How large is the bargaining power of "cash buying"?

If you choose a zero percent deal

Then you can be sure the total price is way above normal

If you do have cash you have always the option of offering lover price
and most of the time you get it - cash in hand is always cash

Problem is dealers are always dealers and you have to count your
fingers after shaking their hand

Best is use the japanese style and not shake their hands

 

If you choose a zero percent deal
Zero percent is often times a bad deal. Most buyers don't qualify (you
have to have extremely excellent credit, normally) and often the terms
are short (two or three years).

But, you should never dismiss it out of hand. You CAN find some great
deals with zero percent financing. Just make sure it works in your
case.

Most of the time it won't, occassionally it will, esp. if it is the end
of the model year and the dealers are scrambling to get the old model
off the lot. There are very few "always" in car deals.

 

None, the dealer either get paid by you or a finance source. The dealer
earns a portion of the interest, as well, if you use one of his finance
sources. The thing that will influence the drive home price for you is
whether you have a trade or not. When a trade is involve the dealer must
consider its value when it is actually sold. Dealers consider 60 to 90
days, on average, before a vehicle will be sold. When there is no trade he
knows he will have money to pay off the manufactures invoice and what the
net profit will be the day you buy the new car, not 60 to 90 days later.
If you have a late model trade he most likely will not even get enough money
in total to pay off the manufactures invoice let alone his sales costs.

Are you in the US? If I were you I would shop around a bit more, 22K is a
lot of money to drive home a 4cy car, you cold drive home a V8 for that kind
of money. There are many good nicely equipped V6s on the market that can be
driven home for less than 20K and 4cy for around 16K


mike hunt

 

I see no benefit to buying with cash. No matter if you have cash or
have loan, the dealer will get all their money before the car leaves
the lot.

 

Hey, at least they're being honest. That's better than swindling some
naive buyer for rustproofing or an extended warranty.

 

heh... thats on top of "scotchgard", "permaplate" and "the gold kit"

 

wheres "around here"?
what models are excluded?

yup. just by letting my money sit in an emigrant savings account, im
making $75/mo for doing NOTHING.

 

you can always go through costco, sams, AAA, and get their "special"
pricing, which is below MSRP, and usually just a little above invoice.
that price is fixed and doesnt change regardless.

THEN tell em you wanna qualify for the 0%.

if your credits spotless, should be a done deal.

 

nah... the best way is arab style-

take a shit and wipe your ass with your hand. THEN shake their hand.

 

WTF?

they give $4500 for a tradein, then sell it for $7995.

how is that NOT making money? they make money coming and going.

 

"additional dealer markup"
Had to stop in a VW dealership years ago and the nice stealer had a VW
convertible with that caption on the new car price sticker. My friend
saw it first - we had stopped for a few pops and were feeling a little
tipsy - he started howling with laughter - I looked at it and said out
loud WTF - they asked us to leave.

Yeah I really love all the ways dealerships try to rip you off.

Have always bought with cash - it makes the transaction simpler and
gives the stealer less of a chance to do his thing.

 

But, why I saw the ad in paper saying that cash or trade a couple K $
off? It seems to me that cash may indeed have lower price on a car.

 

Agreed, you should get an extended test drive of the car to at least get the
feel of the car to make sure you like it. I had an 06 Ford Explorer rental for
work a few weeks back. On the interior they have the fake shinning chrome on a
lot of the dash. On the day that I rented the car it was cloudy and didn't
notice a problem, but when the sun came out, the chrome was blinding me; had to
cover it with my hands (Quality Ford Engineering). Be sure to test drive any car
on a sunny day.


Nick

 

I sort of disagree Travis - although you are right about them getting a
kickback from the financing, the advantage of having cash is that you can
bargain on the basis of "I'll buy it right now" - dealers like a sure
thing, and hate to see someone walk out the door without a firm
committment.

David

 

You need to remember, from the dealer's perspective, ALL sales are
effectively cash. they get paid on the very first day, just as they would
get paid when you write the obscenely large check, or drop the bundle of
$100s on the table.

I see no value to a cash transaction. Indeed, I was recently party to a cash
transaction on a Used Car, and the cash actually was problematic for the
dealer to deal with. It ONLY served to represent our sincere interest in the
car, and that had negotiating power to a small degree. But, you should only
play the Cash Card AFTER you come to a price that you and the dealer agree
with. Your bundle of bucks might shave another 500 or 1000 bucks because of
the immediacy of the deal, and your willingness to walk away - taking your
bundle with you. Negotiate yoru best deal without disclosing the terms, then
lower the price when you present your terms. I don't see any more than a
couple hundred, a thousand at the most, coming off the price because of
cash. Remember, the dealer is paid before you get home, either way - cash or
credit.

 

Reminds me of a post here that not long ago reported on a guy who walked

I was with a friend one day who walked in to buy a Toyota Camry. He got it
fully loaded and at the negotiating table after a bit of haggling got them
to drop the price by $3,800 (this was in 1999) but in exchange for 17.9%
financing with zero down. There was not a prepayment penalty. So he took
the car. A week later he comes back from lunch telling me he walked in and
paid the loan in full and they were so mad, they actually told him never to
return there again.

But on a side note, another friend purchased a Jetta and paid it off in 3
months and it actually hurt his credit record somehow. He tried to to
finance another car 9 months later and no one would approve him and those
that did wanted high interest rates.

Having paid for my cars in full, I learned if you're going to pay off early,
do so on a 12 month increment.


Thanks,
Shawn

 

Try to minimise the hassle you could be thought of as causing --

Depends on the demand of the vehicle. As I recently learned, after waiting
for weeks for a Civic Hybrid, once you've waiting, you're in there to
purchase, then they try to pitch you for accessories and warranty, they know
you aren't leaving without the car and they don't care if you do because as
soon as you walk out the next person will be happy to purchase it no
questions asked.

I wasn't happy about the $1,995 six year warranty and $795 auto dimming
mirrors or $189 tire locking nuts or $320 splash guards (all three of which
come pre-installed and cannot be removed). All this after a $6,500 "market
adjustment".

I actually walked out and said I'm not interested in purchasing the car. I
want to purchase it to save money, not counter-balance savings with the
greed of the dealer. They called me back in as I was opening my car door to
bring me back my license that I had forgot they had and they discussed a
$500 discount. Not good enough. I walked out.

Now, I am about ready to purchase a Civic Hybrid via Costco auto program
where the final price of the vehicle, with the accessories I want and
warrantee, to get the keys, is less than $26,000 with Navigation. Once it
arrives I make payment (I'm paying cash and they know it because I am sick
of their crap so I just told it like it was) and I drive the car. I can
only hope it goes that smoothly but my past experience working with Fleet
managers is that things usually go smoothly.

Whatever your bargaining chip happens to be, it usually won't easily exist
for a vehicle that is in "demand".


Thanks,
Shawn

 

Now, I am about ready to purchase a Civic Hybrid via Costco auto program

Sorry, mistake, $26,900.


Thanks,
Shawn

 

An additional wrinkle is that:

a. Sometimes there are incentives that can be taken only if you forego
the subsidized financing offered by the manufacturer's finance company.

b. Sometimes there are incentives that can be taken only if you use
the manufacturer's finance company.

While that may not directly affect bargaining power at the dealer, it
may affect the actual price you end up with.

 

The arabs use the left hand to wipe their ass
The arabs use the right hand to eat
Thieves get their right hand cut off
That forces them to eat with the hand they use to wipe their ass

That reminds me of a joke

You ask someone which hand they use to wipe their ass
When the reply comes and you get asked back which one you use you say
that you prefer paper