Buying a car cash!

[Mad Manny]

When I bought one of the bakkies, which I was paying 'cash' (i.e. no HP) a few mates said I should pay with my Mastercard to get the rewards points.
I was convinced they were talking crap, but they insisted they were right.
I had my doubts but....
So I moved the R250k into my Credit Card account and went to collect the brand new bakkie.

The salesman asked how I was paying, I said Mastercard.

'Notafok!' He said, if you pay with Mastercard I need to add 6% to the price.

So I went home, transferred the money back to my cheque Acc and paid by EFT - took PoP to them so they could proceed with registration etc.

I also told my mates that they were clueless Cnuts...

[jakeslouw]

One is usually judges by the quality of your mates........you have problems.

[BushWacker]

… one might be tempted to pay cash
with pre-tax income … (250@25% tax ? etc )
.. and purchase that cab
without paying the VAT ,..(250@15% ? etc)
How would one ensure the sale
does not short-change the rest of us poor Saffers,
… the Rank and File workers ?

[Mad Manny]

What are you talking about Chas?
You cannot avoid tax on a new vehicle purchase.

You can only claim the tax back on qualifying vehicles...

[Redman]

If you walk into most dealerships with a bag containing just R25'000 cash you will raise a few eyebrows...
Section 28 of the FIC Act requires accountable institutions to report these transactions. (I know this is up for consideration to make it R50k, but it was still R25'000 when I did my compliance training at the beginning of the year)

However, if you can get that bag of cash (R500'000) into your bank account and then EFT the branch they will offer you a cup of coffee while they print your invoice...

If the cash comes via a South African bank account (EFT or swiping of card) the responsibility sits on the bank for ensuring the source of the funds is above board and not the dealership.

[Ricof4e]

^ Bingo Dingo

[BushWacker]

Im not saying such cash transactions are legal
but there is generally a motive/reason
for large cash in bag transactions !
… maybe Cyril had such in mind ?!

Incidentally to my knowledge, it is not permissible
for a retailer to surcharge (‘6%’ etc) for a card payment.

[grips]

On all cash deals I have done on vehicles I were able to negotiate substantial discounts. Meaning deals by EFT.

You will also be surprised how many dealers are willing to take hard cash.
Cash is still king. Just don't hide it in a sofa

Sent from my SM-S901E using Tapatalk

[BushWacker]

To my knowledge FICA ( act ) was instituted
by the US as part or consequence of the Patriots Act to facilitate surveillance & intelligence on people & transactions etc
Although the US couldnt enforce its implementation
in other countries they could, did, and do make life
very difficult for countries that resisted such co-operation and compliance.
A key concern was , and is, large grey market transactions
.. typically in cash or otherwise untraceable ‘currencies’ … gold, bitcoins, even Tanzanite ! etc etc
Cash is the most common medium of large black market transactions … often to maintain anonymity, avoid records traceability etc
The Province of the UnderWorld
… where Tax is but one consideration !
Guess thats also partly why banks also have to notify on even perceivably reasonable ‘cash thru Bank’ transactions over R25000.
As the saying goes ‘Wheres theres Smoke, there’s Fire ‘
so too:
Where theres big cash transactions theres Questions’

I.M.O

[Mad Manny]

Chas, everyone is aware that FICA and the reporting of large deposits was designed to regulate the banking industry and keep tabs on illicit money being moved, particularly by drug dealers, the general underworld and terrorist organizations...

[Ricof4e]

You forgot Lawyers.

At least give us an honourable mention.

[Mad Manny]

The only good lawyer is a dead lawyer.
Then they are only good for 3 days before they start to smell....