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I've always read on the internet that you should never say to the dealer that you are paying cash for the vehicle, supposedly to get a better deal, they believe that if you claim you are paying cash, they will raise the price of the vehicle, how true is this? If they raise the price, I simply gtfo and they lose my business, simple as that.
Seems like a big waste of time imo in the end, they are smarter than you, they have more experience than you, and they know more about the car industry than you no matter how many articles you've read, how many internet forums you've consulted and how knowledgeable and expert you believe yourself to be.
You are in their territory, you playing games, claiming you don't know yet how you will pay? believe me, they know you are bull****ing and will pay cash, they know lol you think they don't know all these tricks and advice you read on the interwebz on HOW TO BEAT THE DEALER? lol
big ass waste of time imo just go, ask for the real price, and then say you are paying cash, if they claim that if you pay cash, the final cost will be higher, then simply leave, they just lost thousands of dealers for being greedy bastards trying to make a few more
I never play games when making any purchase.
I have a set amount I will pay, the business takes it or not.
If they take it the purchase is done, if not I walk away.
I'm not sure what the point of your post is.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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I love to play games when buying a car, it's part of the fun. The dealers prefer to do the loan, because they make more, but when paying cash I still will tell them ahead of time. They still want me to do a credit application but I'll refuse. They figure if their price with taxes and license is above my limit I can get a small loan. The most fun is to say I have x dollars to spend and that's what I'll pay, out the door. After a couple of hours I usually get it, if not I'll walk away.
The only time you could say that's sort of true is if there's a factory rebate that requires factory financing. The price of the car didn't really change though. You just either get or don't get the factory rebate is all.
About how much did you guys undercut/low-ball the dealer when you bought with cash? 10%? 20%? Other?
Looking for pointers, last time I walked into a used car dealer I was a dumb kid about 21 years old. But I'm older and wiser this go around, so definitely wanna save money and not over-pay (as is the goal of the dealer).
I recently bought a new vehicle, went in, negotiated the price, and then after everything was agreed to wrote a check for the total amount. If I'm ever asked how do I plan to pay for it I just say I haven't decided yet.
The reason it matters is because money is made in two ways. How much the car sells for, and how high they can get the % rate on financing. Shady dealers will act like they are giving you a deal (usually by the price) only to make more money off you with a higher rate later in the buying process. If they already know you won't be financing your purchase it comes down to the salesman and the dealership only making money off the cash price.
These days there are so many websites and a wealth of information that you should already know what you are willing to pay. You should know what your car has been selling for, and what you are willing to pay before you set foot on a lot. Any decent salesman will usually appreciate not beating around the bush, to get a quick sale in. If not, find another one, and don't let one screw with you in any ways.
In general, dealers will make more money when they can get you to finance (bird-dog fee, negotiated deal with lender, etc)
so do what you have to do to get the lowest (out the door) price. Then you can pay off the loan next week with the cash you were planning to use.
On cash vs loan, I have heard it both ways. As others mentioned, dealer can make money on loan, so they might agree to lower price with loan. But I don't think this is really true. If you can get a lower price with a loan, and then just pay off the loan (assume there is no early payoff fee) and buyer will be ahead.
I also hear others say that paying cash gets better pricing because dealer don't have to spend as much time and paperwork on your transaction.
In any case, with internet today, car negotiation is not like it was >10 years ago. Even before you step foot, you can already get email quote with prices that is 5-10% below invoice, depending on the car. So in the showroom, there is not much room for negotiation, maybe only couple hundred dollars.
In my latest car purchase earlier this year, I went in ready to pay cash. After the negotiation is completed, dealer asked me if I want to do 0% interest loan. It was some special offered by manufacturer. So I ended up doing the loan.
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