Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Automotive
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-04-2012, 12:56 PM
 
2,528 posts, read 1,656,169 times
Reputation: 2612

Advertisements

Hello.
There is a dealership that offers a zero financing (from the manufacturer). Would the dealership like to sell the car to somebody who will sign the papers for the zero finance from the manufacturer or, for the same price, to somebody with a cash envelope?
What is more gainful for the dealership?
Thank you.
Reply With Quote Quick reply to this message

 
Old 11-04-2012, 01:11 PM
 
Location: WI
3,961 posts, read 11,016,490 times
Reputation: 2503
that "0% financing" may be in lieu of a rebate, and with the low rates out there from other lenders that zero % may not in fact be the best deal for the consumer. Assuming you're talking new car, you're also talking more then $15k; and others can correct me as it's been awhile since i've been in the biz but there is a certain limit that cash can be accepted without needing additional paperwork (IRS). So my guess is that from an F&I dept standpoint, they'd rather first finance the car as even with using your lender they usually get a paperwork comp. Next comes a check from yourself, easy to do and the dealership still sold the car. And again i'd think cash is last, but that is only an opinion
Reply With Quote Quick reply to this message
 
Old 11-04-2012, 01:12 PM
 
2,025 posts, read 4,172,754 times
Reputation: 2540
if you can use someone else's money for free, why would you show up with a cash envelope? And why would you care which is better or worse for the dealer?
Reply With Quote Quick reply to this message
 
Old 11-04-2012, 01:18 PM
 
2,528 posts, read 1,656,169 times
Reputation: 2612
Quote:
Originally Posted by GnomadAK View Post
if you can use someone else's money for free, why would you show up with a cash envelope? And why would you care which is better or worse for the dealer?
The question is, can I get with the cash envelope more rebates? And what will be the reason for that? Why would a dealer prefer cash if he will get the same amount from the lender (the manufacturer)?
Reply With Quote Quick reply to this message
 
Old 11-04-2012, 01:27 PM
 
2,025 posts, read 4,172,754 times
Reputation: 2540
Could you take that cash and invest it and make more than the rebate?
Reply With Quote Quick reply to this message
 
Old 11-04-2012, 02:35 PM
 
8,402 posts, read 24,215,373 times
Reputation: 6822
Cash is only good if the business can save money by not paying credit fees, or if the business wants to hide the money.
Reply With Quote Quick reply to this message
 
Old 11-04-2012, 06:22 PM
 
Location: SF Bay Area
13,520 posts, read 22,118,032 times
Reputation: 20235
Are you asking whether you can get a better price for the car based on whether you go with manufacturer financing or pay cash yourself? I'm sure the dealer gets some bonus (finder's fee et al) from the lender.
That being said, why not just negotiate the price w/o telling the dealer how you are going to finance it until after you've agreed to a price?
Reply With Quote Quick reply to this message
 
Old 11-04-2012, 06:32 PM
 
16,393 posts, read 30,261,314 times
Reputation: 25501
Quote:
Originally Posted by mash123 View Post
Hello.
There is a dealership that offers a zero financing (from the manufacturer). Would the dealership like to sell the car to somebody who will sign the papers for the zero finance from the manufacturer or, for the same price, to somebody with a cash envelope?
What is more gainful for the dealership?
Thank you.

Often, the 0% is in lieu of the rebate.

Personally, I would ask the dealer the cash price versus the 0% financing price. Then make the decision.
Reply With Quote Quick reply to this message
 
Old 11-04-2012, 06:59 PM
 
8,402 posts, read 24,215,373 times
Reputation: 6822
Quote:
Originally Posted by jaypee View Post
Are you asking whether you can get a better price for the car based on whether you go with manufacturer financing or pay cash yourself? I'm sure the dealer gets some bonus (finder's fee et al) from the lender.
That being said, why not just negotiate the price w/o telling the dealer how you are going to finance it until after you've agreed to a price?
In other businesses the retailer pays the lender a percentage of the loan amount to secure 0% financing.
Reply With Quote Quick reply to this message
 
Old 11-04-2012, 07:04 PM
 
Location: Woodfield
2,086 posts, read 4,129,693 times
Reputation: 2319
Quote:
Originally Posted by ranger17 View Post
and others can correct me as it's been awhile since i've been in the biz but there is a certain limit that cash can be accepted without needing additional paperwork (IRS)
I paid cash for a car last year, $24k, no issues. There may have been an extra form to sign, but I don't recall anything in particular.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Automotive

All times are GMT -6. The time now is 09:10 PM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top