Cash is king?...

maxmycardagain

Family member has saved hard and has a substantial amount of cash and wants to buy a car around £10,000
Are there rules on money laundering/cash, etc when dealing with garages?

TIA 

neilmcl

Cash isn't king, hasn't been for a long time. Yes, there are money laundering issues when dealing with cash, I think the threshold for transactions is currently €10,000 (or around £8,800). Does this family member have a bank account, can they not pay via debit card or bank transfer, preferably credit card? 

facade

The same as all businesses, 10,000 euro is the threshold.

However, a lot of dealers won't take cash, apart from the deposit, as their banks rip them off for a % when they pay it in, as well as having to account for all the checks  on it as regards moneylaundering.

Probably best to pay it into the bank, and then do a BACS transfer.  Talk to the dealer, usually you don't pay for the car and drive it away, so there is time to pay it into the bank and do the BACS transfer.

maxmycardagain

facade said:

Talk to the dealer, usually you don't pay for the car and drive it away, so there is time to pay it into the bank and do the BACS transfer.

wont be doing 2 x150 mile trips to view then collect, no delivery over long distances either
but also many want "admin fees" above sticker price, another con

maxmycardagain

wont credit card transactions hit charges?

neilmcl

maxmycardagain said:

facade said:

Talk to the dealer, usually you don't pay for the car and drive it away, so there is time to pay it into the bank and do the BACS transfer.

wont be doing 2 x150 mile trips to view then collect, no delivery over long distances either
but also many want "admin fees" above sticker price, another con

That still doesn't prevent you from using a bank debit card for payment or bank transfer whilst you're there, and as mentioned will be worth paying a deposit on a credit card for extra protection.

jimjames

If it really is physical cash then get it paid into a bank account quick. Saving hard and keeping it as actual cash doesn't make a lot of sense unless there is some reason why it can't be paid into a bank.
You can then easily pay for a car with debit card which is the same as cash - although finance may give a better deal

justworriedabit

neilmcl said:

Cash isn't king, hasn't been for a long time. Yes, there are money laundering issues when dealing with cash, I think the threshold for transactions is currently €10,000 (or around £8,800). Does this family member have a bank account, can they not pay via debit card or bank transfer, preferably credit card? 

You forgot to mention that some dealers won't take  cash over a certain amount.
Cash is not king as you rightly said but no p/x is king.

David713

maxmycardagain said:

wont credit card transactions hit charges?

There may well be some charges payable and if there are, it's the dealer that has to pay as they are no longer allowed to pass these charges onto consumers. (there was legislation brought into force in 2018 that made this illegal).

moneysavinghero

David713 said:

maxmycardagain said:

wont credit card transactions hit charges?

There may well be some charges payable and if there are, it's the dealer that has to pay as they are no longer allowed to pass these charges onto consumers. (there was legislation brought into force in 2018 that made this illegal).

Which is why very few dealers will let you pay the full cost with a credit card.

maxmycardagain

Buyer can find cars but not locally, i can take her on one trip to view/buy but hell am i wasting 2 days/600+ miles on it, she will have to stay local

she sold her car (cash) and gets old fashioned wages weekly in cash, hence the cash, with a bit from her mum..

looks like local sellers/private will be her best way