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

I just bought a Civic new this weekend with "cash". The salesguy had
told me a certain price and I asked if there was any better he could do
on the numbers. He said no, that it's the rock bottom price already,
can't go any lower, they installed wheel locks and mud guards which
will bring the price up more, etc etc. I said "that's too bad because I
was going to give you a check for it right now, no big deal... honey,
let's keep looking." All of sudden, for the price that absolutely
couldn't move, he was able to miraculously drop it another grand.

Walk into a few dealers without your checkbook to make sure you can't
buy. Because if you are looking for a car, and you run into the
wrong/right salesmen, he's going to bag you like a buck during the rut.
Go to 2 or 3 dealers, find what you want, and then work them all down
to their good numbers. Think of it as a fun game instead of a stressful
task The ultimate leverage on your side is that 1) You can pay cash and
they know you are a definite sale (no credit problems to crop up after
they've put 2 hours of work into you), and 2) You don't care whether
you buy it today or 2 months from now. (Have that attitude even if you
want the car yesterday) Walk in with some patience. Don't be afraid to
work these guys over. I worked in mortgage sales for a while and car
guys are exactly like loan salesmen. A small profit sale is better than
no sale. And for salesmen that have a zero on the board, marking a 1 up
there even if it's minimal profit sure looks better than a goose egg,
which can get you fired easily.

Also, we shopped at month's end, 2 days before end of month. And, I
heard rainy days are better because there are less people shopping, but
haven't verified that.

And one last thing, I bring along my wife (I affectionately call her
the Terminator. She's the heavy. Good cop, bad cop) and I chum it up
with the salesguy, but when he starts writing numbers on the sales
sheets, I whisper to him, "Look, I know you guys are straight, but F
around with the numbers (like adding BS miscellaneous charges), and my
wife will go f'ing ballistic on you and trust me you don't want that."
)

Doug

PS. You'll find their lowest price after "walking off" the lot a few
times without buying. When they know you are leaving they throw the
best numbers at you.

 

Right. Which has nothing to do with the bargaining power of cash.

 

I just bought a Civic new this weekend with "cash". The salesguy had

That wasn't about the cash. It was because you were willing to get up
and walk away. The same thing would have happened whether or not you'd
been prepared to write a check that day. One of the most powerful tools
a buyer has is the ability to walk. Unfortunately, many don't use it.

I like to tell the salesperson that I haven't decided whether or where
I'm financing. I make it clear that I'm open to whatever special rates
they might have, but that it won't be part of the price negotiation.
And after that point I refuse to talk about it, especially to answer
the question "what kind of payment do you want," which you should
never, ever, ever answer.

 

if you go thru costco, sams, AAA, you can get their BEST numbers right
off the bat. no hassle, no haggle.

i dont know many people that can write a check for $20,000... and have
it clear

i could, if i had to.

see, thats my thing... ive got a really nice 1998 civic CX hatch im
happy with. so i dont give a flying fig if i buy today or in september.
im just going to be shopping the new 2dr/4dr hatches...

honda fit
toyota yaris
scion xA
scion xB

so im going to go get the prices, get the tradein, and sell my car
private party for more. a 3dr yaris with all the features to bring it up
to scion xA level makes it cost more than an xA, which is wacky.

i do like that its got the same VVti engine, and is the lightest in the
bunch. 500 lbs less than my civic cx. all the same go-fast parts should
fit, etc.

the honda fit doesnt have nearly as much aftermarket support.

eliminate all the variables.... sell your tradein yourself. have as much
cash as possible, line up your own financing beforehand. THEN go get the
lowest prices on the cars you want.

or just go through costco/sams/AAA. same deal, no BS.

 

some people (most) dont want to "hurt the guys feelings"

its war, and theyre in it to screw ya.

 

if you go thru costco, sams, AAA, you can get their BEST numbers right off

Going through Costco I got $26,900 including 2006 Civic Hybrid w/NAVI, Tax,
License, Registration, Destination Fee, Splash Guards, Wheel Locks, Auto
Dimming Mirror and Floor Mats. The price was non-negotiable. I laid down
the $500 deposit to pick it up next month when it arrives. This price was
actually about $1,800 better than I could find in So. California that will
allow me to "wait" since I'm not ready to purchase on the lot. Those that I
can pick from a lot are first-come-first-served and I would need a 3 hour
drive to get their and may or may not still be available.

Then, I get a cal from another dealer in San Diego (3 hours drive from here)
and I said if he can't beat the Costco price by $1000 I'm not interested.
He calls me back. I got the exact same features as listed above for $26,023
to get the keys and received a certificate in the mail the next day
indicating the final price as agreed and the features included. I haven't
canceled the Costco deal yet, I'll wait and see how smooth things go but
$900 is a lot to save, especially in this market.

So the bottom line is: AAA, Sams, Costco can get you great deals but don't
stop looking for a better deal.


Thanks,
Shawn

 

Sounds like what happened when I went to purchase my Honda Civic years ago.
We had set the fleet rate, been preapproved by my Credit Union and they had
agreements setup with the dealership, HOWEVER, they required that we talk
with their financing POS person. This jerk kept us there for 2.5 hours while
my three little children were hungry, tired, and had been expecting to go to
lunch 2.25 hrs before. It was supposed to be an "in and out" event.

Definitely not a gold star sales pitch... The jerk tried to tell me that I
had to purchase their extended warranty or we would most likely be out
thousands of dollars because the Hondas break down ALL THE TIME and are VERY
EXPENSIVE to repair... that the PAINT would PEAL OFF if I did not get their
sealant because the factory was apparently totally incompetent, and that the
seats would fade, tear, and stain if I didn't get their special treatments.

Oh, and he reentered ALL our financial info and BYPASSED the preapproval.

Sure, we MAY have been able to get out of there in closer to an hour IF I
had rolled over and let him RAPE me financially.

Well, I did have my revenge. The owner of the dealership was a close friend
to some friends of ours. They gave me his home address. I wrote a letter
explaining our experience, and our dismay at the apparent "false
advertising" Honda had about their reliability... etc... it was a work of
art... I may also have copied US Honda... don't recall. Well, we receive a
personal reply, the ass got fired, and they fell over themselves being nice
for a couple of years until the dealership was bought out by a mega-chain
(but that is another story).

BTW, we ended up getting all but the dumbassed wheelcovers for a total cash
outlay of $250, if I recall - vs the $1500+ they were pushing (they had
already done some of the stuff to the car before we test drove it... though
the sticker didn't show it).

 

Or have a good sales guy why is a former engineer who is honest enough to
tell you the actual price to the dealer - any incentives available - and
explains that he adds $200 to that price.

He lets you leave to think about it - giving you his card - you check other
dealers without telling them WHERE you got your data... they nearly soil
themselves and finally say that their management won't allow them to sell
for that... have their "manager" come out to your car as you are leaving to
try to "come to an agreement"... but still not commit to that bottom line
number...

You go back a week or two later to the original guy, and the price is still
good - sign the paperwork and finish up in minutes.

Actually happened... at Rusty Wallis Honda, Garland, TX.

 

I find the best way to buy a new car is on the Internet. I thoroughly
researched the car first and knew exactly what I wanted. I also knew
the invoice price from Edmunds. I then looked for on-line dealers in
the Phoenix area. I received a quotation from the fleet manager in
one of the Phoenix area's largest dealerships. I had never even
visited that dealership. With quote in hand, I went to see them,
signed the papers, and the car was ordered. I did have a trade, so
they had to see it. I was very satisfied with the trade-in offer.
The only downside was, as others have mentioned, that I told them I
wanted the car just like it came from the factory. No add-ons! When
I went to pick it up they had put on mud flaps, door and fender guards
and a phony wax job. I couln't do anything about the wax job, but I
made them take the other stuff off while I waited. Other than that, I
was very happy with the deal. I have bought several vehicles by
letter or phone by getting quotes even before there was an internet.
I never deal with sales people face-to-face. I just get written
quotes from several dealers, and take the one I like. BTW, the price
I ended up with was $1,500 better than by using Costco at a local
dealer. At least half of that was getting more for my trade-in, which
was a '99 Accord EX V-6.

 

[snip]

I hope you didn't pay for the wax job. I would have told them in no
uncertain terms I wasn't paying for ANY of it, and if the added junk wasn't
removed and the car deliverable on the original terms in 30 minutes the deal
was over and complaints would be filed with the attorney general's office
and Honda for deceptive sales practices.

I know two people who made "No logos" a term of sale and one of them walked
out when the vehicle had the logo on it and they refused to remove it.
Stopped by the manager's office and told him why he lost the sale, asking
him how it felt to lose a sale out of sheer stupidty.

It's really too bad that car dealers are often so sleazy.

 

The other way to handle this kind of thing is to thank the dealership
for all that free stuff and insist upon the amount agreed upon. Make it
clear that the added nonsense is a deal breaker. Let the sales manager
see you get agitated. In almost every case they'll cave in. Maybe
they'll remove stuff that's easy to remove. But in our case we walked
away with about $150 worth of stuff (after the dealer tried to get $350
for these frills) that is nice to have. This tactic is especially
effective if you pick up the car at a time when service is closed. [Our
car was obtained from another local dealer because our dealer of choice
didn't have the exact model/exterior color/interior color combination
we wanted. The other dealer had installed a package of frills which we
knew our dealer hadn't paid for.]

 

I don't think the dealer was so sleazy. We always order new cars from
the factory. When they get to the dealership, they unload them off
the carrier and send them to the prep building. There they all get
the same treatment. Mud flaps, door and fender edge guards, Auto
Buddy wax treatment, and pin striping. I got there in time to stop
the pin striping. It would have been nice if they had discussed that
while I was signing the order. I also caught it before they put on
the dealer logo, although theirs is very unobtrusive, and not metal.
The Auto Butler cost $200 which I wasn't happy about, but it is
reapplied every six months for at least 3 years. I don't have the
contract in front of me. I couldn't get really mad at them about the
Auto Butler. I did get a really good price (well below invoice) on a
(at that time) hard to get EX V6 with Nav. I'm happy.

 

---snippy---

The logos that are put on with double sided tape, come right off with hot
water when new.

Earle



*** ***

 

Interesting. I went to pick up my van and they had "done me a favor" by
giving the vehicle a "detail job". This consisted of taking the previously
flawless Honda paint and swirling the hell out of it with an orbital buffer.
I was very mad, and showed them what happened before I drove it away
(paperwork had been signed already)... they claimed that it was that way
before... right... like I suddenly had my eyes fixed AFTER I had looked over
every inch of the vehicle to make sure there were no defects? I never went
back to them... and wrote a letter of complaint.

--
KWW