New rules for buying a car with cash in the UK explained

People planning to buy a car with cash in the UK may have seen reports about new rules affecting large cash payments.

The important point is that there is not a new rule banning ordinary people from buying a car with cash. However, changes to the UK's anti-money laundering rules mean there are stricter requirements for businesses accepting large cash payments.

From 30 June 2026, the threshold for a business to be treated as a High Value Dealer changed to £10,000 in cash.

Cars are specifically included among the goods covered by the rules.

This means that if a car dealer receives £10,000 or more in cash for a vehicle, the business can fall under the high-value dealer rules and must comply with anti-money laundering requirements.

The rules also apply when payments are split into several amounts that appear to be linked.

For example, a customer could not simply pay £5,000 in cash one week and another £5,000 later for the same car and expect the payments to be treated as completely separate transactions. HMRC specifically identifies linked cash payments for a vehicle as potentially falling within the rules.

However, this does not mean you cannot buy a £10,000 or £20,000 car.

The rules are mainly about the obligations placed on businesses handling large amounts of cash and preventing money laundering.

In practice, many major car dealerships already do not accept large cash payments. HMRC says most major dealerships generally accept payment by methods such as bank transfer, card, finance or part-exchange, rather than large cash payments.

If you are buying a car privately from another individual, the situation is different from buying from a motor dealer operating as a business.

For anyone buying from a dealer, it is therefore worth checking the dealership's payment policy before turning up with a large amount of cash.

The changes are part of wider efforts to prevent criminals from using high-value goods, including vehicles, to move or disguise illegally obtained money.

So, if you were thinking about buying a car with cash, you have not been banned from doing so. The main change is that businesses accepting large cash payments now face specific anti-money laundering requirements once the relevant threshold is reached.