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      03-04-2006, 05:31 PM   #1
uci2ci
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Financing question: under-the-table cashflow...Financing possible?

What are the chances of a student getting financed by BMW if they get paid mostly under-the-table, but have excellent credit (780) and willing to put more than 50% down.
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      03-04-2006, 05:32 PM   #2
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I dont think you'll have any problem gettin the loan
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      03-04-2006, 05:48 PM   #3
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Quote:
Originally Posted by uci2ci
What are the chances of a student getting financed by BMW if they get paid mostly under-the-table, but have excellent credit (780) and willing to put more than 50% down.
what exactly are you hoping to save on by going "under the table" ? state sales tax?
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      03-04-2006, 06:01 PM   #4
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I think he means he is a student that has a job which pays him off the books. So he is asking if the lack of an official paycheck will hinder him in getting BMW financing.
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      03-04-2006, 06:03 PM   #5
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If you have a 780 credit score and can at least show the income to pay the payments with a little left over, they are probably going to give you the financing. If you put 50% down, your payments won't be that much so you wouldn't need much more than a little income to show you can make the payments.
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      03-04-2006, 06:57 PM   #6
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Uhm, under the table? Did you know that anything $10,000 down and over, the dealer is required by law to report you to the IRS. If I were you, I'd talk to the dealer and see if you can first put $7k or 8k deposit, then like $9,900 down at time of purchase and leave a couple weeks between both transactions. That might keep "Uncle Sam" away from you for a while. And yes I think that you will be able to get a loan, but if you have less than 7 yrs credit history, your rates will be pretty high, regardless of credit rating. Good luck.
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      03-04-2006, 07:03 PM   #7
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Quote:
Originally Posted by hotsand5
Uhm, under the table? Did you know that anything $10,000 down and over, the dealer is required by law to report you to the IRS. If I were you, I'd talk to the dealer and see if you can first put $7k or 8k deposit, then like $9,900 down at time of purchase and leave a couple weeks between both transactions. That might keep "Uncle Sam" away from you for a while. And yes I think that you will be able to get a loan, but if you have less than 7 yrs credit history, your rates will be pretty high, regardless of credit rating. Good luck.
good advice. yea be careful, because if the government comes, and audits you and you get paid under the table and dont pay your taxes or file taxes, you are fucked. Real bad. Be very very very careful, if I were you i'd try to get financed with little money down and just make the payments if approved.
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      03-04-2006, 07:42 PM   #8
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Quote:
Originally Posted by hotsand5
Uhm, under the table? Did you know that anything $10,000 down and over, the dealer is required by law to report you to the IRS. If I were you, I'd talk to the dealer and see if you can first put $7k or 8k deposit, then like $9,900 down at time of purchase and leave a couple weeks between both transactions. That might keep "Uncle Sam" away from you for a while. And yes I think that you will be able to get a loan, but if you have less than 7 yrs credit history, your rates will be pretty high, regardless of credit rating. Good luck.

He's dead on. Either follow this advice or get someone to co-sign for you.
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      03-04-2006, 08:05 PM   #9
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Actually, making two payments under $10,000 for the purpose of avoiding the IRS reporting requirements is called "structuring" and it is money laundering. You can get an automatic 10 years in federal prison for doing it. I would definitely not recommend doing it.

The report the dealership is required to make is called a Currency Transaction Report ("CTR"). It basically tells the IRS that you conducted a cash transaction of $10,000 or more. It doesn't necessarily mean they are going to investigate you. It is quite possible they will check your tax return to see if it raises red flags with you paying more than $10,000 in cash for a vehicle, however. If the money is already in a bank account rather than in cash and you write a check to the dealer, the CTR is not required to be filed. That is because it isn't a currency transaction since a check drawn on a US Bank isn't considered currency.

The federal statute covering money laundering is 18 USC 1956 and 18 USC 1957.
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Last edited by sdorn; 03-04-2006 at 09:38 PM.
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      03-04-2006, 08:08 PM   #10
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why dont you try to just get a normal loan first, by normal i mean, but down 5-6 or even 9k down, and just finance the rest. im not SURE this will work because you mostly get paid under the table. but with a credit score like that, they might not even care how much or how you get paid.
just an idea
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      03-04-2006, 08:08 PM   #11
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Uhhhh wow, how much money are you getting paid that you have to get it under the table? Or rather, what are you doing to get paid that way in cash?

Sounds shady dude.
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      03-04-2006, 09:06 PM   #12
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kid is supplying college students with crack cocaine, either that or he is working at his uncles dirty chinese restaurant and getting paid under the table. j/k
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      03-04-2006, 09:14 PM   #13
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So much misinformation in this thread. Its obvious the people giving the advice know just enough to be dangerous but not enough to be helpful. Instead of wasting my time fixing all the legal and accounting mistakes posted so far I will simply tell you to be careful with any large transaction if you havenít claimed this money in the past (no matter its source or current location). Check with a CPA or tax attorney of you are concerned. Depending on the amount and how the money was obtained you want to be careful as to how it is spent. Safest bet in these circumstances is always lease.
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      03-04-2006, 09:41 PM   #14
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Quote:
Originally Posted by 3aficionado
So much misinformation in this thread. Its obvious the people giving the advice know just enough to be dangerous but not enough to be helpful. Instead of wasting my time fixing all the legal and accounting mistakes posted so far I will simply tell you to be careful with any large transaction if you havenít claimed this money in the past (no matter its source or current location). Check with a CPA or tax attorney of you are concerned. Depending on the amount and how the money was obtained you want to be careful as to how it is spent. Safest bet in these circumstances is always lease.
heh, /agree

i just reread the original poster, and he said he gets paid under the table... I thought he was trying to buy the car under the table.

If you get paid under the table and want to make a large purchase... um... good luck.
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      03-04-2006, 11:23 PM   #15
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i got financing. im 20 and i put a little under 50% on the down payment and had good credit. and i had put in about 10K for where it asks about annual income. my CA was worried that i wouldnt get approved, but i did.
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      03-05-2006, 12:51 AM   #16
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thanks for all your replys. the money is not ill gotten. most of the money i got is "pass me downs" from my parents and my uncle, which i've been gathering from a long time. i've gathered about 20 grand. half of that is from working (govtec is right about the restautrant, just not chinese ) i guess i could wait till i get a legit job. I would get someone to co-sign but everyone i know, including my parents got less than perfect credit. i've got the best credit out of all of them
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      03-05-2006, 12:56 AM   #17
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If your parents gave you the money, then there is no issue. Each one of your parents can give you a gift of up to $11k per year (that was the number as of 2005, it might be higher now) for a total of $22k per year with no tax consequences. You can give it to the car dealer in cash or by check, and even if the IRS asks where it came from (which they probably won't) you can just say your parents gave it to you. No big deal.

I would bet that with a 50% downpayment and any job where you can show you make enough to make the payments, you are going to be just fine.
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Last edited by sdorn; 03-05-2006 at 05:01 PM.
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      03-05-2006, 01:16 AM   #18
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would they go probing my parents in that case?
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      03-05-2006, 01:18 AM   #19
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Quote:
Originally Posted by uci2ci
would they go probing my parents in that case?
That is possible.
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      03-05-2006, 04:57 PM   #20
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For 2006, the maximum gift allowance is now $12k from one single person. So your mom could give you $12k, your dad 12k, gramma, 12k , etc. etc. and not pay any taxes on that money. Then if you have a spouse, they can give the same to her as well, and you still would not have to pay any taxes for the combined gifts between the both of you. But like 3aficionado says, there is a lot of misinformation, some right, some close to being right, and others just way off. The best is to talk to a CPA for correct advice; however, I think that as long as we are close to being right, it gives us an ideal of what we can expect.
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