Ok, I understand money laundering (for the most part) but I don't understand the point of it in this movie. More specifically, I don't get the scene where Brads Jr and Sr launder money by buying a car and then reselling it somewhere else. How does this hide the dirty money? Also, Brad Sr. resells the car for several hundred dollars less than what he bought it for (meaning he lost money in the process). Can someone explain this to me?
shareThat's laundering money. By putting it into the system and getting it out again "washed". Losing a few hundred dollars in the process is certainly worth the payoff.
shareThey robbed the factory the night before, and got a bunch of cash bills out of the safe.
So, to launder the money... they go to the used car lot. Pay cash for the car with the money they stole.
The then go right across the street, sell the car back to another dealer at a lower price (so this dealer can in turn sell the car and make a profit).
So now they got back MOST of the $5000, and got rid of the car they didn't need.
So basically, they paid $400 to launder $5000.
Simply the cost of doing business.
The process doesn't really have anything to do with the second dealer making a profit.
It has more to do with the fact that the stolen money is likely traceable by serial number. So if they walk into a car dealer paying cash, they can use bogus information and trade the traceable money for an asset (the car). Then the car is resold (albeit for a cheaper price) in exchange for money that isn't traceable (or isn't likely to be traced).
They might lose a few hundred dollars in the process, but the result is 100% untraceable profit.
It's important that the second dealer be able to make a profit so they don't get stuck with the car.
shareHe just didn't like the radio!
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