As a purveyor of cheap, clapped-out automobiles, I frequently involve myself in cash-based transactions when it comes to car buying and selling. Even in the year of our lord 2025, cash is still king in some scenarios, like when you show up to a Home Depot parking lot in Queens to snag a deal on a 216,000-mile Range Rover you found on Facebook Marketplace the night before.
But for normal people buying normal cars, cash is rarely the right answer. While it might feel right to pay cash for big-ticket items, like a down payment for a car, it opens you up to a whole lot of financial risk.
I bring this up because of a recent story out of Houston, Texas, where a man who worked at a now-defunct Kia dealership is accused of taking a bunch of cash for stuff like down payments, taxes, and registration fees from 14 individuals and pocketing the money for himself. From Click2Houston:
Between Aug. 2024 and Feb. 2025, Parker allegedly stole a total of $68,700 from 14 victims who believed they were making cash down payments toward vehicles.
Court documents state Parker told customers he could help fix their bad credit through a Kia “credit repair program.” He allegedly collected cash down payments and later requested more money for taxes, title, and registration fees, promising to complete their vehicle purchases once the process was finalized.
Instead, investigators said Parker stopped responding to the victims, and no vehicles were ever delivered.
Court records show Parker was already out on bond for two similar cases, one for theft and another for unauthorized use of a vehicle, both connected to his employment at the same dealership.
Digging deeper into the court records from the Harris County District Clerk’s office, officials say that Parker allegedly had the victims fill out all of the necessary paperwork before taking their cash, but that “no documentation was found at the dealership” regarding any sales transactions.
“Obviously, it’s a huge red flag if anybody asks for cash and they’re a car dealer or a dealership agent,” Steve Lehto, a Michigan-based consumer protection attorney, told The Autopian. ”Rule number one is always be able to prove that you paid them money. So if by chance you actually found a situation where you needed to pay somebody cash, you’re going to make sure you get something in writing that identifies that you paid it to the dealership, and not to just some guy.”
The only mention of officials finding proof that a transaction occurred was the sole victim who paid via CashApp, rather than with actual cash. It’s unclear from court records whether Parker issued any of his alleged victims a receipt for their payments.
It’s easy to see how something like this could happen. Cash is much easier to pocket than, say, a cashier’s check, which requires the issuer to print a recipient. If the buyers paid this way, they’d be able to specify the dealership as the recipient rather than the salesman they’re dealing with (I don’t know of any brand-name dealer where it’s the salesman dealing with the actual finances; that job belongs to the finance manager).
If you still want to use cash, you can. There are a multitude of reasons why someone wouldn’t have a bank account or would prefer to use real cash. Lehto suggests doing it carefully.
“You can use cash if you want to, but you’re living dangerously, and you’ve got to protect yourself,” he says. “And so what you need to do is get something you’re writing, i.e., a receipt, and it needs to be on some kind of letterhead. And any legitimate card dealership will give you a receipt that is obviously from them.”
Still, it’s best to avoid using cash when you don’t have to. Every other method, whether that’s a cashier’s check, a money order, a certified check, a wire transfer, or even a personal check, leaves more of a paper trail, making it easier for law enforcement to track down your money if things go sideways.
There’s also the credit repair aspect to all of these, which I think is particularly scummy if proven to be true. According to court documents, Parker allegedly told the complainants the money would also help them fix their bad credit, helping them to secure the vehicle they wanted.
“He was allegedly taking advantage of people who were screwed up financially, in that they had bad credit,” Lehto says. “And so somebody who’s got bad credit who goes to a car dealer is expecting some kind of pushback, like, ‘We either can’t sell you a car or you’re going to get horrible financing or you’ve got to put a gigantic amount of money down.’ And when some guy goes, ‘Hey, look, I can help fix your credit, but you’ve got to pay me cash,’ He’s simply taking advantage of them because he knows that’s their weakness.”
Really, this all comes down to consumer knowledge. The Better Business Bureau told me Fredy Kia, the now-defunct dealer at the center of this alleged crime, was not an accredited business with the nonprofit’s Houston division, and carried an “F” rating. A peek at the BBB’s website lists 21 complaints directed towards the business in the past three years, and an average customer review rating of one star out of five. In a statement provided to The Autopian, the BBB outlined some basic, yet effective ways to ensure you don’t get tricked in a similar manner:
We strongly encourage consumers to research any business with the BBB before making a purchase or financial commitment. This includes reviewing the company’s BBB rating, complaint history, licensing, and customer reviews.
When purchasing a vehicle, consumers should also be cautious of any promises related to credit repair services—this is not a standard offering from legitimate car dealerships. If an employee claims to provide credit repair assistance or asks for additional payments outside the dealership’s official process, it should raise an immediate red flag.
Consumers should never provide down payments or personal payments directly to an employee and should not proceed without a signed contract or consultation with the finance office. Always verify with a sales manager what an employee is promising, and request all details in writing before agreeing to any transaction.
You can’t lay all the blame on the people who allegedly got scammed. How were they supposed to know their Kia salesman was already out on bond for two other cases involving that dealership? I certainly wouldn’t have researched that thoroughly. And when a guy in a Kia-branded polo is telling you Kia’s running a program to help fix your credit because you’re in a tough spot, it probably feels pretty genuine—this wasn’t some shady used car lot, it was a whole-ass Kia dealer that had been in business since 2004.
Because Fredy Kia has since been replaced by another Kia dealership run by Bayway Auto Group, a well-known Houston-area dealer conglomerate, I couldn’t get a comment from them. Here’s what Kia, the company, had to say about the matter:
We are deeply troubled by the allegations of theft involving the employee of a former Kia dealership. Kia dealerships are independently owned and operated businesses, and this dealership is no longer part of our network. We expect all Kia dealerships representing our brand to uphold the highest standards of integrity and compliance in their interactions with customers. We take matters like this very seriously and support the criminal justice process in this matter.
The lesson here is, try to avoid using cash when you can. It can leave you open to all types of easily avoidable risks. At worst, your money can simply disappear, leaving you with nothing in return. If you do end up using cash, be sure to do your research first. While you’ll still be taking more of a risk, you’ll also be more informed about your transaction.
Top graphic image: DepositPhotos.com
I already never use cash, because I ain’t got it.
Who walks out of a large cash transaction with no product in hand or a receipt of any kind? And don’t dealerships have actual cashiers to take cash?
OK. But do you really want a paper trail for the authorities? Like for example- you are taxed on the reported buying price of a used car. Are all of you perfectly honest in your reported transaction prices?
What is sales tax? Great to be living in a state that doesn’t try to nickel and dime.
To the meat of the question. If you buy from a dealer – you will have a receipt with the actual price paid. Private party – I do in fact list the actual price paid whether I am seller or buyer on the bill of sale and / or title. Even when I lived in states that charged sales tax on cars.
For private car sales, I use KeySavvy if at all possible, otherwise cashier’s checks.
KeySavvy is a vehicle escrow service that make sure both the seller and buyer are legit, then processes the transaction on behalf of both for about a $200 fee, which can be put on the buyer, seller, or split between both.
I was selling my Leaf private party and the buyer asked to use KeySavvy. I looked into it, it seemed legit across a variety of sources, so I agreed. As the seller, I entered the car’s VIN, the selling price, and a picture of the title. The buyer basically wired the funds to KeySavvy. Once we agreed in person to make the sale, you fill out some forms, electronically sign some things, then I mailed the title to KeySavvy. Once they received the title, they wired the funds to my account. Their website walked through everything step by step and had a very clear dashboard updated with exactly what was going on at that step. Super clear, transparent, and easy.
Gotta use it for the dispo…
I bring cash to the farmer’s market. And that’s about it.
yard and garage sales also.
There’s also the possibility of getting pulled over with the cash. Civil asset forfeiture is a real thing people. Steve has a few good videos about that as well. I will say though, as often as I buy and sell cheap cars I most often prefer to do transactions in cash. Most of my transactions are less than 5k though.
This is the main reason I stress about having large sums of cash on me, because there’s rarely anything you can do about it
I don’t use actual cash folding money for ANYTHING. I rarely even have any one me – the only reason for the past few years is I have a neighbor who has a yard sale or two every winter and sells my crap I don’t want for me. She won’t keep the money, so I end up with a $40-50 in my wallet for eons. EVERY thing goes on my credit cards for the points, and big ticket items are personal or bank check/wire transfer.
When I have bought cars privately, I have just arranged to meet and do the deal right at a bank. Mine or theirs, doesn’t much matter.
Years ago I worked for a small company of about 25-30 people. One of the benefits that was offered to us was a paycheck loan. You could borrow up to one paycheck and have it deducted over the course of 1 year at no interest.
Because this was a small company, the entire accounting “department” was a single person. For years she was having anyone who took out the payday loan write a check to her name each payday for reimbursement. I think it was years later but the guy who owned the business finally got a judgement against her after she had embezzled about $80K.
I know so many old guys that do nearly everything with cash and still do not use banks. They have cash stuffed everywhere. It is like they think real men use cash.
Uh, I avoid cash for any transaction period. Only time I ever have cash is if it’s given as a gift of some sort.
30 or so years ago I said that when McDonalds starts taking credit/debit cash will be dead.
So, you know, in addition to the OTHER risks of dealing with large amounts of cash, such as “being robbed” and “counterfeit”
Just bought my last used car on a CC. May as well get the points bonus.
It is not hard to get a certified check from most banks. PayPal and Venmo offer transaction tracking and consumer protection as well.
Not to pick at nits, but it is actually quite difficult to get a certified check at any institution in the US. A certified check is a check issued by the institution attesting that you have funds in your account sufficient to back it. It differs from a cashier’s check, where the money is withdrawn from your account at time of issuance of said cashier’s check. Wells Fargo, BoA, others will all gladly issue cashier’s check, but none of them will issue a certified check on a personal account.
“Certified check” is language commonly used in scams, which is why I raise this.
In the US, at least, the rise of eACH has obviated the need for any kind of certified checks – any institutionally competent dealership (read: entity with a business license and business process) can determine at point of sale if you have sufficient funds. So for a lot of dealerships, you’re perfectly fine walking in with a personal check, or even a virtual check if the dealership is set up to accept them.
For peer-to-peer / private purchases, as you indicated, Venmo, Paypal, or a wire are all perfectly acceptable.
Was thinking Cashier’s check – where the funding is verified.
Is eACH the name for a business scanning a check and then the transaction is processed as if it is a debit transaction?
Also isn’t Venmo limited to only $5K per transaction?
Considering this was a dealership the requirement for cash should set off major alarm bells. No reputable new car dealer should be asking for cash.
For private party purchases cash may be the only option unless the transaction is between friends that can be trusted to write a good check. Don’t take a check from a relative, they’ll write bad checks for kids birthday presents and never make it good.
Cashier’s checks. When a person gets a cashier’s check from a bank, the money is withdrawn from their account immediately upon issuance, and no bank will issue a check from an account that does not have enough money in it
There are also services such as keysavvy or caramel that will act as a escrow agent to facilitate private party transactions
Unless the check and bank are fake – which you have no way I know.
I will not take a check of any kind for a sale unless they buyer waits for it to clear before the vehicle is handed over.
You can call the issuing bank to verify the cashier’s check’s validity. Only accept a cashier’s check from a well known bank, give them a call to confirm, and problem solved.
Considering their already less-than-stellar reputation, the larger point seems to be “avoid Kia dealerships”.
I don’t think there are too many people who will use personal checks for such things. The advantage of cashier’s checks and debit transactions is that they won’t be subject to the two-week (or however long) hold until they clear.
I bought a used truck at a dealership and wrote a check for the down payment. They called me a couple days later saying they’d lost the check, and asked me if I’d stop payment on it and give them another one. I said I would, and the sound of relief in the persons voice was incredible. So much so, that it left me wondering…
What if I’d said no?
I just bought a new boat trailer from a marine dealer, paid the down payment on a credit card .
When I went back to pick up the trailer after the bunks were adjusted and it cleaned up I paid with a check.
I filled out the check wrong as the dollar amount that I wrote was different as I transposed two numbers so the bank only credited them with the smaller of the two numbers.
The dealership called me and said can we put the 400 dollar balance on a credit card , problem solved .
Of course this is in Northern Wisconsin where life is simpler and people more trusting.
If I lived in a Metropolitan area I wouldn’t pay by check either .
Cash , in this area yes ,in a metro area, no.
Too many dikheads that have ruined it for the rest of us honestly people.
I go to northern WI a few times a year and It is trusting if you do not look to “urban”
All are welcome here in our home except dikheads lol.
I will never forget the first time I watched a ten year old walk up to the bar and get served a beer in some place south of Ashland.
Not really related but I never miss an opportunity to mention:
My wife and I were in Cork, Ireland, for New Year’s Eve and watched with amusement a visibly pregnant woman smoking and sharing a beer with her obviously pre-teen son. Simpler and more trusting, indeed!
I’ve always been flabbergasted that among friends who buy and sell cars fairly frequently the standard procedure is a bag full of cash. In 2025! And when I question this they think it’s weird that I find it weird.
But it seems like a bit of an annoying problem. You basically have to go to a bank. I’m surprised there’s not some kind of app for facilitating these transactions.
I can call my bank and they will lift dollar limits for a full 24 hours on my debit card. Purchased 5 figure motorcycles this way.
So you get out $10k+ in cash?
I’m not sure you understand how a debit card works.
Enlighten me. Can the seller accept a debit card transaction? How?
Jdoubledub did not specify that the motorcycles were purchased through private transactions. The larger context of this discussion is dealerships and other commercial entities; they are almost always set up to take debit and credit cards.
Having said that, private sellers can use apps for money transfer or they can use devices like those from Square (which attach to a mobile device and read mag stripes and/or chips) to take card-based payments.
The point is that using a debit card does not require the user to withdraw cash. However, banks may place limits on how much the cardholder can spend via debit in one day, hence Jdoubledub’s call to the bank.
Yeah the problem is that there are no easy and trustworthy ways to exchange several thousand dollars for a private party purchase. Venmo caps at like $3k or something like that, paypal fees suck, no one in their right mind would accept a check, so the only other way I’ve done it is to meet at the bank, and fill out the paperwork while being there when the cashier’s check is issued. Or better yet was when my buyer and I used the same bank and could just directly transfer the money at the bank. But much of the time, cash really is the easiest and most secure way to do it.
Agreed.
It’s also dependent on the nature of the transaction. For a $15k car, people are pretty tolerant of “meet me at the bank” if you are aren’t a pain in the ass to begin with.
For that $1200 rare motorcycle that listed 20 minutes ago and will be gone in an hour, you better show up with cash.
Yeah for sure. Anything under $5k it’s going to be cash or nothing in my experience.
Won’t most banks facilitate those transactions in person?
I bought my current car from an old friend, it was his late father’s. I gave him a check, which I wouldn’t have done without knowing the money was good, and he took it, since we’ve known each other for thirty years.
I was finally selling my Ford Focus and received $1,200 in cash in my hand, which seems like a very reasonable amount to do in cash. Then I had to give it back because my title had disappeared between when I posted the Facebook ad and when I sold it. I expect my wife or my MIL threw it out…
When selling old cars, cash is nice because there is no link between you, no take-backs, and so on.
What is this “Cash” thing you speak of?
The last bank I worked for did not keep “Cash” in our offices.
If you wanted some, you had to order it a day in advance – and you could either pick it up or have it delivered to you. Or you could get some from the ATM, or any other ATM on the planet at no cost (fees were reimbursed – including foreign-exchange fees for using non-USD ATMs, or even getting cash from cruise ship front desks)
Which was quite a surprise for a couple of would-be bank robbers over the years.
That is why you call ahead.
When I took out $25K for a car purchase I called my credit union a couple days ahead and told them I would be taking out $25K in cash on Friday. They said OK. Showed up on Friday and they said, why don’t you take a cashier’s check. I said because I’m driving 200 miles to another city to shop for cars and I don’t know who I’ll be buying from and what the purchase price will be.
So they gave me the cash. The odd thing is they counted it out at the counter and then that teller carried it over to an office for a manager to count it out again.
Not at all shocked this was Fredy. They still run a lot of used car only operations in Houston, and their entire business model has always been shady. Not surprised at all that someone working for them thought they could get a bit more off the top.
I wonder how many Fredy employees are still working at the store under new ownership- I would definitely be cautious in doing deals there.
I used to live on Fuqua not far from that dealership. I remember when there was a waterbed store right between the Kia and the McDonalds.
Also, get yourself a receipt, people!!! Even if this salesman forged the receipts, it would still be a basic paper trail.
That is the real lesson of this story.
As a serial buyer of old cars with cash, I had quite an awakening when my wife started working at a bank. Putting aside the risks outlined in this great article, withdrawing cash is seen as a red flag by your bank and large withdrawals are typically flagged for investigation. Just something to be aware of – even that car you’re paying $3,000 in cash for – can been seen as a suspicious activity by your bank.
Huh, had no idea about this. If this is true, I’m certain my bank has my account permanently flagged over my project car purchases over the years.
Very true. The DMV paperwork and paper trail is worth the hassle if push comes to shove.
Yeah I prefer not to pay cash, I much prefer international wire transfers, those are much less suspicious right?
Indeed, also be sure to have your man route them through at least 2 of offshore accounts in the Caymans.
One in the Caymans, one in Switzerland usually. But seriously, I have imported several cars at this point, so I have legitimately wired money to England, Japan, then helped a buddy in England get parts for a car he imported from here that he paid me via wire, so lots of international money transfers over the years, that’s not going to raise any flags at all!
o.O
I guarantee you someone like me (when I was involved with Banking AML) was looking at your transactions, asking questions and filing reports.
It’s actually a federal law they have to report withdrawals over $10K to the Fed. FBI I assume, maybe the treasury or something but it was tied to drug enforcement/war on drugs legislation IIRC.
Correct.
Cash transactions with Banks over $10K automatically get a CTR report to FinCen. Bank auditors would actually review samples of such transactions and match them to FinCen reports. Missing report = bad audit.
Then there are suspicious activity reports (SARS) which get filed with US Treasury. That could include cash transactions which are close to, but not over $10K – because someone might be attempting to circumvent the CTR reporting requirements.
And it’s not about just drugs. Money Laundering, Fraud, Elder Abuse, Tax Evasion, Graft, Corruption….
One thing I miss about working in casinos was the number of people who tried to structure bets or payouts to avoid going on the CTR. Congratulations, now you get an SAR instead, which is so much more fun to deal with.
IIRC it took $10k before the IRS got notified.