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Old 04-30-2011, 05:12 PM
 
Location: Not far from Fairbanks, AK
16,569 posts, read 28,661,948 times
Reputation: 12330

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Quote:
Originally Posted by Tennesseestorm View Post
Within about 4-8 weeks, we are likely going to be purchasing a brand new vehicle 2011-2012, without financing it. I am unsure of what I am going to purchase, will likely be between a $25K-$35K car/truck.

I read somewhere where dealers really dont really like for you to pay for the entire car because it knocks them out of making a profit on financing, but I always thought most people did their own financing like through their own bank?

I have emailed a couple dealers trying to get some info on options and special ordering. One kept bugging me by email, even saying they didnt mean to "bombard" me with emails. I replied and said it was OK and asked about a certain option on a certain model and if it was possible for me to get it that way and I did mention that it would be cash purchase (he had asked in the email if I needed help with financing). He has not replied as if they either think I am bluffing or they dont want to sell one straight out.

I am wondering now; do I get a price in writing before I tell them I am paying cash? I am wondering if I will not get as good of a price if I purchase straight out?

At what point in the sale (after I pinpoint what make/model/options I want) to the salesman that I dont want to finance?

Thanks.
This is what I would do:

a. Figure exactly how much the dealer pays for the automobile, including destination charge.

b. I look-over at the automobile on the lot (visual inspection). By then there will be a person or two asking you to drive the car if you like.

c. Then I write my phone number on a piece of paper, and then tell the sales person the following: " take $3,000 off the top, and I buy it today. Here is my phone number if you want to sell it, but only call me within one hour from now," and walk away. The dealer does not care if you have cash or not.

That $3,000 should cover the cost you for the paperwork and such. But you have to know who much the dealer is paying for the automobile before you ask. He may say that he will take $1,000 off the top, so maybe you can bring it to $1,700

The problem with buying something that you want is that the dealer will play with your desires to buy the car.
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Old 04-30-2011, 05:31 PM
 
Location: Purgatory (A.K.A. Dallas, Texas)
5,010 posts, read 13,147,325 times
Reputation: 2440
Quote:
Originally Posted by RayinAK View Post
This is what I would do:

a. Figure exactly how much the dealer pays for the automobile, including destination charge.

b. I look-over at the automobile on the lot (visual inspection). By then there will be a person or two asking you to drive the car if you like.

c. Then I write my phone number on a piece of paper, and then tell the sales person the following: " take $3,000 off the top, and I buy it today. Here is my phone number if you want to sell it, but only call me within one hour from now," and walk away. The dealer does not care if you have cash or not.

That $3,000 should cover the cost you for the paperwork and such. But you have to know who much the dealer is paying for the automobile before you ask. He may say that he will take $1,000 off the top, so maybe you can bring it to $1,700

The problem with buying something that you want is that the dealer will play with your desires to buy the car.



And people wonder why salespeople and dealerships tend to be rude.


You get what you give.
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Old 05-02-2011, 08:35 AM
 
Location: Birmingham
11,787 posts, read 13,303,304 times
Reputation: 10015
Quote:
Originally Posted by getmeoutofhere View Post
And people wonder why salespeople and dealerships tend to be rude.


You get what you give.
Amen to that. People need to realize that we are all sellers and consumers and spend time on either side of the table throughout our lives.
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Old 05-02-2011, 08:38 AM
 
Location: Sierra Vista, AZ
16,134 posts, read 20,767,260 times
Reputation: 8292
I buy all of my cars for cash. The first thing you need to realize is that you are costing them thousands in loan originization fee,s, interest and all of the other things they add on to make the car ultimately cost triple what you paid for it. Don't mention how you are paying for it until you have agreed on a price
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Old 05-02-2011, 08:47 AM
 
Location: Birmingham
11,787 posts, read 13,303,304 times
Reputation: 10015
Quote:
Originally Posted by Boompa View Post
I buy all of my cars for cash. The first thing you need to realize is that you are costing them thousands in loan originization fee,s, interest and all of the other things they add on to make the car ultimately cost triple what you paid for it. Don't mention how you are paying for it until you have agreed on a price
Triple what you paid for it, really? That is a gross exaggeration. If paying cash is even an option for you on a new car then chances are good that you have decent credit and with rates as low as they are you aren't going to come anywhere near paying triple.

Also, interest is paid to the lending institution not the dealer. They'll only see that interest if you pay out the loan one payment at a time and not trade it in early or pay it off with cash layer. The dealer gets a small percentage ofthe reserve for signing you up on the loan but that is paid up front.

Most everywhere and every state should be no penalty for early payoff with simple interest loans. So if you sign up for 84 months at 12.9% but hit the lotto one week later and pay the car off you will only have paid interest for those few days.
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Old 05-02-2011, 11:03 AM
 
Location: Sierra Vista, AZ
16,134 posts, read 20,767,260 times
Reputation: 8292
Quote:
Originally Posted by Tourian View Post
Triple what you paid for it, really? That is a gross exaggeration. If paying cash is even an option for you on a new car then chances are good that you have decent credit and with rates as low as they are you aren't going to come anywhere near paying triple.

Also, interest is paid to the lending institution not the dealer. They'll only see that interest if you pay out the loan one payment at a time and not trade it in early or pay it off with cash layer. The dealer gets a small percentage ofthe reserve for signing you up on the loan but that is paid up front.

Most everywhere and every state should be no penalty for early payoff with simple interest loans. So if you sign up for 84 months at 12.9% but hit the lotto one week later and pay the car off you will only have paid interest for those few days.
Most dealers have kickback schemes with the "institutions " you refer to. They collect thousands in fees and other goodies. You pay triple for your house too. That is why I will skip the game and buy for cash, usually I replace both cars every 3 years. That's OK they need people like you, good luck
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Old 05-02-2011, 12:26 PM
 
Location: Birmingham
11,787 posts, read 13,303,304 times
Reputation: 10015
Quote:
Originally Posted by Boompa View Post
Most dealers have kickback schemes with the "institutions " you refer to. They collect thousands in fees and other goodies. You pay triple for your house too. That is why I will skip the game and buy for cash, usually I replace both cars every 3 years. That's OK they need people like you, good luck
Ah okay because you can finance a car for fifteen or thirty years like you can a car.

Basic math skills would tell you you are not going to pay three times as much for a car under a typical new car loan of 4.9. But only poor people like me have to take out loans for cars and homes. E-ballers pay cash for everything.
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Old 05-02-2011, 04:19 PM
 
Location: Purgatory (A.K.A. Dallas, Texas)
5,010 posts, read 13,147,325 times
Reputation: 2440
Quote:
Originally Posted by boompa View Post
most dealers have kickback schemes with the "institutions " you refer to. They collect thousands in fees and other goodies. You pay triple for your house too. That is why i will skip the game and buy for cash, usually i replace both cars every 3 years. That's ok they need people like you, good luck

l.

O.

L.
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Old 05-02-2011, 10:36 PM
 
Location: Northeast Tennessee
7,305 posts, read 23,423,369 times
Reputation: 5487
Quote:
Originally Posted by Tennesseestorm View Post
Toyota, Chevrolet, Cadillac, Buick, Chrysler, Dodge, Jeep dealers (northwest side of town) were not impacted.
I was wrong, all of those hail damaged as well!
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Old 12-01-2012, 09:07 PM
 
1 posts, read 3,330 times
Reputation: 10
Quote:
Originally Posted by ferretkona View Post
Friend of mine bought his last new truck off the internet for cash. He paid a third of what I paid for my truck.
may I please ask where you friend is made the purchase? everything I find seems to be a gimmick.
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