://boards.straightdope.com/u/UDS)\ **Post date:** [March 18, 2016, 2:17am UTC](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316/40 "2016-03-18T02:17:27Z")
> [@iljitsch](#): > > I did a quick search and it looks like here in Holland neither exist anymore. > > However, depending on your bank electronic transfers can be immediate or you can increase the limit on your debit card temporarily, so that’s how most people seem to do it. > > Still, there must be people who need to pay large sums and can’t make it happen. What the US calls a “cashier’s cheque” is known in the rest of the Anglophone world as a “bank draft”. English-language websites in the Netherlands are more likely to use BrE than AmE. It’s just possible you may be searching under the wrong term. (I’ve no idea what the Dutch term would be, I’m afraid.) [Previous page](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316.md?page=1) [Next page](https://boards.straightdope.com/t/how-to-pay-for-a-car/749316.md?page=3)