Cash is No Good No More!

[308]

Went to my local bank a few months ago to grab $4k to buy a motorcycle. They were emptying teller drawers just to get it together for me "just this once" and told me they need 2 days notice for anything over $2k in the future. That was a Friday morning. Ridiculous.
Just another reason to keep some cash on hand.

Sounds like the wrong bank. OnpointCu said give me a minute, went to the back and returned with $6000 cash. Said thanks and I walked out.

 

[notazombie]

To be fair, with only 890 people in town, we're probably lucky to have a bank at all. Still, I would have expected them to have a little cash on hand on a Friday.

 

[Alexx1401]

Went to my local bank a few months ago to grab $4k to buy a motorcycle. They were emptying teller drawers just to get it together for me "just this once" and told me they need 2 days notice for anything over $2k in the future. That was a Friday morning. Ridiculous.
Just another reason to keep some cash on hand.

It's insurance cost. The days of most banks having stacks of cash in a safe are long gone. They don't need to. If they do its what leads to guys with masks and guns coming in to steal it. Then someone has to pay it back. If someone is planing on a large purchase with cash, like a car from private party, best to get it ready ahead of time for just this reason. If you can't then better off trying one of the main large branches. So much has gone electronic now every little corner bank has no reason to risk keeping lots of cash on hand.

 

[jbett98]

I buy low mileage, original owner vehicles from estate sales.
Great prices and I know why the car is being sold, unlike most Craigslist ads stating some made up BS.

 

[The Heretic]

It's insurance cost. The days of most banks having stacks of cash in a safe are long gone. They don't need to. If they do its what leads to guys with masks and guns coming in to steal it. Then someone has to pay it back. If someone is planing on a large purchase with cash, like a car from private party, best to get it ready ahead of time for just this reason. If you can't then better off trying one of the main large branches. So much has gone electronic now every little corner bank has no reason to risk keeping lots of cash on hand.

Certainly.

I try to keep at least $500 on hand for weekend gun purchases - most ATM withdrawals are limited to $500 and most gun purchases are under $1K so that usually works. Last weekend I was lucky; bought a lever action for $450 on Saturday, got home, checked the classifieds here and someone had a PS90 for $1K and the CU was closed by then (they stay open till 2PM on Saturday). I had enough left over to drop by the ATM on Sunday to get the rest and buy the PS90.

Sometimes timing is everything with getting a good deal on something so having enough cash on hand helps a lot. But anything over $1K I almost always need some notice and an intervening weekday where I can get to the CU while they are open. My CU has no 'large branches' - they all have limits on cash on hand - not sure about limits on the new video teller since they have hundreds in there. Most private sellers don't like checks - even bank checks.

I am going to put some cash in an online bank to get better interest (my CU pays almost 2% on checking, but limits that to $25K) and to have another source of cash from an ATM.

 

[Alexx1401]

Certainly.

I try to keep at least $500 on hand for weekend gun purchases - most ATM withdrawals are limited to $500 and most gun purchases are under $1K so that usually works. Last weekend I was lucky; bought a lever action for $450 on Saturday, got home, checked the classifieds here and someone had a PS90 for $1K and the CU was closed by then (they stay open till 2PM on Saturday). I had enough left over to drop by the ATM on Sunday to get the rest and buy the PS90.

Sometimes timing is everything with getting a good deal on something so having enough cash on hand helps a lot. But anything over $1K I almost always need some notice and an intervening weekday where I can get to the CU while they are open. My CU has no 'large branches' - they all have limits on cash on hand - not sure about limits on the new video teller since they have hundreds in there. Most private sellers don't like checks - even bank checks.

I am going to put some cash in an online bank to get better interest (my CU pays almost 2% on checking, but limits that to $25K) and to have another source of cash from an ATM.

We keep a few K on hand for "needs" that may pop up.Been a long time since I needed it now since they changed the laws sadly. I know I never even thought about going to buy anything from a private party with a check. All the years of selling stuff can only think of one time someone showed up at my place with check book in hand. He did seem quite put out when I said no. I did offer to hold the gun, tell anyone who called that it was pending, till next day. He did show next day with cash, still looking butt hurt that I said no to the check. I mean really? Some guy I never met and I am supposed to take a personal check? No thanks. I would never expect someone to take one from me who did not know me either.

 

[The Heretic]

In most states, AFAIK, the law protects buyers and sellers when paying with a check for a titled vehicle as it is considered fraud if the check bounces or a dealership doesn't eventually provide a title (still waiting on the title for the car I bought just after Thanksgiving) and the dealership can lose their license if they don't eventually provide the title.

Even a bank check can be faked or forged or "washed" - so I only use checks for large amounts with retailers, and then, only bank checks. I don't have a check book as I only need to provide a check maybe once a quarter - if that (usually for taxes, or something like that where I am sending the check in the mail).

 

[Alexx1401]

In most states, AFAIK, the law protects buyers and sellers when paying with a check for a titled vehicle as it is considered fraud if the check bounces or a dealership doesn't eventually provide a title (still waiting on the title for the car I bought just after Thanksgiving) and the dealership can lose their license if they don't eventually provide the title.

Even a bank check can be faked or forged or "washed" - so I only use checks for large amounts with retailers, and then, only bank checks. I don't have a check book as I only need to provide a check maybe once a quarter - if that (usually for taxes, or something like that where I am sending the check in the mail).

Yep now days its far easier to fake checks. Even when that was the not as easy as now I did not think about it. Last time I sold some stuff on Craigs I had 2 try that with me. I will send you a check, then send someone to get the item, sight unseen. Sure. When I told the one guy it would take weeks to clear a check he tried to tell me took 24 hours. I said great, send your guy to get the item with cash in hand. That was of course last I heard from him

 

[The Heretic]

Yep now days its far easier to fake checks. Even when that was the not as easy as now I did not think about it. Last time I sold some stuff on Craigs I had 2 try that with me. I will send you a check, then send someone to get the item, sight unseen. Sure. When I told the one guy it would take weeks to clear a check he tried to tell me took 24 hours. I said great, send your guy to get the item with cash in hand. That was of course last I heard from him

They usually are not interested in the item when they are sending someone else. They usually want the check to be an amount where you give them cash back. Since the check isn't worth the paper it is printed on...

But most people today know about that scam. But there are just enough people who do fall for it to make it worth the try.

 

[slimmer13]

I had a buddy that walked into a dealership with $21k cash. He offered full asking price on a rig and they said no. Sent him home.

 

[ScottRi]

I do the deal with the financing and I make about 5 payments then pay it off. Keeps my credit score very high and I get all the incentives. Just make sure there is no pre payment penalty.

 

[The Heretic]

I had a buddy that walked into a dealership with $21k cash. He offered full asking price on a rig and they said no. Sent him home.

Cash cash or check cash?

Some retail outfits simply don't want to deal with that much cash on hand due to security, counterfeit bills and to a lesser extent, the fed gov requirements. If you have paper money cash, you can generally go to your bank and get a check for the same amount, so it is kind of silly to be walking around with that kind of paper money. I go make the deal, then I go get the check - unless it is a private deal, and even then, I usually try to set it up so I am not showing up to some stranger with $$$$ in my pocket.

That said, not selling at the advertised price could be easily interpreted as advertising fraud, especially if it was a check and not cash cash.

 

[slimmer13]

Cash cash or check cash?

Some retail outfits simply don't want to deal with that much cash on hand due to security, counterfeit bills and to a lesser extent, the fed gov requirements. If you have paper money cash, you can generally go to your bank and get a check for the same amount, so it is kind of silly to be walking around with that kind of paper money. I go make the deal, then I go get the check - unless it is a private deal, and even then, I usually try to set it up so I am not showing up to some stranger with $$$$ in my pocket.

That said, not selling at the advertised price could be easily interpreted as advertising fraud, especially if it was a check and not cash cash.

Cash. It was a few year old Yukon. The price was $21k. He offered full asking price out the door. No tax. They wouldn't do it. They probably got it at auction for $12,000.

 

[Certaindeaf]

I finally got back home with my new truck from the dealer. I wanted to (and did) pay cash for it..

Smart people pay cash for a used rig not from a dealer.

 

[The Heretic]

Smart people pay cash for a used rig not from a dealer.

It depends on the price, the dealer, the vehicle and the usage.

For business uses it is sometimes smarter to buy a new vehicle.

It is all about context.

 

[Dungannon]

Dealers basically have three ways to make money: price of car, value of trade-in, and financing. After making sure the vendor financing has no pre-payment penalty, I negotiate hardest on the price and trade-in. Then I make two monthly payments before paying off the vehicle. Helps my credit score, since I haven't had a debt since paying off the house in 1993. Usually shop for vehicles that are 2-3 years old as I'm not mechanical minded.

 

[The Heretic]

Dealers basically have three ways to make money: price of car, value of trade-in, and financing. After making sure the vendor financing has no pre-payment penalty, I negotiate hardest on the price and trade-in. Then I make two monthly payments before paying off the vehicle. Helps my credit score, since I haven't had a debt since paying off the house in 1993. Usually shop for vehicles that are 2-3 years old as I'm not mechanical minded.

The best buys are often low mileage 1-4 year old vehicles.

But most anything newer than about 2000 or so is often not something that even mech inclined folks want to be repairing. Dealing with the sensors and electronic systems often requires specialized and expensive tools/equipment that is often specialized for a given make or even model. At the very least you need an OBD reader, and usually a computer with some software.

I was a backyard mech for many years, I was then hired to work in a repair shop for a while, then I was first in my class at MKA school in the USCG and I worked on the boats and other equipment, then I got my AS degree in industrial and ag equipment and worked my way thru college (second degree - EE) working summers in John Deere dealers. I still do simple stuff, I have my own tools and shop.

But I pretty much don't touch my daily driver - I take it in for service and repairs.

 

[PNWguy]

It depends on the price, the dealer, the vehicle and the usage.

For business uses it is sometimes smarter to buy a new vehicle.

It is all about context.

After my divorce and selling our house, I moved up to Idaho and determined that a 4dr 4wd half-ton pickup would fit my needs perfectly.

I discovered that in this area, used truck prices are insane.

Used pickups were around $25k for a 2-3 year old truck with 50k miles, and who knows what kind of abuse they've had. I saw a local dealer advertising brand new Ram 1500 4dr 4wd pickups with the hemi for $29k and 2% financing. Bought one.

Sold it last year for $21k and bought a mint 2005 GMC Yukon since my dog had gotten too old to jump into the pickup anymore and I needed extra seating for grandkids.

The same dealer was now advertising 2018 Ram 1500s for only $27k.

I test drove F150s and Silverados and they were a little nicer than the Rams, but they wouldn't deal at all and were at least $12k more.

 

[olyroller]

When my aunt was in her 40's she dated an Italian asparagus farmer in central CA. He walked around most days in bib overalls, a thermal underwear top in cold weather, or a wife beater tank top in the summer time, a pair of 20 year old Wellington boots, and a Toscanelli cigar in the corner of his mouth. The boots usually had cow manure all over them. Every June or so, after the asparagus harvest, he would go into the local Lincoln dealership and buy a new Lincoln Continental car for cash. One particular day, there was nobody on the sales floor but a rookie salesman who didn't know who "Mr. Leonardini" was. Leonardini poked around the show room for a few minutes while the rookie ignored the "bum" in dirty overalls. Finally, one of the older salesmen came onto the floor and the rookie made some comment about bums wasting his time. The veteran salesman immediately recognized Leonardini and about broke a leg getting to him before he went out the door. Long story short, Leonardini eventually settled on a car and pulled out a roll of $100 bills to pay for the car. Truly, I tell you, don't judge a book by its cover.

In a similar vein, I went with a friend of mine to the Dodge dealer to look at buying a Viper for his wife. My friend was dressed in cargo pants and a sweatshirt. The young salesman just blew him off with a "If you need anything let me know" and walked away. After we left without buying the car, my friend showed me his checkbook with a balance of $125,000 in it.

 

[Pandaz3]

I would wonder if financing would have worked in your favor. My parents recently bought a new car and for whatever reason, by financing and making at least two payments they got a few thousand off. Then paid in full once the discount applied. I don't fully understand how that worked but I'm not a finance guy

I did that with my 2009 Escape I would only go two years on half of it at the time and made about three payments and paid it off. I would not even go back there in 2012, and bought my new F-150 for cash elsewhere, they seemed mad too. Still have both vehicles. In 2014 we bought a new 2013 Lincoln MKX …. Cash, but they wanted to sell that 2013. Great car
We are starting to talk trading that Escape, might be a year more, but we'll find what we want