2006-10-17 11:32:55 · 11 answers · asked by Janet 1 in Cars & Transportation ➔ Buying & Selling
interest rate aside, will the dealer knock off anything from the sticker price?
2006-10-17 11:39:05 · update #1
I gather you are planning to purchase your new car with cash...no financing. That's a good leverage tool.
What I would do is go to www.kelleybluebook.com. Enter the vehicle information completely...but in the mileage area..put in an arbittrary # such as 1000 miles. This will tell you what the car is worth once you drive it off the lot. You probably will not get the car for this price but paying cash...just tell them.,.."I'm looking and I"m paying cash...this is the information I have from kelley blue book once I drive it off the lot" then negotiate with them. I'd say try to meet them half way on the difference of what kelley says and what they want.
Good luck
2006-10-17 11:56:30 · answer #1 · answered by Kenneth S 5 · 0⤊ 0⤋
YOU GAIN NOTHING by paying with cash except the savings of %. Dealers LOSE money when you pay cash (or bring in a draft from a bank, same thing).
Why would a dealer want to lose MORE money by selling you the vehicle for less than market value if you offer them NOTHING on the financing side of things?
I have no idea how this rumor/myth/urban legend got started about cash discounts, BUT IT'S ALL CASH TO A DEALER, except for what the finance company pays the dealer for doing th loan. Also, by paying in cash, it's MUCH harder to sell you the high profit extended warranties.
2006-10-17 19:18:46 · answer #2 · answered by Manny 6 · 0⤊ 0⤋
Most likely no. A dealer gets paid from the lender who provides the loan for the customer. So if a customer pays cash, the dealer does not make that money. Sometimes we give bigger discounts off the car if the customer finances. If you would like in detail the benefits of financing rather than paying cash, email me.
2006-10-17 19:21:24 · answer #3 · answered by Leigh K 2 · 0⤊ 0⤋
It honestly depends on the interest rate you get for you loan.
Simple equation
I = Prt
So if you are putting down 5000, and the interest rate you were able to get is 6% for a 5 year period,
you'll SAVE 5000*.06 * 5 = 1500
You can use the same formula to determine exactly how much interest you'll be paying. Say you're going to borrow $10000, at 7% interest for 5 years
It means in interest you'll be paying
I = 10000 * .07 * 5 = 3500
So the final amount you would have paid on this $10000 loan is actually $13500 (10000 + 3500)
The higher the interest rate, the more cash you put down, the more you'll save.
If you can get 0% interest, it makes sense actually to put nothing down and borrow the entire amount because you're not going to be paying interest anyways, and you can put your down payment in a saving account and actually earn interest.
If you have specifics on your interest rate, how much you'll be borrowing and how much you want to put down and have trouble understanding the simple interest formula, I'd be happy to help you out. Just click on my name on the left to e-mail me.
Dealer doesn't care how much you put down, they get their money right away no matter what (either from you or from the finance place you're borrowing the money from), so they really don't care about how much money you put down. It's a fallacy to think that the dealer will go lower on a price if you have more cash. The only way you can get the price down is to haggle it down. Stand firm and if they want to sell the car, they will come down to your asking price.
2006-10-17 18:34:11 · answer #4 · answered by hsueh010 7 · 0⤊ 1⤋
usually they don't they will give you a discount from the sticker price but its not much. besides the cash you intend to pay for the car will be better off in a time deposit
2006-10-17 18:41:45 · answer #5 · answered by onehello67 3 · 0⤊ 0⤋
not many afford to pay outright for a vehicle, but you might check several dealers for their best cash price--you're saving thousands by not financing-what a dream for most of us
2006-10-17 18:44:28 · answer #6 · answered by phyllis_neel 5 · 0⤊ 0⤋
it depends on the interest rate that you would have been paying...pay as much as you can up front to avoid interest payments...remember the interest payments are compounded so they add up to alot of money over a long period of time.....
2006-10-17 18:40:41 · answer #7 · answered by Michael 3 · 0⤊ 0⤋
Alot. It's crazy how much the finance charges are after you finish paying off your vehicle...I mean unless you have top credit. :)
2006-10-17 18:34:40 · answer #8 · answered by Adri 2 · 0⤊ 0⤋
Depends on how much your interest rate would have been and how much you would have otherwise financed.
2006-10-17 18:35:28 · answer #9 · answered by Always Right 7 · 0⤊ 0⤋
probally quite a bit,not only because there will be no finance charges,if you wheel and deal with them,and if they really want to sell the vehicle,as many sales people do.....lol...cause they work on commision........you could probally talk them down a little..... :) good luck
2006-10-17 21:33:35 · answer #10 · answered by curious1 3 · 0⤊ 0⤋