Why doesn't Tesla Motors accept cash payment?

[Krugerrand]

Uh huh.... I'm sure there's a way around daily limits besides using cash. But ok sure, Tesla is going to jump through hoops for the .1% you're describing.

Suggest you reread your post and mine again. Then I suggest you read my post #17, which you clearly had to have missed.

I was NOT suggesting (even a teeny, tiny bit) that Tesla should jump through hoops for a rare situation. You clearly said, 'the only reason to use cash on a large purchase is to show off.' I merely offered some valid reasons why a person may pay cash for a large purchase that had nothing to do with showing off. It's important not to paint all people with the same brush that you paint yourself.

Apology accepted.

 

[Tiberius]

Suggest you reread your post and mine again. Then I suggest you read my post #17, which you clearly had to have missed.

I was NOT suggesting (even a teeny, tiny bit) that Tesla should jump through hoops for a rare situation. You clearly said, 'the only reason to use cash on a large purchase is to show off.' I merely offered some valid reasons why a person may pay cash for a large purchase that had nothing to do with showing off. It's important not to paint all people with the same brush that you paint yourself.

Apology accepted.

Ok weirdo, its just a forum post, relax.

I was making the point that there's no real reason why cash should still be used for such a purchase. And I'm right except for the few boring examples you provided that no one else really cares about. I wasn't speaking literally but thanks for the great input.

Take your paint brush and GFY.

 

[roblab]

Model 3 is still a ways off, but looking at how Tesla accepts payment:

Final payment

Cash is apparently not accepted at the Tesla Store. Why is that? The Apple Store will take cash. If I want to pay for my Model 3 with a paper bag full of Benjamins, is there a practical reason not to accept it?

Risk of theft/robbery is the only thing that comes to mind.

Pardon me. I'm afraid I am the one to blame.

About four years before we got our new Signature, Tesla said that you could get in line (no orders, you understand) for the ridiculously low price of only $40,000. Lines would open at 10AM on Monday.

Since I had just sold my RAV4EV, I had the money in the bank on Thursday, so I got out CASH since I didn't want to be trying to work with a bank five minutes after they opened on Monday. I mean, I wanted to be FIRST in line.

Milli put the $40,000, four packs of a hundred, hundred dollar bills, in a very tiny purse (it really takes up hardly any room) and we drove the hundred plus miles to be at the Menlo Park showroom (two Roadsters, one of clay) and walked in the door at 10 AM.

I told the gentleman we wanted to reserve a spot to order a Model S. Milli laid out the four packs of bills. The gentleman said, "What am I supposed to do with this?"

It took him 20 minutes to count it, and then he had to get someone from security, and another from management, to take it to the bank.

It turned out that I was #8 in line after the engineers and founders, so I was not feeling too bad. But by the time it came to order, they were not allowing cash.

 

[Ampster]

Some people don't like technology or trust technology, not having the money in their hands etc... None of these people are making large purchases in cash to show off.

As Tiberius said, that is less than 1% of the population. Also, it is difficult to make and accumulate substantial wealth and not have a banking relationship. In addition, if one made that kind of money why would they want the scrutiny of making a large cash purchase. It is a red flag to the IRS.

 

[Tiberius]

As Tiberius said, that is less than 1% of the population. Also, it is difficult to make and accumulate substantial wealth and not have a banking relationship. In addition, if one made that kind of money why would they want the scrutiny of making a large cash purchase. It is a red flag to the IRS.

Exactly. I wasn't exactly thinking about people who don't trust technology in this discussion about buying a new Tesla lol. Don't mind him, he just wants to be argumentative.

 

[wdolson]

I think it's safe to say anyone buying a Tesla has enough money they need some kind of bank account and likely other financial relationships and they aren't a technophobe who doesn't trust banks. Most of the people that leaves are ones who might have cash are people who are making an illegal income that is cash only and the banking laws are set up to try and catch these people making large purchases with cash. Dennis Hastert (former US Speaker of the House) is in trouble with the law right now because he was taking large amounts of cash out of the bank to pay hush money to someone he molested many years ago.

The marijuana business in Washington, Colorado, Oregon and soon more states do have banking problems, but the state chartered banks and credit unions usually welcome their business. It's the large interstate banks that are paranoid about taking pot money.

Doing a bit of searching, there is a major scam going on with car dealers. Many are telling people that they need to have their credit scores run even if they are paying cash and claiming it is part of the Patriot Act:
Car Dealership Credit Report Scams and the Patriot Act on Edmunds.com

The article does say dealers are required to see a driver's license, and get a social security or tax ID number if a person is paying more than $10,000 in cash. Regulators may have cracked down on the practice because I don't see any articles newer than 2014.

 

[Ampster]

Doing a bit of searching, there is a major scam going on with car dealers. Many are telling people that they need to have their credit scores run even if they are paying cash and claiming it is part of the Patriot Act:

Dealers make money on financing so it is in their interest to try to convert cash buyers into finance transactions. That is another dinosaur in the dealer model that does not benefit the consumer.

 

[Krugerrand]

As Tiberius said, that is less than 1% of the population. Also, it is difficult to make and accumulate substantial wealth and not have a banking relationship. In addition, if one made that kind of money why would they want the scrutiny of making a large cash purchase. It is a red flag to the IRS.

None of that was the point nor relevant to what Tiberius said that I objected to. Again he very specifically said that the only reason to buy a big ticket item with cash was to show off. It is NOT.

 

[Ampster]

None of that was the point nor relevant to what Tiberius said that I objected to. Again he very specifically said that the only reason to buy a big ticket item with cash was to show off. It is NOT.

.......Again he very specifically said that the only reason to buy a big ticket item with cash was to show off. It is NOT.

So what? What matters is that Tesla won't accept cash for a lot of good reasons expressed in this thread and those reasons respond to the Original poster's question.

 

[Tiberius]

None of that was the point nor relevant to what Tiberius said that I objected to. Again he very specifically said that the only reason to buy a big ticket item with cash was to show off. It is NOT.

Again, I wasn't speaking literally... but clearly I touched a nerve. You should take that cash and use it for therapy LOL!!

 

[GBleck]

It's not illegal to make cash payments over $10,000 but it is illegal to devide a larger payment into smaller payments. This covers the loophole on reporting of withdrawal of more then 10,000.

Also credit cards skim a percentage from the transaction on the vendors end. Don't make sense on large purchases. Could work out an agreement with the card processing company but that sounds like a lot of hassle for TM.

 

[ucmndd]

Tesla: I'm sorry, sir. We don't accept cash payments.

Customer: Why not?

Tesla: It's because of where we're from.

Customer: Where are you from?

Tesla: The 21st century.

 

[TaoJones]

Want to pay with cash? Fine. Walk into a bank, deposit it into an account and wire it from your account to wherever. Yes, the transaction will be flagged.

Show up with a stack of cash these days and good luck. Odds are there are mechanisms in place such that a business (Tesla in this case) will have to self-report the acceptance of cash over $10K anyway. It wouldn't surprise me.

You might as well show up with gold bars. Now that actually would impress me. A Tesla showroom that accepted payment in gold. Old school, right there.

 

[Audrey]

The only thing that surprised me about Tesla's transaction system, was the lack of a PayPal option.

 

[wdolson]

Though the Tesla store takes Paypal.

 

[Audrey]

Though the Tesla store takes Paypal.

Ours didn't when we plunked down for our model 3 reservation; it had to be a credit or debit card.

 

[wdolson]

The Tesla store sells swag and stuff like chargers, floor mats, etc. I paid with Paypal when I ordered my HPWC a week ago.

The car ordering and reservation system is separate from the Tesla store.

 

[Audrey]

The Tesla store

Are you referring to a physical store or the online store? I am talking about my experiences in a physical store. I bought a jacket several weeks before placing my model 3 order, in a physical store, and don't recall a PayPal option. But I could have just overlooked it. I am curious about this; thank you for indulging me.

 

[wdolson]

The online store with the link called "Shop" right next to the "My Tesla" at the top of the screen. Sorry for any confusion.

I've only been in one Tesla store for a test drive (it's the only time I've been in that mall), I live on the opposite corner of the Portland metro area from the Portland Tesla storefront and service center. I'm hoping for the Model 3 rollout they put a service center in SW Washington. If they put it in Longview like every other car dealership in the world, that would have the lowest sales tax in Western Washington. It's just as far as Tigard, OR, but a more pleasant drive for me. Vancouver, WA would be most convenient, but I'd settle for Longview.

I see you say your in the PNW, are you in the Seattle area?

 

[Audrey]

I see you say your in the PNW, are you in the Seattle area?

Nope. The physical store I refer to is the same one you test drove with: WA Square Mall.