Large cash payment for a car - legit?
Discussion
We are looking to sell one of our company cars this weekend and a chap form up north wants to come and pay cash. Its circa £40k so Im wondering if there are any issues or ramifications with this? I have suggested he places the cash straight into our business account but being a Saturday collection I'm not sure if any banks in central London are open.
Im also slightly edgy about the security aspect. Anyone has any recent experiences or advise they can offer?
Im also slightly edgy about the security aspect. Anyone has any recent experiences or advise they can offer?
If it were me, I would feel uncomfortable about that amount of cash. There should be no reason why someone drives a distance with 40k on the passenger seat with all of the tools available to us nowadays.
It may be totally honest, but rings all sorts of Money Laundering bells.
I would swerve personally.
It may be totally honest, but rings all sorts of Money Laundering bells.
I would swerve personally.
Don't quote me on this but the limit for paying cash for a car at a dealership was £7k the last time I checked. I'm not sure how it works for private individuals buying cars from other private individuals but I would far rather have a bank transfer than cash if selling a car for more than £5k or so anyway.
JiggyJaggy said:
We are looking to sell one of our company cars this weekend and a chap form up north wants to come and pay cash. Its circa £40k so Im wondering if there are any issues or ramifications with this? I have suggested he places the cash straight into our business account but being a Saturday collection I'm not sure if any banks in central London are open.
Im also slightly edgy about the security aspect. Anyone has any recent experiences or advise they can offer?
Probably the proceeds of undeclared income or other villainy. Though not necessarily.Im also slightly edgy about the security aspect. Anyone has any recent experiences or advise they can offer?
You'll also be in possession of £40k cash. I've known people robbed in similar circumstances for less.
Personally I would want him to pay it into a bank and do a transfer.
Some obvious risks:
- that some or all of it could be forged
- that it could be part of a laundering operation
- that some other party could be lined up to relieve you of the cash afterwards, what with the banks being closed.
Either way, I'm sure your company does not want to be tainted. I would dodge it and say you've been informed by higher authorities in the company that for policy reasons you're required to take anything over a certain nominal threshold limit by electronic transfer, debit card, etc.
- that some or all of it could be forged
- that it could be part of a laundering operation
- that some other party could be lined up to relieve you of the cash afterwards, what with the banks being closed.
Either way, I'm sure your company does not want to be tainted. I would dodge it and say you've been informed by higher authorities in the company that for policy reasons you're required to take anything over a certain nominal threshold limit by electronic transfer, debit card, etc.
ModernAndy said:
Don't quote me on this but the limit for paying cash for a car at a dealership was £7k the last time I checked. I'm not sure how it works for private individuals buying cars from other private individuals but I would far rather have a bank transfer than cash if selling a car for more than £5k or so anyway.
The threshold for accepting cash payments without conducting due diligence on source of funding under the relevant legislation (3rd EU Directive on money laundering) is currently 15000 Euro or around £10.5k. The threshold is going to drop when the 4th EU Directive kicks in to 10000 Euro.That alone would be good enough reason not to accept a £40k cash payment on a car sale to my mind.
I sold a car for 7.5k cash a few years back and had a hell of a job paying it into the bank - no local banks would take it (not my bank admittedly) in the end the Post Office took it. The old dears raised a few eyebrows when I started shovelling the notes through the window.
40k in cash - well dodgy IMHO.
My sale was to a taxi driver - he had cash bloody everywhere in his house.
40k in cash - well dodgy IMHO.
My sale was to a taxi driver - he had cash bloody everywhere in his house.
HerrSchnell said:
ModernAndy said:
Don't quote me on this but the limit for paying cash for a car at a dealership was £7k the last time I checked. I'm not sure how it works for private individuals buying cars from other private individuals but I would far rather have a bank transfer than cash if selling a car for more than £5k or so anyway.
The threshold for accepting cash payments without conducting due diligence on source of funding under the relevant legislation (3rd EU Directive on money laundering) is currently 15000 Euro or around £10.5k. The threshold is going to drop when the 4th EU Directive kicks in to 10000 Euro.That alone would be good enough reason not to accept a £40k cash payment on a car sale to my mind.
Barkychoc said:
I sold a car for 7.5k cash a few years back and had a hell of a job paying it into the bank - no local banks would take it (not my bank admittedly) in the end the Post Office took it. The old dears raised a few eyebrows when I started shovelling the notes through the window.
Really? The last car I sold, I rocked up to the bank 1 minute before closing time and paid over the counter with the buyer present. The guy didn't bat an eye lid (although may have secretly hated me). P.s. I hate cash and refused to handle it. No way would I take £40k.
I would imagine the travelling community pay for their cars cash.
I've taken 27k cash for a car before, never had any problem putting it in the bank at all. Having said that, that was back when the only bank transfer options were BACS (4 days) or CHAPS (some time that day at a cost). I'd probably want it to go faster payment now such an option is available though.
I've taken 27k cash for a car before, never had any problem putting it in the bank at all. Having said that, that was back when the only bank transfer options were BACS (4 days) or CHAPS (some time that day at a cost). I'd probably want it to go faster payment now such an option is available though.
The only time I've done it was where I agreed with the buyer that the deal is done and the key is handed over at the bank when the cashier counts it in front of us both and accepts it.
Everything went smoothly.
The only thing that would ring an alarm bell in my mind are the money laundering regs. I know nothing about them as never needed to consider them, but it's worth a read, especially if you are taking cash in the course of a business:
https://www.gov.uk/guidance/money-laundering-regul...
Everything went smoothly.
The only thing that would ring an alarm bell in my mind are the money laundering regs. I know nothing about them as never needed to consider them, but it's worth a read, especially if you are taking cash in the course of a business:
https://www.gov.uk/guidance/money-laundering-regul...
We sold a car for £20k cash not that long ago. Was a vintage car to a collector, and at least with cash the transaction can't be clawed back from the bank end.
And when we work for the travelling community we always get cash payments rather than bank transfer as many travellers don't use banks for literacy or other reasons. For security both ways if it's a big sum we meet somewhere very public, ideally a police station.
And when we work for the travelling community we always get cash payments rather than bank transfer as many travellers don't use banks for literacy or other reasons. For security both ways if it's a big sum we meet somewhere very public, ideally a police station.
Tom_C76 said:
We sold a car for £20k cash not that long ago. Was a vintage car to a collector, and at least with cash the transaction can't be clawed back from the bank end.
And when we work for the travelling community we always get cash payments rather than bank transfer as many travellers don't use banks for literacy or other reasons. For security both ways if it's a big sum we meet somewhere very public, ideally a police station.
Faster payment can't be clawed back.And when we work for the travelling community we always get cash payments rather than bank transfer as many travellers don't use banks for literacy or other reasons. For security both ways if it's a big sum we meet somewhere very public, ideally a police station.
Only flaw with that arrangement is what happens when you leave the police station?
Tom_C76 said:
We sold a car for £20k cash not that long ago. Was a vintage car to a collector, and at least with cash the transaction can't be clawed back from the bank end.
And when we work for the travelling community we always get cash payments rather than bank transfer as many travellers don't use banks for literacy or other reasons. For security both ways if it's a big sum we meet somewhere very public, ideally a police station.
Hmmmmm... I would have thought that if the bank accepted the notes and subsequently discovered that they were good forgeries or marked notes to be given up for some reason they'd fairly swiftly debit your account. Banks are a bit like that.And when we work for the travelling community we always get cash payments rather than bank transfer as many travellers don't use banks for literacy or other reasons. For security both ways if it's a big sum we meet somewhere very public, ideally a police station.
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