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Paying cash for a new car
Posted on 8/28/13 at 8:02 am
Posted on 8/28/13 at 8:02 am
From what I've seen quite a few MB posters say they will only pay cash when it comes to purchasing a car. What's the typical amount a dealer will discount for their "cash price" and how and when do you introduce that into the negotiation? Do you get the dealer down as low as possible and then play the "if I pay cash today..." card or will that just piss them off?
4
Posted on 8/28/13 at 8:11 am to sneakytiger
I don't think they're really worried about cash. You'd probably get a better deal if you finance through them (if they have any discounts for doing so) and then pay it off right after.
I've seen incentives for financing through Ford Credit recently. I'd assume that other car companies have similar incentives.
I've seen incentives for financing through Ford Credit recently. I'd assume that other car companies have similar incentives.
Posted on 8/28/13 at 8:13 am to sneakytiger
quote:
quite a few MB posters say they will only pay cash when it comes to purchasing a car
You will also see many saying that with rates so low, always finance.
Posted on 8/28/13 at 8:14 am to sneakytiger
No discount for cash sale, and it will actually decrease your bargaining ability, so keep it a secret as long as you can. The dealership is wanting you to finance the deal, as they make money on that as well, so will sometimes give you a better price on the actuall car if they know they will make it up in financing
Posted on 8/28/13 at 8:17 am to SLafourche07
quote:
I don't think they're really worried about cash. You'd probably get a better deal if you finance through them (if they have any discounts for doing so) and then pay it off right after.
This is the right answer. I would not tip my hand either way until you absolutely had to.
Posted on 8/28/13 at 8:20 am to Ranger198
And who gives a shite if you piss them off? What are they gonna do, not sell you the car?
Posted on 8/28/13 at 8:28 am to Vrai
you're stupid to pay cash for a car right now.
With max interest rates at probably 3% for a new car, finance it and stick that cash into an investment earning 5-8% return.
With max interest rates at probably 3% for a new car, finance it and stick that cash into an investment earning 5-8% return.
Posted on 8/28/13 at 8:40 am to Im4datigers
Well my thinking was if paying cash got me 10-15% back on the sale price it might be worth it. I'm pretty conservative, especially when it comes to leveraging myself over a depreciating asset. Sounds like the only incentive the salesmen have is to push for in house financing... guess I'm not that surprised.
Posted on 8/28/13 at 8:55 am to sneakytiger
If it was me I would just pay cash for it and be done. You will prob not get a discount for paying all now though.
This post was edited on 8/28/13 at 8:56 am
Posted on 8/28/13 at 10:22 am to sneakytiger
You get a better deal (at least I did on my 2013 Lexus) if you let them sell you their in-house financing plan.
Just make sure there is no prepayment penalty and then pay it off as soon as the paperwork clears. I estimate it saved me about $400 off the price I would have paid if I told them I was going to pay cash.
Just make sure there is no prepayment penalty and then pay it off as soon as the paperwork clears. I estimate it saved me about $400 off the price I would have paid if I told them I was going to pay cash.
Posted on 8/28/13 at 10:49 am to sneakytiger
quote:
Well my thinking was if paying cash got me 10-15% back on the sale price it might be worth it.
Yea, that ain't happening. Why would they give you a discount to not make money on the backend?
Posted on 8/28/13 at 11:57 am to LNCHBOX
Paid cash for my last new truck ('06) but waited till after we agreed on price (when they started explaining finance options) to tell them.
Bought a new car for my daughter ('04) and when I said I wanted to pay cash they informed me I could save $5,000 financing through ford. I financed the minimum allowed and paid it off after the first statement.
You don't save anything but hassle paying cash.
I've found you can fly to Houston, buy a vehicle, drive back, and still save several thou over any local dealers (NO, BR, Cov, etc). They can't compete.
Posted on 8/28/13 at 12:42 pm to Im4datigers
quote:
stick that cash into an investment earning 5-8% return.
Care to name one?
Posted on 8/28/13 at 1:22 pm to Im4datigers
quote:
With max interest rates at probably 3% for a new car, finance it and stick that cash into an investment earning 5-8% return.
Right
I would advise just putting enough down to where you'll never be underwater on the vehicle and then financing the rest.
If you financed 25K and put the 25K in investments as you said, you'll come out about 7K ahead even on the conservative 5% end of that.
Posted on 8/28/13 at 1:30 pm to Powerman
Ever heard of the stock market?
Posted on 8/28/13 at 1:34 pm to Powerman
Wife got a 2012' Crosstour last year. 22992 plus tt&l, 0.9% for 60/mo, pay around $35/mo in interest I believe.
If I can't make $400/yr off 23k, I don't deserve to have 23k in the first place.
JM2C
If I can't make $400/yr off 23k, I don't deserve to have 23k in the first place.
JM2C
Posted on 8/28/13 at 1:41 pm to Im4datigers
quote:
Ever heard of the stock market?
Yeah...what about it?
Posted on 8/28/13 at 3:33 pm to Ranger198
Just bought a new Ford F150 this past Saturday. We were going to pay cash, but no discount, but got rebate if we financed. So only have to make three payments starting in October, so first will probably be the lump sum, leaving just enough to make last two payments.
Posted on 8/28/13 at 4:03 pm to Kingwood Tiger
quote:
Just bought a new Ford F150 this past Saturday. We were going to pay cash, but no discount, but got rebate if we financed. So only have to make three payments starting in October, so first will probably be the lump sum, leaving just enough to make last two payments.
Went through that recently with Ford, and what they tell you at the dealership is crap, read your loan documents, there is no pre payment penalty, I called Ford credit and was told the same thing, turns out the 3 month crap they tell you at the dealership is tied commission and not facts, pay the damn thing off and be finished with it
Posted on 8/28/13 at 4:03 pm to Kingwood Tiger
Grouper...you did great. They offered you a good amount for the trade..and the Price of what you purchased was fair. Good buy.
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