Buying a new car with cash

Why not finance through them, take whatever discount that brings, then pay it off the first month?

 

Also a good technique to use if you can secure lower interest rate financing.

 

All deals are inherently "cash" deals. The dealer gets a check from you, or a check from a bank or finance company. The only difference is they may get a check from you on the spot, which can add a smidgen of incentive.

If you're a cash buyer, they don't have to worry about your creditworthiness, but most dealers try to run credit checks for finance customers relatively early in the process, if possible.

Just as a finance customer could be hiding a poor credit rating, a self-proclaimed "cash" customer could be full of BS.

 

my father has always been self employed and has purchased several new cars over the years never took more than a few hours I'd finance and payoff quickly

 

How long are you going to keep the car?

Here's is what I used to do when I was self employed. I would figure on 40% depreciation within three years. So I would pay 40% down and borrow the rest. Yes, getting a loan is a PIA when you're self employed. But only borrowing 60% should make the deal easier to pitch, particularly to a credit union.

Good luck.

Dale

 

I just offered a dealer a cash deal for a new car, $52,000 check on the table, and they wouldn't touch it, but mostly because they are asking a markup on the car I want. I was in and out in less than ten minutes.

 

I offered to buy my Porsche all cash. I also tried to use it as leverage to get a discount.

They couldn't have cared less whether I cut them a check or financed the deal.

 

Exactly. Actually, the salesman could care less if the dealership makes more money. He gets his commission either way.

The only reason why a cash buyer is interesting to a salesperson is that he's serious and all the work dealing to sell the car won't go down the drain if financing falls through.

If you're looking at buying a cheap used car off an independant lot, it may matter (in fact, it may be the only way to get a sale done). For a Porsche, cash buyers are a dime a dozen. If you pass, they yell "Next!".

 

I don't care how you pay me,never did actually..........the kickback from most banks on finance contracts is in the realm of $200-300 nowadays........hardly a deal breaker.

 

We just bought a 2011 Maxda CX 9 today and went for the 0% for 60 months. We were going to pay cash but it seemed easy enough just to use their money. Took about 30 minutes.

 

Yep, same thing here too. I wanted a new car, went to the show room, test drove it, and within 25-30 min, all paperwork was signed, I was approved for the 0 down, 60 month loan, and I was driving away. Quick and simple, just the way I like it

 

A few years ago a friend went to buy a 430 Spider cash and the guys at the dealership told him they would rather finance him.

He said no no, cash only. He had his briefcase with $500K cash and again they spent 10 mins trying to talk him into financing the $450K Ferrari.

He then told them if you dont want my money that is fine and he walked out.

He has since bought a 360, used because he thinks all Ferrari dealers are tossers now.

 

2 is right. When financed, they always add a couple of points to your rate, that is their profit. Let's say you are good for 5 percent, they'll give you 7, that extra two goes in their pocket. Unless it's a rate advertised by the manufacturer, like in the case of the buyer of the Mazda, and the purchaser has the credit worthiness to get that rate, then they have to honor it. Otherwise, you're fair game.

Cash is nothing to them, unless it's a car they can't care less about and need to move it because it's rotting on the lot. That's why that guy was jerking PAP's friend's chain to get him to finance a half a million dollar car.

Never tell the salesperson how you're going to pay for the car, and never give him a number to work with. He will ask you this right off the bat to determine if you're a cash buyer, payment buyer, or a trade in buyer so he can know what kind of numbers to throw at you.

If you say "I'm going to finance it", he knows you're a payment buyer and will be ready to negotiate on a payment and disregard the price of the car. You'll be surprised at how many people see the payment they're looking for and completely forget about negotiating the price of the car. Some people care about how much they will get for a trade in, so the salesmen will give him top dollar for his car to make him happy so he can **** on him on the purchase price of the new one.

Best thing to do, "I'm most likely going to finance it, but let's talk about the price of the car"...and remember, he'll ask you for a figure, don't give it to him, keep saying it's too high for you, and be ready to walk out the door..that's when they give you their best price.

Once you're satisfied with the price, he'll ask you to run your credit so he can determine what kind of payment he can get you, which is a crock of **** because by law the salesperson doesn't have the authority to guarantee you a rate, that's the job of the finance manager, the payments he's going to come at you with are bull****. Ever wonder why the salesperson can give you a payment, say 500 a month, and if you don't like it, he'll cross it out on the sheet and ask you "how about if I do 490?"....it's nonsense..this is when you open your briefcase and make it rain on these b i t ch es.

 

new Boss 302? They turned down 52K on the table? ****, these things are hotter than I thought...

 

You shouldn't be surprised. Think about it, these things are hot, they will get somebody to finance it. So on top of the money they will make over invoice, plus markup, they will make an additional couple of percentage points in interest over the life of the loan because Ford isn't offering any special incentives or low APR's on these things, plus they'll get kickbacks for giving the lending institution business. If some dude is going to come in and offer sticker price in cash for a car that's hot, why would they take it?