Buying a new car paying cash( not financing) in Bulgaria

There seems to be a bit of confusion about paying "cash" here in Bulgaria. Under the Bulgarian Limitation of Cash Payments Act any transaction that exceeds 10,000 leva (or the equivalent in another currency, or is a part-payment/installment on a larger transaction) is not permitted to be made or received in cash; credit/debit card payments are not regarded as cash, since they involve bank to bank transfers.In addition, some companies, our local builders merchant for example, have systems that reject payments from non-Bulgarian cards (such as Wise) - @JimJ

I bet people still pay in cash for stuff regardless.  Old habits die hard.   And cash is anonymous.

I'm monitoring the situation in the sector and I think it's going to go completely digital in some countries with no physical cash used whatsoever.

I checked with two dealers recently (in Stara Zagora) and both told me (1) no credit card option (2) no cash payment - only bank transfer…

I checked with two dealers recently (in Stara Zagora) and both told me (1) no credit card option (2) no cash payment - only bank transfer… - @guenovnd

I'm not sure they would be keen on having someone handing over a sh^t load of notes just to be counted.

I've had the same every time I've purchased a car from a dealer in the UK. None of them would accept a credit card payment, either, probably because of the risk of the buyer doing a chargeback. It's always been bank transfer.

There seems to be a bit of confusion about paying "cash" here in Bulgaria. Under the Bulgarian Limitation of Cash Payments Act any transaction that exceeds 10,000 leva (or the equivalent in another currency, or is a part-payment/installment on a larger transaction) is not permitted to be made or received in cash; credit/debit card payments are not regarded as cash, since they involve bank to bank transfers.In addition, some companies, our local builders merchant for example, have systems that reject payments from non-Bulgarian cards (such as Wise) - @JimJ
I bet people still pay in cash for stuff regardless. Old habits die hard. And cash is anonymous.

I'm monitoring the situation in the sector and I think it's going to go completely digital in some countries with no physical cash used whatsoever. - @fluffy2560

Cash is indeed anonymous, that's why the law was passed - and why breaking it is punished:

For a Natural Person (Individual), the penalty is a fine of 25% of the payment made, and 50% for any subsequent violation of the law, including any different transactions.

If you're a Legal Entity (Company) (or a foreigner purchasing anything on behalf of a company) the penalty is 50% of the payment made, and 100% for any subsequent violation of the law, including any different transactions.

In Greece, card payments for anything, even your morning espresso, are practically already mandatory nowadays - the government wants to know about every cent you spend, and it'd better not total a cent more than you declare that you earn...

@JimJ

In the US "paying cash" means either using a cheque or a bank transfer.

It means  that one will not be making monthly payments. It is the best way to avoid paying

any interest for a big purchase.

In Bulgaria people have different understanding and they get very confused when I say I will pay something  in cash.

I do not carry bags of cash!

@TonyFF

Manland Europe doesn't do cheques, I only know the UK to do them, and they seem to be slowly becoming a rare thing or less popular. There is hire purchase, which is paid in instalments, and bank transfer.

@TonyFF
Manland Europe doesn't do cheques, I only know the UK to do them, and they seem to be slowly becoming a rare thing or less popular. There is hire purchase, which is paid in instalments, and bank transfer. - @SimCityAT

Cheques were never popular in Europe.   In Hungary we have "Yellow Cheques" which misnamed as they are not cheques, they are Giro slips.  We use them in the PO.  There are now digital versions.  I bet they exist in Bulgaria in some form.  Usually with a unique QR code.

Cheques - promise to pay

Giro - cash (or other instant instrument like debit card) with "order" (payment instruction).

BTW, you won't be surprised to know I used to work in a bank.

Cheques are still being used in the US. I rarely use them though.

I can write a cheque if buying a car  though for the whole purchase no matter the price( they will gladly take my money). It will take a few days for the cheque to clear.

Using a  credit card - no problem up to$ 10 000  is acceptable. I have 3% rewards  cash back card so this is very nice option. I will make easy $300 without moving a finger.

Debit cards can be used up to $10 000 as well. Many options to get your money!!!!

Bulgaria is a different ball game:(

It is very funny to me too when I say I will pay cash for something  in  Bulgaria and  people jump and

say 'Oh no you cannot do that"- they do not understand me".

I am gradually learning the EU banking system. I find it quite predatory with fees that I have never paid in my life. At this point staying away from Bulgarian banks is a very prudent thing to do.( we have  Bulgarian relatives with bank accounts  if needed)

Cheques are still being used in the US. I rarely use them though.
I can write a cheque if buying a car though for the whole purchase no matter the price( they will gladly take my money). It will take a few days for the cheque to clear.
Using a credit card - no problem up to$ 10 000 is acceptable. I have 3% rewards cash back card so this is very nice option. I will make easy $300 without moving a finger.
Debit cards can be used up to $10 000 as well. Many options to get your money!!!!
Bulgaria is a different ball game:(
It is very funny to me too when I say I will pay cash for something in Bulgaria and people jump and
say 'Oh no you cannot do that"- they do not understand me".
I am gradually learning the EU banking system. I find it quite predatory with fees that I have never paid in my life. At this point staying away from Bulgarian banks is a very prudent thing to do.( we have Bulgarian relatives with bank accounts if needed) - @TonyFF

I've been involved in US banking processing and yes, cheques (US: checks) are still in use. From a processing perspective, it's ludicrously outdated and backward.  It makes no sense to keep at it.

I have received US and Canadian cheques previously and my UK bank now refuses to process them.  They did for many years but now, it's transfers or nothing.   I've never tried to cash them in Hungary where I live. It's going to be problematic in the future.

Of course government loves transfers as it's traceable for all kinds of purposes like anti-money laundering, tax evasion anti-terrorist financing.  Cash is obviously anonymous.  It's becoming harder and harder to use cash in Westernised economies.

My dad does have lease hire, he has a new car every 3 years, and at the end, he has the option of whether to buy it or have a new one. He goes with having a new one. He is 85 next month, and he only drives to the shops with it now. I think he enjoys having the latest car and he enjoys it.

@fluffy2560

For many years we used to send money to family in Bulgaria with official bank cheques and cashing was never a problem. Of course they took some stupid fees for that. Bulgarian banks have fees left and right.

As I said quite  predatory. Same with the Bulgarian phone companies.

Re."leasing a car" (which has actually a  different meaning in Bulgaria): I do not find this a great option for me.

@fluffy2560
For many years we used to send money to family in Bulgaria with official bank cheques and cashing was never a problem. Of course they took some stupid fees for that. Bulgarian banks have fees left and right.
As I said quite predatory. Same with the Bulgarian phone companies.
Re."leasing a car" (which has actually a different meaning in Bulgaria): I do not find this a great option for me. - @TonyFF

Might work in BG.  Over in HU, I've never tested a foreign cheque just on the grounds that they'll rip us off as they usually do.  In the UK, banking is essentially free for individuals   They rip you off by paying almost zero interest on balances. 

I'm also using Revolut.  Their charging structure is pathetic!  Like if I wanted to pay say, a UK CC bill, the idiots try and take a fee, even if my money is in Sterling. But if I move the money to a UK bank account it's free.  I can then pay the CC bill directly from a UK bank account for nothing.  Like WTF?  Why would I use it then?  I mainly use Revolut to give my Mrs and HU daughter money as it's instant and they need money in local currency (the HUF, Hungarian Forint).  I haven't tried to send money to my other daughters in UK and Canada.  My son is in HU but he's too young I think for Revolut (he's 16, still in school) but there might be Revolut Junior.  Never really looked into it.  Something else for the list.

Leased cars exist in HU.  They have different number plates with a date on the right hand side.  I haven't seen those plates for a while.  Mainly used by businesses. I don't think any individuals use that method.

I agree- we are all the victims of the banking systems whether in the UK, EU, US.

I use Wise. It is ok, not great. Of course it has fees also. Recently I had to send money to Germany and I was shocked that there were no fees and the money was instantly delivered.

If I send money to Bulgarian recipients there is  always a fee.

The US banking system has better options to use your money. Lately there are the so called high yield saving accounts and CDs ( they are not bad now -around 4.5%- 5% interest) - this does not exist in Bulgaria( I looked  into that - there is something   like compounded interest saving account which is a joke! The longer you keep your money the higher the interest becomes but it is not much to begin with. Totally not worthy.

So  Fluffy  do you live in Hungary? Do you like it? I visited Budapest years ago- beautiful city. People were quite reserved. And the language was another story- totally  different world. I heard that Hungary is not doing well nowadays- very high bank interest rates. Hard to borrow money and to  buy properties.( not that Bulgaria is doing fantastic)

So Fluffy do you live in Hungary? Do you like it? I visited Budapest years ago- beautiful city. People were quite reserved. And the language was another story- totally different world. I heard that Hungary is not doing well nowadays- very high bank interest rates. Hard to borrow money and to buy properties.( not that Bulgaria is doing fantastic) - @TonyFF

Let's just say people travel from Hungary to do their shopping because it's cheaper for them. People from Austria still travel to Hungary for their dentists, as that's cheaper for them.

Let's just say people travel from Hungary to do their shopping because it's cheaper for them. People from Austria still travel to Hungary for their dentists, as that's cheaper for them. - @SimCityAT

Yes, it's amazing how that has changed.  It used to be the HU car parks in the border area were full of AT cars but nope, not now.  Everyone is in Billa or Hofer (aka Aldi).  AT has no hypermarkets except DIY stores. I especially like Hornbach in Wiener Neustadt.

On the other hand, shops are open on Sundays in HU but not in AT.  So more premium prices if you need milk for your tea and coffeee or a hammer drill. Perhaps both.

Some of those "border" dentists in HU need to be struck off.  I know to my cost!

So Fluffy do you live in Hungary? Do you like it? I visited Budapest years ago- beautiful city. People were quite reserved. And the language was another story- totally different world. I heard that Hungary is not doing well nowadays- very high bank interest rates. Hard to borrow money and to buy properties.( not that Bulgaria is doing fantastic) - @TonyFF

Yes, I do live in Budapest (on the edge of the city).  It's got a lot to see.  The government and their policies suck big time and the economy is circling the plughole despite what they say.  It's a kleptocracy.  People are very annoyed. The cost of living is becoming. brutal. I reckon it's minimum 2 - 3 x higher than it was 5 years ago.   People are  struggling and can hardly cover their bills.  After 14 years or so of absolute BS, we might get a different government.  The local elections next year will be a good indicator of change.    Hungary is the original Trump model.  Trump's MO is straight out of Orban and Fidesz (his political party)'s playbook.   

It's so depressing, Mrs Fluffy is now talking regularly about leaving.   That's been a big change. Previously she never really considered it.  And Brexit has really screwed up free movement in the EU. If that hadn't happened, we'd probably be living in Spain by now.

Fluffy - every country has its problems. And every move is expensive. FYI Bulgaria is still very affordable.

re. Hungary : it is on our list to visit again.

It is very exciting to take a short flight and enjoy Europe without a jet lag. We love traveling but the jet lag in the past has prevented us to enjoy Europe in fullness. Now we are having a blast.

We are briefly in the US at the moment. And I would like to share  interesting statistics:

In the  San Francisco Bay Area live  7.59 million people.

Little  Bulgaria has only  6.4 million population.

We are leaving in 2 days and I cannot wait to go back to  the nice, peaceful and quiet Bulgaria:)

Fluffy - every country has its problems. And every move is expensive. FYI Bulgaria is still very affordable. re. Hungary : it is on our list to visit again.  It is very exciting to take a short flight and enjoy Europe without a jet lag. We love traveling but the jet lag in the past has prevented us to enjoy Europe in fullness. Now we are having a blast. We are briefly in the US at the moment. And I would like to share interesting statistics:In the San Francisco Bay Area live 7.59 million people.Little Bulgaria has only 6.4 million population. We are leaving in 2 days and I cannot wait to go back to the nice, peaceful and quiet Bulgaria:) - @TonyFF

Not sure how the population of SF has anything to do with Bulgaria.  My own country (UK) has a population of close to 70M.  Doesn't have any bearing on HU.

The politics are long term dire in HU depending on which way you lean.   We're liberal people, not illiberal and it's like living in dystopian madness.  It's become a bad fit. It wasn't before but it is now.  Example: Orban said Ukraine is not a country.  Like WTF?

We're capable of surviving as we're much older but it's got knock on effects for our kids.  When they start saying they want to leave the country, one has to wonder.  They will join others migrating to better lives elsewhere in the EU.  We would not discourage them as they should do what they need to do without worrying about us.

Bulgaria has a declining population.  I believe it might reduce to something like 5M over a couple of decades. It'll have knock on effects on services if anyone lasts that long enough.

Looks like we're woefully off topic. The moderators will be after us.

I hear you.

Re. my comparison: I was comparing crazy Bay Area with Bulgaria which is so sparsely populated.

I do not care any more about politics. My family in the US is ok. Same with my family in Bulgaria.

I  try to enjoy every moment of my life; I am working on a new garden project; I am writing a little book;  my wife paints and will have an exhibition soon. We travel, we exercise and eat organic Bulgarian food. We are very active.  Bulgaria is a little piece of tranquility and we value that.

Coming from expensive Bay Area we can live anywhere in the world. At this point we like the simple life of Bulgaria; if we decide in the future to move again we will go wherever the wind takes us.