Why is it ‘desired’ to pay things with cash?Watch
I almost never use a debit card but then I don't use cash either, I put everything on credit cards for the cashback/rewards.
If i'm going to look at something competitive, like a car or a house, then I want the ability to seal the deal on the spot if i wish. One of the last flats I went to view I turned out to be the first viewer in a line of 5, with the other 4 right after me. I liked and wanted it and they said great, fill in an application form and hand it into the office. I then asked how much upfront payment in cash it would take the secure the property right now , and it was £500, they wouldn't have accepted anything but cash in those circumstances and I likely wouldn't have got the house.
Hi guys, my uncle bought a car with cash. I just dint understand why it’s very respected to pay by cash as the same thing could be done by card. Don’t get me wrong, I’m very happy for my uncle but I just wanted to know what is the difference between the two. Could someone please explain why?
If you pay cash for a car it is yours immediately and you can do what you want with it, even sell it on. With finance agreements there can be clauses about repayments and resale, so if you aren't happy with the car, you're stuck with it for a while.
100% the car dealer will not declare the sale of the car for VAT and corporation tax.
If you pay by debit or credit card, there is a clear record. The business can't avoid paying VAT and corporation tax on that.
You often get a discount when you pay people like builders / car dealers in cash - usually the discount matches the VAT rate! Unfortunately this type of tax fraud is completely rampant and has become accepted practice, people don't see it as tax fraud even though it clearly is.