2006-12-28 15:15:31 · 9 answers · asked by jbeck1234 1 in Cars & Transportation ➔ Buying & Selling
Actually, you'll get a better discount if you let the dealer finance the deal -- possibly a MUCH larger discount! But you can still get that discount AND beat the dealer at his own game AND pay cash. Read on!
Here's a dirty little trick you can pull on virtually any dealer. It works a CHARM and is completely LEGAL. It does involve a little subterfuge but you get to get one over on the dealer. Let the dealer pitch you on payments, not on price. Show enough interest on price that he gets it down to what you really want to pay but let him "make it up" on the financing. Sign the paperwork and close the deal. (Know your numbers going in, you'll need to think fast to pull this off.)
Now, here's where you play DIRTY! When you go to take delivery, hand the dealer a check for the loan amount -- pay it off in full right away! The dealer will probably throw a hissy-fit, but there is not a single thing that he can do about it! You win! At most you'll owe a day's worth of interest on the note, less than $10.00!
Or, if you want to avoid the confrontation at delivery and don't mind paying a couple hundred $$$ for the pleasure of blind-siding him, just take delivery and say nothing. When the first statement arrives in about a month, cut a check for the full balance due and mail it off.
This will cost you one month's interest, but here's the fun part: When the dealer gets his next statement from the finance company with his share of the finance profit he'll see a nice fat chargeback for the loan that you paid off early! You might even get a nasty phone call from him -- I got called every name in the book back in April when I did just that.
This works well even if you plan on financing a car. Get pre-qualified at your bank or credit union before you go shopping. You'll get the best rate that way AND you'll know how much you can spend. Let the dealer think he's financing you at a premium rate in exchange for a discount on the "cash" price. Then pay off the dealer-placed loan with your bank or credit union loan. (Your bank or credit union will process this as a re-fi so go straight to the bank or CU from the dealer to keep your new-car rate.)
BONUS: When you pull this off, not only do you get YOUR price on the car, but you get a nice fat entry on your credit report for a $40,000 loan PAID IN FULL AS AGREED!
2006-12-28 16:11:02 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 1⤋
Truthfully, there isn't as much mark up on vehicles as people expect. If it's a $40 000 car, the dealer probably only has room to move about $1500 before they are into their money (of course unless there are incentives to the dealer). Dealers mostly make money on used vehicles...it's pretty much how they survive. The dealer itself doesn't lose money if you pay cash but all your doing is making it a pain in the *** for them because they have to count all $40 000 to make sure it's there. If it's that big of a deal to pay for it cash, at least do so by certified cheque...they'll appreciate it a whole lot more! If your buying the vehicle privately, it shouldn't matter!
2006-12-28 23:33:35 · answer #2 · answered by infinitigirl2005 1 · 1⤊ 0⤋
Cash is not a huge inducement to the dealer as they will not make any money on the financing. I would not discuss payment at all until you have settled on a price. As far as the price to pay, it depends on the car and how well it is doing on the market. You can expect to negotiate a lot off of an American car, but not get squat off of a new BMW.
www.carsdirect.com - option it out as you wish and it will show all incentives and rebates and give you a fair target price. If you can get it down to like $500-$1000 over invoice, you have done well.
2006-12-29 19:44:09 · answer #3 · answered by XUSAAAgent 5 · 0⤊ 0⤋
A cash purchase is actually less desirable to the dealer than one that is financed through the dealer's credit department! The dealer is going to get paid up front for the vehicle if you pay cash, either with your own funds or money you borrowed, or if you finance through them. The difference is the dealer makes a bit of a profit on the financing if you do it through them.
You do not say what vehicle you are looking to purchase. If you are looking at a popular car, or a car that is in short supply, you will not get as big a discount as if you are buying a car that few people want!
Go to http://www.edmunds.com to get dealer cost pricing information!
2006-12-28 23:22:32 · answer #4 · answered by fire4511 7 · 2⤊ 0⤋
As a former car dealer, my response might be surprising to you!
If this is a dealer sale, the answer is 'zero'. They actually prefer that you finance a car as they get a rebate for servicing/selling the loan.
What you can do to obtain a discount is determine dealer cost (i.e., what deal pays for car) and any available rebates. Car manufacturers offer these frequently and are a strong negotiating point. This info is readily available on the Internet. Look at Edmund's or Kelly Blue Book or other sites.
Marc
2006-12-28 23:29:00 · answer #5 · answered by marccrotty 3 · 2⤊ 0⤋
None. The only reason they would consider giving a discount for cash is if they were hiding their income for tax purposes.
No dealer in his right mind would openly do that kind of deal.
Your cash is no more valuable than your loan.
In fact he makes more if you get a loan than if you pay him cash.
2006-12-28 23:21:05 · answer #6 · answered by Anonymous · 2⤊ 0⤋
none...
some dealers lose money with cash money.
2006-12-28 23:23:08 · answer #7 · answered by cork 7 · 1⤊ 0⤋
at least 4000 min.
2006-12-28 23:20:42 · answer #8 · answered by chrisso_w2003 3 · 0⤊ 2⤋
None.
2006-12-29 00:33:49 · answer #9 · answered by parabellum 2 · 0⤊ 0⤋