Author Topic: How to pay for a used car when we have the cash in our bank account?  (Read 5379 times)

SomedayStache

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Hi all, I'm trying to convince my husband to go car-shopping while we are visiting out of state this weekend (the area has a wider selection than we have locally).  If we were to find something we like - how could we pay for it?  The price point would be $7k to $8k.  Do dealerships accept out of state checks?  Credit cards?  What are my other options?

honeybbq

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #1 on: September 19, 2016, 01:19:44 PM »
Hmm. I've paid for multiple cars with a check before, but never out of state. You might need to head to a local bank and get a money order.

Fishindude

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #2 on: September 19, 2016, 01:26:02 PM »
Take cash with you.

Jack

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #3 on: September 19, 2016, 01:36:33 PM »
Take cash with you.

That's a bad idea.

I agree with the "money order" suggestion (a certified check or cashier's check should work too).

Fishindude

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #4 on: September 19, 2016, 01:43:22 PM »
Sold a truck to an out of town guy last week.  He brought (80) $100 bills.
If you carry cash, just be smart, stay out of rough neighborhoods and have somebody you trust with you.
Carrying a gun is never a bad idea in these circumstances either assuming it's legal and you know how to handle it.

BlueHouse

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #5 on: September 19, 2016, 01:48:45 PM »
Credit card -- this is the perfect opportunity to get a major rewards card.  If you have to sign up for a new card, make sure you get the number so you can use it before the card arrives. 

boarder42

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #6 on: September 19, 2016, 01:50:19 PM »
perfect opportunity to invest that money and take out a low  fixed interest loan.

SomedayStache

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #7 on: September 19, 2016, 01:55:12 PM »
My preferred route would be to use a credit card, but I have heard stories of dealerships not allowing this.  I need a backup plan.

Taking out a low interest loan and investing might work for some - but I know myself and we'd just sit on the money until our e-fund got built back up.  Plus loans for almost ten-year-old cars with $100,000+ miles on them don't seem to have the excellent rates that you can get on a new car.

I haven't used a money order in over ten years.  That seems like a good route though I need to look into how they work because I don't remember how to get or use them.  I've never used or cashier's checks or certified checks - I'll look into that option as well.
« Last Edit: September 19, 2016, 02:00:56 PM by SomedayStache »

SomedayStache

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #8 on: September 19, 2016, 02:08:38 PM »
Money orders and official checks all require knowing the purchase amount correct?  That makes things more tricky because I don't know the exact amount or even if we will end up purchasing at all.

CanuckExpat

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #9 on: September 19, 2016, 02:18:41 PM »
Do you have accounts with a bank that has branches in every state?
Once you figure out the purchase price, go get a cashiers check in person.

Also, call the place you are considering buying from and ask if they take personal checks. Some dealerships are able to take the info from the check and turn in into an electronic debit transaction. The check is just there to give them the info

tweezers

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #10 on: September 19, 2016, 02:22:21 PM »
We bought a car from a dealer and were able to put $3K on a credit card.  The rest was a personal check.

Bicycle_B

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #11 on: September 19, 2016, 02:31:35 PM »
Why not take credit cards and checkbook with you, plus $1000 cash and a bit of attitude.  They want a sale, they accept your payment method.  Worst case, they accept a down payment and you follow up with a cashier's check later. 

A dealer can take the card if they want to.  You're the buyer, be assertive. 

GetItRight

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #12 on: September 19, 2016, 06:31:13 PM »
Cash. I've paid cash (green paper) for every vehicle I've ever bought. Most expensive was around $5k+trade. Over $10k or so I'd put a little more effort into being absolutely 100% certain the deal was going to go through before withdrawing the cash. Never bought from a dealer (and never would), but in that case I'd try to pay CC for as much as they'd take + cash for the rest. In your case bring $5k and there's your hard negotiating point if they won't take a CC for the whole thing, to at least take it for a portion. Out of state, cash in hadn and ready to buby but they gotta swallor some fees so you can get some CC rewards and they get the sale. I still recommend buying private party though.

SomedayStache

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #13 on: September 19, 2016, 07:44:07 PM »
I've been looking at private party, but the best options I've found have been at the dealer.  We're looking at minivans and its like finding a unicorn.  All the craigslist listings have 150,000 to 200,000 miles.  There are a few with lower miles at dealerships and we'd like to stay closer to 100k miles.

Zoot

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #14 on: September 19, 2016, 09:11:50 PM »
I wrote a personal check for my last car.  The place I bought it had me log in to my bank account so that I could show them that my balance was sufficient to cover the check; upon verifying that, they happily took it. 

Well, not HAPPILY, since they weren't selling me financing.  :)  But hassle-free!

Bicycle_B

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #15 on: September 19, 2016, 09:32:43 PM »
If you're going to a populated area, see if your bank has a branch there.  If the bank is open, you can go there and get a money order or cashier's check for the amount you choose.

As a backup, you can go to 7-Eleven and make money orders, making payment with a debit card or credit card.  From what I read online, you can only make money orders up to a limit set by the store, typically $500 to $1000.  But apparently you can make several of them, to a trip to just a couple of 7-11's could let you create enough money orders to buy an older vehicle:

http://firstquarterfinance.com/7-eleven-money-order-fees-limits-cashing/

Villanelle

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #16 on: September 20, 2016, 02:12:36 AM »
There's really no reason to carry tons of cash unless you bank at some obscure bank and/or will be making the purchase after banking hours.  If they dealership won't take a credit card or has a limit on how much you can charge (I bought a car and they charged a fee for anything over $5000, so I charged that much they paid for the rest), you can negotiate the deal, then go to the bank and either withdraw cash or get a cashier's check.  If you've negotiated the deal, they will hold the car for 30 minutes while you run to the bank (especially if you put down a small deposit). 

You could also see if your bank will offer you a car loan with no fee.  Use that to pay for the car and then pay off the loan the next day (of course check the loan terms for penalties or other costs). 

Mrs. S

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #17 on: September 20, 2016, 02:44:21 AM »
Do ATM not work in case of out of state accounts where you live. That is usually how we'd manage transactions or else swipe our debit/credit card anywhere in the country. But I am in India and I believe it is not the same everywhere.

MoonLiteNite

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #18 on: September 20, 2016, 02:45:53 AM »
I have used cash.
Also don't pull out the full amount, always pull out a bit less then what you agree too.
You might just get an "ahh its ok! 250$ less is fine" from them :)

marty998

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #19 on: September 20, 2016, 03:12:53 AM »
Ask the car dealer for his bank details and EFT/wire the funds to them?

My dear mother has done this before. Many times. The look on the dealer's face after she has cried poor for 45 minutes negotiating several thousand off the price, plus getting him to throw in a few extras for free... then she declines finance and says 'you will have the cash in your account by tomorrow'

:D priceless

Last car she bought she convinced the salesman to sell it to her at a $1,500 loss to him. She actually wanted more off the price... then he flipped the computer screen around which showed the deal flashing red and needs owner approval in the system.

She didn't blink and said "do you really want to keep that car out there for another day?"

Paperwork was signed a minute later, with 6 months rego and a free tank of fuel added in.

Trifele

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #20 on: September 20, 2016, 04:41:18 AM »
I bought a car from a small out-of-state dealership a couple months back.   They would not take a credit card, but they did take a personal check.   I think it just depends on the seller.

 

SomedayStache

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #21 on: September 20, 2016, 07:02:50 AM »
Do ATM not work in case of out of state accounts where you live. That is usually how we'd manage transactions or else swipe our debit/credit card anywhere in the country. But I am in India and I believe it is not the same everywhere.

Here ATMs typically have daily withdrawal limits.  I believe I can only withdraw $400 daily from an ATM - for larger amounts I need to see the teller inside the bank.

The bank we keep all our money in doesn't operate in the state we are traveling to.  However, we do have two Chase checking accounts (opened solely for the $300 sign-up bonus).   There's a Chase branch 10 minutes away from the dealership.

This is looking like possibly the best route.  Find all my Chase checking info, move money into the Chase account, and be ready to head to the Chase branch and withdraw funds if the dealer won't take my credit card.  This way I'd only have the cash in hand for 10 minutes instead of a few days. The downside of this approach is that it compresses our timeline because the bank closes at 2pm on Saturday - the only day we have available to car shop.  This would ruin our plans for a leisurely breakfast and chilling in the morning, so my husband might not go for it.

First things first, though, I will call the dealer today and just ask them what forms of payment they will accept.  I was a tad reluctant to do this because then he knows upfront that I don't want financing and may therefore be less willing to negotiate price.  (It's a very small dealership, his inventory looks like about 13 cars! so I'm fairly certain he'll connect the dots if someone calls asking about out of state checks and then a few days later a similar sounding lady shows up car shopping.)

Dicey

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #22 on: September 20, 2016, 07:21:11 AM »
First things first, though, I will call the dealer today and just ask them what forms of payment they will accept.  I was a tad reluctant to do this because then he knows upfront that I don't want financing and may therefore be less willing to negotiate price.  (It's a very small dealership, his inventory looks like about 13 cars! so I'm fairly certain he'll connect the dots if someone calls asking about out of state checks and then a few days later a similar sounding lady shows up car shopping.)
Have someone else call, without mentioning any specific type of vehicle.

Fishindude

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #23 on: September 20, 2016, 08:20:18 AM »
All the suggestions to use a bank for various things in the area of purchase are no good, since this is taking place over a weekend.
Most banks that are open Saturday only have a couple employees on hand for cashing checks, etc.   Otherwise a wire transfer would be the way to go.

boarder42

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #24 on: September 20, 2016, 08:30:15 AM »
First things first, though, I will call the dealer today and just ask them what forms of payment they will accept.  I was a tad reluctant to do this because then he knows upfront that I don't want financing and may therefore be less willing to negotiate price.  (It's a very small dealership, his inventory looks like about 13 cars! so I'm fairly certain he'll connect the dots if someone calls asking about out of state checks and then a few days later a similar sounding lady shows up car shopping.)
Have someone else call, without mentioning any specific type of vehicle.

why does everyone think that dealers will more readily negotiate with a finance buyer.  the rates on auto loans are so low ... they use the loan to get people who really cant afford it into a bigger car than they can afford.  normally cash has more negotiating power or even using outside loans that arent the dealers.

frugaliknowit

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #25 on: September 20, 2016, 09:03:10 AM »
If you find a car you like via a dealer, I would offer them a check.  If they won't take it, ask if they will take a check as a deposit, then return later with cash or a money order.

Jack

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #26 on: September 20, 2016, 10:14:44 AM »
why does everyone think that dealers will more readily negotiate with a finance buyer.  the rates on auto loans are so low ... they use the loan to get people who really cant afford it into a bigger car than they can afford.  normally cash has more negotiating power or even using outside loans that arent the dealers.

It depends on the car dealer's strategy. New-car dealers and used-car "buy here, pay here" dealers are very different. Many of the latter make all their money on kickbacks from the (high-interest) financing -- or worse, from repossessing and re-"selling" the same car over and over again. See this John Oliver video.

redbird

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #27 on: September 20, 2016, 10:19:39 AM »
Credit card -- this is the perfect opportunity to get a major rewards card.  If you have to sign up for a new card, make sure you get the number so you can use it before the card arrives.

This won't always work. Car dealers aren't always willing to take credit cards because of the merchant fee ding. I bought a used car about a year ago and the dealer refused to let me use a credit card. It wasn't even a worries of credit problem, as I do have over 800 credit score.

I had just moved and didn't have time to wait for my online bank to mail me a cashier's check as I needed a car immediately (moved from overseas, had no car, and was using a rental), so what I did was signed up for financing and then immediately paid it off. No interest costs. You have to make sure to look at what the financing terms are if you take this route.

boarder42

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #28 on: September 21, 2016, 02:35:23 PM »
why does everyone think that dealers will more readily negotiate with a finance buyer.  the rates on auto loans are so low ... they use the loan to get people who really cant afford it into a bigger car than they can afford.  normally cash has more negotiating power or even using outside loans that arent the dealers.

It depends on the car dealer's strategy. New-car dealers and used-car "buy here, pay here" dealers are very different. Many of the latter make all their money on kickbacks from the (high-interest) financing -- or worse, from repossessing and re-"selling" the same car over and over again. See this John Oliver video.

i mean even if the dealer was negotiating from a stance that you were going to finance and then you came up with cash nothing was written or signed prior to agreement on price ... so when that comes up someone likely looking to churn cars and repossess will not be selling at the same price

SomedayStache

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #29 on: September 29, 2016, 08:25:06 AM »
UPDATE: I called ahead of time and asked what forms of payment are accepted.  After a long pause (maybe this is the first time he's been asked this?) I was told cashier's check.  I inquired about an out-of-state personal check and he okayed that as well.  So I just took my checkbook and wrote a check. 

This guy turned out to be a very small-time dealer just getting set up and supposedly didn't have any facility to take credit cards at all.  Based on the difficulty he had with his website and wireless printer(!) I believe him.

ketchup

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Re: How to pay for a used car when we have the cash in our bank account?
« Reply #30 on: September 29, 2016, 08:29:59 AM »
This guy turned out to be a very small-time dealer just getting set up and supposedly didn't have any facility to take credit cards at all.  Based on the difficulty he had with his website and wireless printer(!) I believe him.
Oof!  Hopefully he'll soon learn business enough to never trust anything wireless, or any printer, nevermind a wireless printer.