Buying a Car Cash...

[MikeInWimbledon]

Not correct I have bought cars for £70k+ from a dealer and transferred the money in chunks of £25k per day which is the maximum daily allowance that the bank allowed.

Here's the link to HM Government's EU regulatory requirements for money laundering reporting in the event of payments greater than £10k. In essence it's all about identifying payee and payer, so that money laundering and tax evasion "could" be investigated.

Information you must send with a transfer of funds to prevent money laundering

 

[jimbg]

I bought an E Class estate in September for £33k and paid the MB dealer over 2 days and a Range Rover in 2017 for £70k+ from a LR dealer.

How else do you think you can pay if you are using your own money?

The link above is for businesses.

 

[DSM10000]

I bought an E Class estate in September for £33k and paid the MB dealer over 2 days and a Range Rover in 2017 for £70k+ from a LR dealer.

How else do you think you can pay if you are using your own money?

The link above is for businesses.

That may be so but there would have been n checks on your transactions which is why banks place limits on daily transfers.

 

[jimbg]

Well I have never had a problem and I am sure if you have had an account for a decent period of time then there never will be.

If you open a new account and money pours in from a dubious overseas source then you may be right!

 

[Alps]

WElcome back spinal!

two things to worry about

1. UK customs and carrying that amount of money may rise alarm bells.
2. UK Banks anything over £10K in cash raises alarm bells.

I have had a seller pay in cash under £10K before, i took them to the bank and they deposited the money into my account and that way the bank count and checked the notes.

Good luck with your purchase!

Alps

 

[pmcgsmurf]

Think it all comes down to what folks are comfortable with.

If someone I did not know turned up with £30k cash I'd say no.
Would rather not face all the questions when paying this in or run the risk of it being "dodgy".

I'd want a bank transfer done for folks I didn't know so that the only thing I have to show is I sold car A for xx amount.
We can do same day transfers within the EU banks through the business online for £12 so should not be to much of a problem to do this for the purchaser.

 

[Deleted member 150136]

Whats the big deal about alarm bells ringing if its legitimate money?
Just answer whatever questions are asked.
You are allowed to have cash.

Its only a concern if its dodgy money.

 

[pmcgsmurf]

Whats the big deal about alarm bells ringing if its legitimate money?
Just answer whatever questions are asked
You are allowed to have cash.

Its only a concern if its dodgy money.

By "dodgy" I mean if it is counterfeit.

 

[DavE400]

Take cash in and out of the UK

You must declare £10,000 or more in cash, or the equivalent in another currency, if you take it between Great Britain and any other country.

www.gov.uk

You can declare the cash online before you travel via Declare cash you carry into or out of the EU

Biggest concern would be ,,,,,

Penalties​

You could face a penalty of up to £5,000 if you do not declare your cash or give incorrect information.​

Your declared cash can be seized by customs officers if they have reasonable grounds to suspect a crime. They can keep the cash for 48 hours - after that they need a court order.​

 

[poormansporsche]

The last mb my dad bought cash circa 2004. The Men in Black from the Revenue were there with their cattle prods before my Dad even left. Never again said he.

 

[MikeInWimbledon]

I bought an E Class estate in September for £33k and paid the MB dealer over 2 days and a Range Rover in 2017 for £70k+ from a LR dealer.

How else do you think you can pay if you are using your own money?

The link above is for businesses.

Yes, that's what businesses such as your bank, or a car dealer, HAVE to do in terms of recording who is transferring money to whom.

"Here's the link to HM Government's EU regulatory requirements for money laundering reporting in the event of payments greater than £10k. In essence it's all about identifying payee and payer, so that money laundering and tax evasion "could" be investigated."

That's why your bank records the data about the funds transfer, and that's why your two car dealers recorded information about your two different purchases. It's about recording the two sides of the transaction. It's NOT about stopping or banning the transaction. It's a level of bureaucracy which would make it easier to track what you've been up to, "if" someone decides to investigate, be it HMRC, the police, or the Security Services.

Here's the process applied when you buy from Pendragon, but most dealers are the same:
https://www.pendragonplc.com/-/medi...sponsibilty/anti-money-laundering-policy.ashx

Regards carrying cash through Customs, as others have said, you're welcome to carry cash through borders, but you do need to declare that you're carrying it.

We've come a long way from the days of Cilla Black buying her house in Spain in the 1970's by baking a loaf and hiding a grand INSIDE the loaf
Memories of a doomed currency limit

 

[jimbg]

Well none of that applies to the transactions I have described, that is all about physical cash or other unusual payments.

There is no mention of a normal person buying a car and transferring the money from his bank account.

Do you have any experience that indicates otherwise, or this just what you have read?

I know most people "rent" their new cars these days, but how do you think people pay for a car if they do not need a loan and wish to use their own funds?

 

[mattc]

Only that International bank transfer takes a day ?? If it takes longer do it earlier .
You are right nobody in their right mind accepts a briefcase full of cash from someone that has just flown over from West Africa

I would like to accept a brief case full of cash, wouldn’t be fussy where they flew in from.

W1ighty, decades ago that's exactly what we did. Some of you know my past profession. If we ever have another BOTG someone ask me about it and other stories from my earlier life.

 

[Steeve]

I think the maximum amount you can spend in the UK in cash is 10K anything more would be considered potential money laundering. Last expensive car I bought was at Sytner BMW and I had to make multiple 10K payments from my bank account to theirs.

This is just Sytner being lazy and trying to get around more admin work. Over £10k they need to make sure they carry out work to check the source of funds (a simple copy of the bank / savings account statement usually suffices).

Sytner asking you to transfer in chunks of £10k or less is them dodging the system and HMRC would take a very dim view of it.

 

[Abb]

I think the waters are being muddied a little here. 'Cash' as I understand it, is physical money (bank notes in a briefcase scenario) which people have their own views on, and bank transfers, which is completely different, as I understand it.
If it is in the bank, it is in the system, therefore for all intense purposes it is legitimate (I appreciate how it got into the bank may be questionable).

Personally if someone wished to purchase my vehicle in cash, I would have no issues with it, as long as they accompanied me to the bank and it all checked out (no counterfeit notes) . It is not down to me to me to interrogate the seller where the money has come from, as long as I take all reasonable precautions and can prove how I came about the money. The responsibility would lie with the purchaser to answer the questions put to them by the bank, with the added security it would all be captured on CCTV.

All said and done, it is all down to personal choice and whatever people are comfortable with. Not everyone who deals in cash is bent as our politicians

 

[Darrell]

Personally if someone wished to purchase my vehicle in cash, I would have no issues with it, as long as they accompanied me to the bank and it all checked out (no counterfeit notes) .

Same here but I’d like that person with the cash to meet me inside the bank. I’ve heard horror stories before regarding cash, a cosh and some big blokes that reside in caravans.

 

[W1ghty]

W1ighty, decades ago that's exactly what we did. Some of you know my past profession. If we ever have another BOTG someone ask me about it and other stories from my earlier life.

Decades ago thats how stuff happened with physical cash , these days everyone is a lot safer with bank transfers .
Most people who are selling a car and hearing the op on the phone explaining his preferred method of payment would steer a wide birth , the person who doesn’t flinch from that conversation is selling something that most people probably could do with not buying in the first place

 

[Deleted member 149005]

BACS transfer if your and receiving bank support faster payments, else a CHAPS payment (c £25 fee) - simples

The £10k limit is for debit card transactions, not bank transfers....

i sold a car a few months ago - buyer turns up, we agree a deal, he sends an online bank transfer, 30 seconds later the funds are in my account and i complete the V5 change of ownership online

 

[jimbg]

Exactly! That's what I said in post #3

 

[MikeInWimbledon]

Well none of that applies to the transactions I have described, that is all about physical cash or other unusual payments.
There is no mention of a normal person buying a car and transferring the money from his bank account.
Do you have any experience that indicates otherwise, or this just what you have read?
I know most people "rent" their new cars these days, but how do you think people pay for a car if they do not need a loan and wish to use their own funds?

Understood, Jim, I was just pointing out that the restrictions don't "just apply to businesses," as you suggested. See my post. Any individual paying cash TO a business, such as to Sytner, is recorded / reported under the Anti Money Laundering and international tax evasion legislation and regulations. All as I described. A private individual can pay or receive any amount in cash -it's legal tender - the odd limits of £10k or £25k that banks and dealers talk about are AML avoidance and anti-fraud related controls.

Payment by cash from individuals, to individuals is slightly different. But as soon as any individual pays large cash sums into their bank, the receiving bank has another duty to record the exceptional cash sum, so that it can be subsequently easily investigated by HMRC and the other interested government departments: Police, Security services etc.

In passing, the issue with cash payments, for the receiver, is still the high quality of fake bank notes (and even coins) now in circulation, which cannot be identified by the naked eye. The Bank of England reckons that there are a million fake bank notes in circulation at any one time, but that's no protection if you've sold to someone who might have his own proper supply of newly imported fakes.

Bank of England explanation of current: Counterfeit banknotes

Before anyone complains that some fakes can be spotted by the naked eye - obviously that's true. It's the sophisticated fakes that need the machines to pull them out. Here's the checklist for basic "fakes"

Link: How to spot a "basic" fake £10 note