Buying a car cash!

[Mike Nel]

You walk into a dealership with a suitcase or Woolies bag with R500K in cash.

Would that dealership help you?

And this is not limited to cars only. What about a house, or anything very expensive.

Does the meaning “I bought this or that cash” still have any meaning?

[jakeslouw]

I'd say most legit dealers would get on the phone to SAPS or SARS...........

EFT is cash.

[Mad Manny]

Not really...

[Ricof4e]

Car dealers are reportable institutions wrt FICA.

Most dealers would not assist you. Too much reporting PT with FICA

[Onwards]

Even if you do EFT for a cash purchase, dealer will screw you because he gets no kick back from the bank on the loan.

Answer, no bought it cash is not the ultimate prize anymore

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[HenriSteyn]

But that's how the ANC and connected does this surely?

[Erin]

If a car dealer is also an FSP (Financial Services Provider) then they are also an accountable institution in terms of the FIC Act, and have a duty to report cash transactions of R50,000 or more (recently increased from R25,000).

[Mad Manny]

Paying cash by EFT?
If you EFT the money it's not cash.

[iandvl]

I doubt a dealership would assist on a cash deal. Apart from FSP stuffs, I understand that business bank charges on large cash deposits are somewhat pricey...

That said, the last three vehicles I purchased were EFT deals, of which two were dealership deals.

4.5 Patrol purchased from dealership in the Cape. EFT'ed the sum after checking I was happy.
4.8 Patrol (the one the ex-wife wrote off). Purchased from fellow Patrol forum member. EFT.
Mitsu ASX (the recently acquired one). Purchased from dealership. EFT'ed the sum after checking I was happy.

Even if you do EFT for a cash purchase, dealer will screw you because he gets no kick back from the bank on the loan.

I think they're pretty happy with purchases without financing. Lots of people apply for finance and don't get it. Meaning that despite the sales person jumping through hoops to close the deal, it is not a guaranteed sale until the bank says so. A cash deal means that, despite not getting any kick backs from finance, it is a guaranteed sale. It puts you, as the buyer, in a pretty good bargaining position. Besides, there are plenty other ways they'll attempt to get more dosh out of you. After market warranties etc.

The thing that really gets my goat are the so-called "onroading" fees.

[jakeslouw]

Paying cash by EFT?
If you EFT the money it's not cash.

It's as close as you can get to paper money. And it's as close as possible to immediate if you do instant payment.

[Erin]

Yup, an EFT, or even a once-off debit order, qualifies as a cash transaction, and must be reported if the amount exceeds R49,999-99...because you might be a terrorist.

[AndreasR]

Sadly, you could walk into quite a few dealerships with R500 000 cash and the salesman will say” well, that’s a nice deposit, when you bring the rest, we will be able to give you a car”.

[Ricof4e]

Yup, an EFT, or even a once-off debit order, qualifies as a cash transaction, and must be reported if the amount exceeds R49,999-99...because you might be a terrorist.

That's quite strange. Over here the definition of cash is just that: cash payment of cash deposit into a bank account. EFT are not considered cash payments here - in any event the reporting obligation then falls upon the financial institution from whom the money was transferred.

[Erin]

FSPs here are under the whip with regards reporting, and a recent FSCA report mentioned the failure to do so as one of the leading reasons for non-compliance. Heavy fines are applicable.

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[jakeslouw]

It's a moot question anyway: you'd be bloody mental to walk ANYWHERE in ZA with half a bar in cash...