Can you buy a new car with cash if you have no job. (tax, America)

[armourereric]

The last time I read IRS reporting regulations, they guide stated that travelers checks did not count towards the $10K rule, maybe if you went to the bank and slowly converted your cash to travelers check and then paid with that, you would be OK.

[CSD610]

When I pay cash for our vehicles (technically it is a personal check) all they do is call the bank to verify that the funds are present and once they have verified it is there I walk out with the keys and the paid in full paperwork.

[North Beach Person]

Originally Posted by CSD610

When I pay cash for our vehicles (technically it is a personal check) all they do is call the bank to verify that the funds are present and once they have verified it is there I walk out with the keys and the paid in full paperwork.

Yeah, when the regs say "cash" they mean money, not a check.

[oldtrader]

You can buy a house, a car, expensive jewelry, etc., with a check or credit card and no problem. If you pay with cold hard cash, it is going to be reported to the feds, and you are going to be asked for the source of the cash. Drug dealers, and many other less than honest people buy with cash not checks, and they are looking for people like that.

My wife and I have no credit score, nor are we even listed with the credit sources. We have not used one cent of credit for 30 years. We have no trouble buying anything we want with a debit card or check, including very large purchases. We have a 5 acre property across the county road from the most expensive area of town, and it is a 3,700 sq. ft contemporary executive home, paid for. A Blazer for my wife's every day car, my F150 pickup, and a nearly new For Explorer Limited with everything on it. All Free and Clear of loans. And hundreds of thousands in the bank. We never use credit for anything, so when I say you can buy anything for cash I speak from experience.

[Drover]

Nobody's going to stop you you from buying anything if you're paying with cash. But as others have noted, a transaction of this size could trigger scrutiny from the Treasury Department, and you better be prepared to explain where you got that much cash. So if I were you, I'd finance it and then pay off the loan immediately. Financing in-house also gives you leverage to negotiate the price downward because they can make up the difference in the commission they get from whatever institution issues the loan. If your lack of verifiable income is a barrier to financing, ask a family member to co-sign.

[Ed_RDNC]

I assume that when the OP was referring to 'cash', they meant writing a check and/or credit card rather than whipping out a stack of Benjamins 6 inches thick.

My last three cars were paid for in 'cash'.
My first car (many years ago) had a five year loan which I paid it off in three but kept on with the monthly payments, only to a separate bank account I set up.
Three years later I got a new car and paid cash, and all along kept on with the payments to "the bank of me".
I've since bought two more cars the same way, each spaced out 4+ years. This fiscal self-discipline suggested to me by my dad back when I was in school has saved me from paying a HUGE amount of loan interest!

The dealerships are not worried about my checks bouncing, as they can always repossess my car. (It acts as collateral, and also I presume they contacted my bank to confirm the balance).

Also, I've never seen any paperwork about checks over $10k. I assume if needed, the bank and/or the dealership reports them, but I don't know, or care, and my last two cars were paid for with checks way over $10k.

As far as having a job when making a 'cash' purchase, I'm self-employed and the last two cars were bought when I had no full-time job. My checks cleared, and the dealers (and I) were happy.

[dkf747]

Originally Posted by oldtrader

You can buy a house, a car, expensive jewelry, etc., with a check or credit card and no problem. If you pay with cold hard cash, it is going to be reported to the feds, and you are going to be asked for the source of the cash. Drug dealers, and many other less than honest people buy with cash not checks, and they are looking for people like that.

My wife and I have no credit score, nor are we even listed with the credit sources. We have not used one cent of credit for 30 years. We have no trouble buying anything we want with a debit card or check, including very large purchases. We have a 5 acre property across the county road from the most expensive area of town, and it is a 3,700 sq. ft contemporary executive home, paid for. A Blazer for my wife's every day car, my F150 pickup, and a nearly new For Explorer Limited with everything on it. All Free and Clear of loans. And hundreds of thousands in the bank. We never use credit for anything, so when I say you can buy anything for cash I speak from experience.

Has America really gone this low to assume someone with cash is a drug dealer or a whatever?

[Stonepa]

Originally Posted by North Beach Person

Yes. But a cash transfer of over $10K triggers some federal paperwork.

Pay with a check or credit card. Done both and never had any issues or extra paper work.

[mangoarrow]

Personal check is not considered cash, therefore no IRS reporting is required. But cashier's check, money order and traveler's checks are considered cash and would require a IRS Form 8300 to be filled out.

[BECLAZONE]

Originally Posted by johnd393

If it's your only 20000, I wouldn't spend it all on a car.

Yes, a good bit of advice is that. Someone once told me, that you only buy a car, when you can afford to by two.