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Why doesn't Tesla Motors accept cash payment?

Discussion in 'Model 3: Ordering, Production, Delivery' started by anticitizen13.7, Apr 15, 2016.

  1. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    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.
     
  2. Sm4llz

    Sm4llz Member

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    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.
     
  3. Zroiron

    Zroiron Poodle Pack Leader

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    Maybe fear of money laundering??
     
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  4. Adm

    Adm Active Member

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    It's not just robbery, but also fraud by an employee that could worry Tesla Management.
     
  5. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    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.
     
  6. cpa

    cpa Member

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    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.
     
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  7. wdolson

    wdolson Active Member

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    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.
     
  8. Scannerman

    Scannerman Member

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

    Scannerman
     
  9. Chris TX

    Chris TX Active Member

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    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. ;)
     
  10. nexsuperne101

    nexsuperne101 Member

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    I will have to pay 40K cash into the bank then for my AWD version :)
     
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  11. freds

    freds Member

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    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.
     
  12. Tiberius

    Tiberius Member

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    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.
     
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  13. nativewolf

    nativewolf Member

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    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.
     
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  14. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

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

    Ampster Member

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    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.
     
  16. James Anders

    James Anders Member

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

    Krugerrand Active Member

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    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.
     
  18. Ampster

    Ampster Member

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

    Krugerrand Active Member

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    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.
     
  20. Tiberius

    Tiberius Member

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    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.
     
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