cash sale of old used car

In my point of view, there is no provision, which is binding on the assesse to sold an asset on cash.

Yes, An Assessee Can Sold Car in Cash.

unwilingness to buy your car through cheque etc indicates involvment of black money, which may come in the scrutiny of IT Department and buyer may be in trouble if you show sale through cash in your books of accounts. technically there is no provision which say not to sale through Cash 

Please note that the restriction on csah receipts are for taking loan or deposit in excess of Rs 20000. So far as sale of car is concerned you are free to take it in cash.

siva208 @ yahoo.com