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I was selling a bike and a gentleman agreed to buy it and pay with money order. But it turns out he was only 40 min from me by car, so we both agreed local pick-up was the way to go. However since he will bring cash, he insisted that I lower the price by $100. He was like, "I am handling over cash, I gotta get a better deal. That's how it always works."

But why is cash better than a money order? In fact by picking up, he saves on shipping, packing and money order costs.

The thing is, it's happened many times that people seem to imply some magic with cash that I can't seem to figure out. For example, someone would say "I will pay you (40% of your asking price), but I will pay all cash.", as if the fact I am getting cash is worth a 60% discount.

What's the deal?

PS: I am not a bike shop and the bikes are used personal bikes, so there is no tax issue/savings no matter how payment is made.
 

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tell him he is getting a better deal by not paying for shipping. if he is admanmant tell him no deal and sell it to someone else. You do owe anyone a better deal.
 

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Growing Older, Not Up
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Well it won't cost you $100 to depo a money order at the bank and he saves on shipping. Also, by doing a local pickup, you bear more risk since you don't have a tracking # or shipping receipt to prove you delivered the goods.

If you go through with the deal (no, don't give a cash discount), put together a bill of sale that you both sign so help avoid any of these disputes.
 

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3 possibilities-

1. it is a buying technique to offer a handful of cash. this works some of the time. there is something appealing to some people about the wad of cash immediately. i guess cuz you can do things with the cash immediately versus having to go deposit a money order, etc., but also cuz some people sell things when they are hard up for money or want to go buy some smack - a handful of cash looks good then, too. even if they are getting less $ overall, it makes it a shorter distance between where they are and where they want to be.

2. some businesses and people like to deal in cash cuz they can cook their books easier, such as not paying sales tax, etc. this is a benefit for some sellers, so they are willign to lose a few $ cuz they will make up for it elsewhere.

3. you know the money is good. given a choice of $120 check or $100 cash, some might take cash cuz they are buying the assurance that it it won't bounce.

because of these few reasons, some people get the idea that generally cash should get you a better deal in some situations - like selling a used bicycle.

whenever i have sold used car, i have always gotten those callers that offer a low-ball price, in cash.

unless there is some aspect of the deal that makes you steer toward cash (like he wants to pay with a rubber check), just tell the guy you prefer to mail the bike a couple miles rather than joke around with this discount hassle.
 

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n00bsauce
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I assume the terms of the deal were spelled out in your ebay ad. That's the deal, no more, no less. If you said discount for cash then you owe him one (but I assume you didn't offer a discount for cash). The only discount/cost savings would be pick-up instead of shipping. Other than that he owes you the amount of the winning bid and in the manner you listed as acceptable payment. If he doesn't pay you the amount of the winning bid and in the manner you listed as acceptable he doesn't get the item. End of story.

Cash might be an advantage to the seller if he was concerned about the buyers check bouncing. Otherwise, fugetaboutit.
 

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iliveonnitro said:
Easy answer: no. Tell him if he doesn't bring the full payment, then he must pay by money order, and you will only ship it - so he has to pay for shipping charges too.

Simple solution.
What iliveonnitro said. An ebay bid is a contract. He is obligated to pay the closing bid. You are doing him a favor by letting him pick it up. While you're at it, make sure you write up some kind of bill of sale just in case he is shady enough to file a claim with ebay that you never shipped the bike.
 

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yeah, he's an asshat.

People do that all the time when you're selling a car; it's because a lot of other people say "sure, I can pay you $4000 ... I'll give you $1000 now, then next week another thousand, then five hundred a month..." So, sellers are often lured by a wad of bills. And, since you don't know the guy who's selling the car and he doesn't know you, it can't HURT to offer a lot less.

I agree, in this case, it's very bad form: he already agreed to a purchase price.

That's why eBay has the "submit best offer" option, if you want that.
 

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That defies all logic. Money order is as good as cash (unless it's either a forged document or drawn on a bank that goes belly up and is not FDIC insured). Discounts for cash vs. credit are common and appropriate, because the seller doesn't have a risk of not collecting the credit, or lose interest on the money while he's waiting to collect it, but for legal tender over an FDIC insured bank's guaranteed promise to pay??? Maybe in some third world country with an unstable gov't and banking system.

He's saving on shipping and the cost of getting the money order. It's to his benefit to pay cash and pick up. Either he's incredibly naive, or he thinks you are.
 

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The only time the paying in cash arguement works is when you are standing face to face and conducting a transaction, and then it is only to show you are a serious buyer who is ready, willing and able. Other than that it is BS. In fact, most car dealers would prefer you finance over bringing in a check or cash because they get a kickback from the lender on the loan.
 

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MO's can be bought with cash at Mini MArts

and there is very little difference between the 2 (unless it is for 1,000's where Bank may want to hold to clear,in which case it isn't 'just like cash')
say you won't charge him shipping and you are meeting him halfway, that's bargain enough. Do it in the daylight in a crowded area.
 
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