Why doesn't Tesla Motors accept cash payment?

[anticitizen13.7]

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

Final payment

You may pay the balance due via electronic bank account debit or wire transfer prior to taking delivery. To access the payment module, sign in to your Tesla account, and press on the button “Make a Payment.” You can select “Electronic Bank Account Debit” and then enter your information for Tesla to debit the balance from your bank account. Otherwise, you may choose “Wire Transfer” and we will generate instructions in your Tesla account on how to wire the balance to us.

Alternate payment methods include a certified check or a check from a financing bank or credit union made at the time of delivery. Please make your check out to “Tesla Motors, Inc.” Credit cards are not accepted for final payment. Any balance due must be paid in full before you can take delivery of your vehicle.

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.

 

[Sm4llz]

I know that when the company I work for took cash payments it created a lot of headache around having to keep an accurate paper trial and keep appropriate receipts. Your point about theft is also accurate. We had a lot of cash at our offices and had to have armored cars scheduled to pick up the cash. I think it just introduces more risk and additional work than it's worth.

Now I do wish that when I put the deposit on my model s, I could have made a payment maxing out my credit card. Get the points, then use my financing to pay off the card.

 

[Zroiron]

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.

Maybe fear of money laundering??

 

[Adm]

It's not just robbery, but also fraud by an employee that could worry Tesla Management.

 

[anticitizen13.7]

I know that when the company I work for took cash payments it created a lot of headache around having to keep an accurate paper trial and keep appropriate receipts. Your point about theft is also accurate. We had a lot of cash at our offices and had to have armored cars scheduled to pick up the cash. I think it just introduces more risk and additional work than it's worth.

Now I do wish that when I put the deposit on my model s, I could have made a payment maxing out my credit card. Get the points, then use my financing to pay off the card.

Yeah, I hadn't considered the administrative headaches. I can imagine some unfortunately Delivery Specialist bogged down counting stacks of bills while other customers and deliveries were put on hold. Elon is the kind of guy who always tries to use time in the most optimum way, and counting cash is a waste of time.

Cash may not make sense in the digital age, but what about PayPal? That's another payment method I found to be conspicuously absent. Maybe the transaction fees are too high, LOL.

 

[cpa]

Not to mention the reporting by the bank to the Treasury that Tesla Motors deposited >$10,000 in currency.

Not to mention that Tesla will have to have imprest funds at all the delivery locations to give the cash-paying customers $27.38 in change on a $125,000 purchase. And will have to reconcile and replenish these imprest funds regularly.

Not to mention the additional security and internal control procedures needed for purchases when the banks are closed.

If a buyer has that much cash (from whatever sources) he can go to any bank and buy a cashier's check.

 

[wdolson]

I agree with cpa, because of a couple of laws in the US all sorts of flags go up when anyone tries to do a bank transaction with $10,000 or more in cash and the bank is obligated to report that transaction to the feds. These laws were initially put there as part of the war on drugs, but were strengthened by the Patriot Act.

I don't think any car dealer takes cash for car purchases, though I'm sure you can still use cash in the parts department at most dealers for small purchases.

I believe the feds specifically cracked down on car dealers taking cash in the 90s when stories surfaced of drug dealers going to luxury car dealerships with paper bags full of cash and buying brand new cars. These stories may have been urban legends, but it wouldn't be the first time laws were passed based on stories that had little or no basis in fact.

 

[Scannerman]

Yeah, I hadn't considered the administrative headaches. I can imagine some unfortunately Delivery Specialist bogged down counting stacks of bills while other customers and deliveries were put on hold. Elon is the kind of guy who always tries to use time in the most optimum way, and counting cash is a waste of time.

Cash may not make sense in the digital age, but what about PayPal? That's another payment method I found to be conspicuously absent. Maybe the transaction fees are too high, LOL.

It is worth mentioning, that Elon Musk, founded Pay Pay, and went on to sell it for a handsome amount.

Scannerman

 

[Chris TX]

Yeah, I hadn't considered the administrative headaches. I can imagine some unfortunately Delivery Specialist bogged down counting stacks of bills while other customers and deliveries were put on hold. Elon is the kind of guy who always tries to use time in the most optimum way, and counting cash is a waste of time.

Cash may not make sense in the digital age, but what about PayPal? That's another payment method I found to be conspicuously absent. Maybe the transaction fees are too high, LOL.

I used my PayPal Mastercard to place my deposit for my Model S. I came close to paying the deposit for my Model 3 with my Bitcoin debit card, but the exchange rate was moving upward.

 

[nexsuperne101]

I will have to pay 40K cash into the bank then for my AWD version

 

[freds]

Yeah, I hadn't considered the administrative headaches. I can imagine some unfortunately Delivery Specialist bogged down counting stacks of bills while other customers and deliveries were put on hold.

A friend of mine flew to Utah to buy a truck with cash which threw the dealer for a loop. It ended up with a girl using a testing pen on each 100.00 bill to make sure it wasn't counterfeit, needless to say it was over 400 bills.

 

[Tiberius]

It's 2016... the only reason to use cash on a large purchase is to show off. Why stop by the bank first when swiping a card is so convenient?

Besides all the headaches mentioned, Tesla was made popular buy the guy who invented PayPal, so it's really no surprise.

There's simply no pros and too many cons.

 

[nativewolf]

It's 2016... the only reason to use cash on a large purchase is to show off. Why stop by the bank first when swiping a card is so convenient?

Besides all the headaches mentioned, Tesla was made popular buy the guy who invented PayPal, so it's really no surprise.

There's simply no pros and too many cons.

Could be you are in the pot business in CO and can't get a banking account. Or, you are a scammer, or a drug dealer; or most likely you are poor and don' have access to banking services. Trust me, any car dealer will gladly take a bag full of cash for a car. That tesla won't is only mildly surprising. However, I assume they just did not put the infrastructure in place to do so. Many low income people are frozen out of the banking system/credit markets so those $5k used cars are often straight cash buys. Not even surprising to see $15k purchases being straight cash for certain models. So, the local dealers have the means and need to handle cash purchases and Tesla didn't start there or evolve into that spot. Not many people drop $100k in cash on a car.

 

[ItsNotAboutTheMoney]

Because it would add unnecessary cost and complexity to accept cash.
It isn't a used-car dealership.

 

[Ampster]

Cash is a security risk and a transaction expense. Why would a seller want to increase the risk of a robbery or harm to one of its employees? The risk extends all the way to the bank unless they use an armored car service. The armored service car costs money and advertises that there is cash at the location. An ACH or a check converted to an ACH is instataneous and only has to be touched once. Just think of the time to count $100,000.

 

[James Anders]

No cash register? Tesla won't even accept cash for the reservation fee.

 

[Krugerrand]

Cash is apparently not accepted at the Tesla Store. Why is that?

Why, indeed! Especially when the horse just said 'Cash is king'.

On a serious note, I agree with others...there would be a multitude of headaches created by accepting cash.

 

[Ampster]

W

I will have to pay 40K cash into the bank then for my AWD version

While you are braggng about all the cash you have on hand, do you mind telling the world where you keep it? LOL

 

[Krugerrand]

It's 2016... the only reason to use cash on a large purchase is to show off. Why stop by the bank first when swiping a card is so convenient?

Debit cards are dollar limited, credit cards are dollar limited, and some people don't have a checking account to write that big check. Some people don't even have bank accounts because they don't trust banks (that shouldn't come as a surprise), or they don't want to pay banking fees. 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.

 

[Tiberius]

Debit cards are dollar limited, credit cards are dollar limited, and some people don't have a checking account to write that big check. Some people don't even have bank accounts because they don't trust banks (that shouldn't come as a surprise), or they don't want to pay banking fees. 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.

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.