Just how much does cash talk? (buy, tax, Toyota, 2005) - Automotive -Sports cars, sedans, coupes, SUVs, trucks, motorcycles, tickets, dealers, repairs, gasoline, drivers... - City-Data Forum

sundrop · 11-10-2009, 04:25 PM

When going into a dealership and wanting to deal in cash, how much leeway do you have when buying both a new and used car. What I am asking is, how much would you take off the top for dealing in cash?

M3 Mitch · 11-10-2009, 04:32 PM

I don't know about dealers per se, but if you are buying say a 1-owner used car from the original owner directly (which is going to get you more car for your money than new, and unlikely you will have any more mechanical issues with it...) cash is king.

You wouldn't normally have a suitcase full of 100's of course, normally a cashier's check, but someone who has the cash up front no BS is always preferable.

A lot of dealers make a considerable amount of their profit off in-house financing so they may not be so keen on your cash&carry program.

You didn't ask, but since it's November already, I will suggest waiting till "Wolf Week" - the week after Christmas - to buy. Depends on your state, but in many places dealers will be looking at paying tax on inventory on hand as of New Year's Day, they may have some sales target for December or the entire CY that they need to move one more unit to meet - if you come in during Wolf Week and have cash, frequently people will really want to make a deal with you. It has worked for me.

ShelbyGirl1 · 11-10-2009, 04:33 PM

Cash isn't always a good thing. In fact, dealerships will make more on the car if you take a loan on any portion of the car. We are dealing with a dealership now that will take an extra $1000 off the car if we were to use their financing. Which we will probably do and pay off the car immediately as soon as the first payment is due.( There is no pre-payment penalty) $1000 dollars is a $1000.
So basically, cash isn't going to help you. If it makes any difference at all to the dealership...it is in a negative way.
Now, on a privately owned car, cash talks.

GTOlover · 11-10-2009, 04:35 PM

ohh dealers hate cash now they want to lock you into leases and get financing now instead of buying it upfront in cash.

marmac · 11-10-2009, 04:52 PM

I have bought several (7) new cars in my life.

Two were cash ( all were w/o a trade in)

My last 2 new cars showed I was naive in believing I could get a better deal paying cash.

I bought the last 2 with cash, but could have saved a little if I had financed.

I didn't cuz I could pay cash and didn't want a mortgae on my title for 6 years or even 6 days.

little elmer · 11-10-2009, 04:57 PM

Yeah, the financing is where we (I'm in parts, don't kill me) make it. In fact, finance will lie about your rate and charge you more - ask for the proof.

Edit: Just a thought, if they're offering a deal to finance, go ahead and sign - then pay it off next month. You got your cake and ate it, too.

PurpleLove08 · 11-10-2009, 05:14 PM

When my parents paid cash on my first car, let's just say the dealer's weren't happy.
They wanted to finance the car and all that good stuff.

I think like another poster said, it tends to work more on older used cars.

My first car was a 2005 Toyota Corolla and this was about 2 1/2 years ago.

ShelbyGirl1 · 11-10-2009, 05:18 PM

Quote:

Originally Posted by little elmer

Yeah, the financing is where we (I'm in parts, don't kill me) make it. In fact, finance will lie about your rate and charge you more - ask for the proof.

Edit: Just a thought, if they're offering a deal to finance, go ahead and sign - then pay it off next month. You got your cake and ate it, too.

More than once we have caught the finance guy in a little white lie...higher interest rate than what was quoted! Then they all feign ignorance on the mistake

It is why we have no qualms about paying off the loan immeadiately.

GTOlover · 11-10-2009, 05:22 PM

Quote:

Originally Posted by ShelbyGirl1

More than once we have caught the finance guy in a little white lie...higher interest rate than what was quoted! Then they all feign ignorance on the mistake

It is why we have no qualms about paying off the loan immeadiately.

yeah it took me 3 years of making monthly payments to GMAC and now I have owned my car for just about a year now free and clear and it a good feeling not having to give up a bunch of my hard earned money every month now I can buy other things like long tube headers and custom polished CAI

sundrop · 11-10-2009, 05:29 PM

Thanks for the replies....

DH nor I have the desire or strength to play that financing game with them. They can save the snake oil sales for someone else. We aren't in a position right now that we must buy. It is something we would like to do, so we have that on our side. But, as I type this it will be a cash and carry deal. They need to make that sale, and we can buy...the choice is theirs.