There are a number of reasons why someone in Melbourne, Victoria might only be interested in paying cash for a vehicle. Many explanations are listed below.   The vendor may prefer cash only as a means of avoiding tax reporting to the Australian Taxation Office (ATO). By doing so, they can avoid paying any sales taxes on the transaction. The seller may prefer a cash sale if they owe money to lenders or creditors and would rather not have those payments garnished. Sellers who engage in fraudulent behaviour may insist on cash payments only so as to obscure any paper trail that could lead authorities to them in the event of a disagreement or legal action. Compared to other payment options, such bank transfers or checks, cash may be processed quickly and easily, which is why some merchants prefer it.   Buyers should be wary of cash-only transactions for whatever reason they may arise and take necessary precautions to safeguard themselves against fraud and other threats.