Selling a car for cash?

[68BabyBlue]

Even merchants are required to report cash payments over $10,000. Pay cash for your new or used car and the dealer will be telling the feds.
They’re making it harder and harder for an honest man to spend his hard earned cash. Only crooks know how to manage large amounts of cash without drawing government attention!

And lawyers. I was one. The best deals on the best cars happen this way. The lesser stuff gets tracked on radar. The real estate agent who sold me my first house told me this 40 years ago.

 

[Cranky]

I do cash or USPS money order. If the person screws up on the MO, it's a federal offense. Still prefer cash though. Stash it away in the safe. Registration prices, at least here, are set by the purchase price. I "bought" my wagon for $1500.00. Am going to help whoever buys my truck with similar "purchase" price. I'm getting nailed for $500 per year on my 20+ year old truck since it was based off the purchase price plus the PRC added more over time.

Last time to take a USPS MO, it was for 450 bucks and it took me 3 times to catch the PO with money to cash it. Screw that mess.

 

[XS22J8R]

Last time to take a USPS MO, it was for 450 bucks and it took me 3 times to catch the PO with money to cash it. Screw that mess.

Last time I got one, it was for only $25 or $30, and my post office couldn’t cash it. I then deposited it at the bank no problem.

 

[Dave6T4]

I worked with a guy that did not like banks. He cashed his paychecks, and put his $$$ in capped iron pipes, which he buried on his property. Whenever he needed to make a "withdrawal" he brought out his metal detector.

 

[68BabyBlue]

I worked with a guy that did not like banks. He cashed his paychecks, and put his $$$ in capped iron pipes, which he buried on his property. Whenever he needed to make a "withdrawal" he brought out his metal detector.

Local trucking company owner did the same, only used a safe. Paid cash for his equipment, never trusted banks. Depression guy. It was a major headache for his heirs after he passed, and had to deal with $17 million in cash.

 

[Cranky]

Last time I got one, it was for only $25 or $30, and my post office couldn’t cash it. I then deposited it at the bank no problem.

My credit union didn't want anything to do with it!

 

[Richard Cranium]

Local trucking company owner did the same, only used a safe. Paid cash for his equipment, never trusted banks. Depression guy. It was a major headache for his heirs after he passed, and had to deal with $17 million in cash.

That's not a terrible problem to have.

 

[Davefinan]

Cash is king, bank wire is next and I always move the deposit to another account directly after it is received. I took a cashiers check for my Charger only because it was issued to me by a national bank where I had a local branch and the seller and I went to when he came to pick up the car to ensure it was legit.

That account you move it to should be in another bank institution because as I said , if it’s in the same bank , they can get their hands on it. That is what the bank manager told me and that is what I did.

 

[Davefinan]

That account you move it to should be in another bank institution because as I said , if it’s in the same bank , they can get their hands on it. That is what the bank manager told me and that is what I did.

I was probably lucky to have such an honest guy for a bank manager.

 

[Jerry Hall]

Local trucking company owner did the same, only used a safe. Paid cash for his equipment, never trusted banks. Depression guy. It was a major headache for his heirs after he passed, and had to deal with $17 million in cash.

I'll take my share in cash and do exactly what the trucking company owner did. Then just spend on purchases.

 

[Jerry Hall]

Local trucking company owner did the same, only used a safe. Paid cash for his equipment, never trusted banks. Depression guy. It was a major headache for his heirs after he passed, and had to deal with $17 million in cash.

I'll take my share in cash and do exactly what the trucking company owner did. Then just spend on purchases

 

[Jerry Hall]

Anything cash10K and over requires you sign a IRS disclosure form. So I make my deposits or withdrawals usually in 9K or random amounts infrequently. Otherwise the safe has my cash. I have been to Colorado, Texas, New York, Minnesota, New Hampshire, California, Tennessee, Kentucky and several other states to purchase cars in cash. Accidents can happen anywhere, but when traveling with cash, I'm the safest driver on the road, and the cash has been well hidden. I ask the sellers for Bill of Sales for anywhere from $100 to $500 dollars and other considerations. No one knows what other considerations could be. If asked make something up. Keeping good amount of cash on hand is good for when great deals come around.

 

[Cojohnso1]

Just set up an account in Bermuda or Cayman Islands associated with LLC located offshore to a dummy holding company in Venezuela. Then transfer monies in $5k increments. 2 per month.

See? No problem at all!

 

[71RRHI]

Just set up an account in Bermuda or Cayman Islands associated with LLC located offshore to a dummy holding company in Venezuela. Then transfer monies in $5k increments. 2 per month.

See? No problem at all!

That won't set off any red flags at all. Haha

 

[dadsbee]

Sad part... every damn post these days someone can't resist to make it political and get toasted to Religon and Politics and I'm not calling anyone out, as I've probably done it myself.

Now that said, where's my duffle bag going tomorrow.....

 

[Davefinan]

Sad part... every damn post these days someone can't resist to make it political and get toasted to Religon and Politics and I'm not calling anyone out, as I've probably done it myself.

Now that said, where's my duffle bag going tomorrow.....

I really don’t see why anyone would feel the urge to inject politics into posts about the automotive hobby, but yes ,it does happen it just feels so out of place to me.

 

[OneWheelPeel]

If the cash deposit amount is large enough, and the IRS becomes aware of it, AND if you're audited, only then, will you need to prove what your "profit" actually was and pay income tax on that.

As of this writing in 2025, the Federal reporting threshold by banks is $10,000, where Verafin (software) is required by federal law to file a Currency Transaction Report (CTR). Verafin also analyzes deposits broken into smaller chunks, across differing accounts, and will kick out a Suspicious Activity Report (SAR) when detected.

Unless you can launder a large amount of cash, one must keep it and spend it as cash, which is getting harder and harder to do in our modern digital age of debit cards. Unless, you buy and use prepaid Visa cards. You can pay your bills with those cards, and save the legitimate cash for better things.

Yep, I just had training on this a week or so ago as I work in a related field. You can go to a completely different bank and they may still see what you deposited at the first bank.

 

[71RRHI]

Okay, let's be honest. If the OP sold one car. He should have nothing to worry about. I'm sure if you sold one car that you bought for 10k then sold for 20k. Unless you did that in a short time, I'm sure you could justify that maintenance, and upgrades you barely broke even or even lost money. The chances of you getting audited off one sale is almost nothing. I would say just deposit the money and don't worry about it

 

[Davefinan]

Okay, let's be honest. If the OP sold one car. He should have nothing to worry about. I'm sure if you sold one car that you bought for 10k then sold for 20k. Unless you did that in a short time, I'm sure you could justify that maintenance, and upgrades you barely broke even or even lost money. The chances of you getting audited off one sale is almost nothing. I would say just deposit the money and don't worry about it

I was pretty much thinking that same thing. I doubt selling one or two cars for a decent profit is going to warrant an audit from the irs. Let’s hear from the folks who this happened to if any.

 

[71RRHI]

The OP has not chimed in since post #1.