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Buying a car with cash
Posted on 11/27/19 at 9:48 am
Posted on 11/27/19 at 9:48 am
Looking to buy a new car from dealership (Toyota Carolla). I may pay with cash. Does paying with cash impact my leverage when negotiating the price?
This post was edited on 11/27/19 at 9:56 am
6
Posted on 11/27/19 at 9:50 am to danilo
Generally, no. Dealership may have incentives tied to financing.....sometimes, you can get a better deal by taking the incentives that come with financing, then paying off the loan in full after 2-3 months. (Assuming that the loan terms do not require a minimum number of payments in order to make the deal.)
Posted on 11/27/19 at 9:55 am to hungryone
quote:
Generally, no. Dealership may have incentives tied to financing
I had a hunch that’s way it is. Thanks.
Posted on 11/27/19 at 10:10 am to hungryone
It makes it much harder for them to make money on the back end so it's usually an annoyance for them.
Posted on 11/27/19 at 10:37 am to danilo
Negotiate the price without indicating how you're going to pay. Just focus on the price first,and only the price.
Posted on 11/27/19 at 11:44 am to castorinho
so how much a month can i get you in this ride?
Posted on 11/27/19 at 12:07 pm to castorinho
quote:
Negotiate the price without indicating how you're going to pay. Just focus on the price first,and only the price.
That won’t work if there are different rebates tied to purchase/payment method (unless you strictly specify negotiation is limited to dealer discount only).
Posted on 11/27/19 at 12:29 pm to danilo
Buy a used car.
They are all used when driven off the lot.
They are all used when driven off the lot.
Posted on 11/27/19 at 12:31 pm to makersmark1
Precisely the reason I buy used underwear.
Posted on 11/27/19 at 12:45 pm to castorinho
quote:
Negotiate the price without indicating how you're going to pay. Just focus on the price first,and only the price.
I feel like he should do the opposite. Let the dealership know you want financing and negotiate on monthly note. Say you want the vehicle as cheap as you can get it.. but then get into a note with some crappy terms so the dealer thinks they will make their money. Then just pay off the loan in full a short time later.
Posted on 11/27/19 at 12:45 pm to Chad504boy
quote:
so how much a month can i get you in this ride?
The four squares!
Posted on 11/27/19 at 12:48 pm to makersmark1
quote:
Buy a used car. They are all used when driven off the lot.
I am looking for a Toyota Carolla or a Honda Civic. I see very little difference in price for a new vs year or two old with 25k miles. I figure I might as well pay 2k more and get a new one
Posted on 11/27/19 at 2:30 pm to danilo
quote:
I am looking for a Toyota Carolla or a Honda Civic. I see very little difference in price for a new vs year or two old with 25k miles. I figure I might as well pay 2k more and get a new one
Toyota and Honda hold their value reasonably well on the used market so you’re correct that you may just be better off buying new and getting the full factory warranty along with any special interest financing (captive rates typically better on new than used).
Luxury cars with the crazy depreciation are best purchased used.
Posted on 11/27/19 at 2:31 pm to PhiTiger1764
This is 100% the way to go
Posted on 11/27/19 at 2:58 pm to PhiTiger1764
quote:not really. Just because you tell him you're going to finance doesn't mean he's going to give you the best price and just screw you on the interest. He can screw you on both.
I feel like he should do the opposite. Let the dealership know you want financing and negotiate on monthly note. Say you want the vehicle as cheap as you can get it.. but then get into a note with some crappy terms so the dealer thinks they will make their money. Then just pay off the loan in full a short time later.
You negotiate price first. The when you tell him you'll pay cash and he tries to convince you to finance, then you can get tell you'll finance if he comes even lower on the price. Then you can take the incentive and pay it off a month or two after.
Posted on 11/27/19 at 5:33 pm to castorinho
Why not negotiate the price, give them the a down payment amount that you are thinking.
They give you all the deals.... rebates etc ..
Then before signing say you came up with a larger down payment. Say 75% of what you were wanting to pay in cash.
Still have the financing... Still get the rebates...less interest paid.
??
They give you all the deals.... rebates etc ..
Then before signing say you came up with a larger down payment. Say 75% of what you were wanting to pay in cash.
Still have the financing... Still get the rebates...less interest paid.
??
Posted on 11/28/19 at 10:07 am to danilo
quote:
vs year or two old with 25K miles
I learned about that the hard way through trial and error.
I bought a used 1994 Toyota Corolla (back in 1995) from Enterprise Car Sales. It had 26K miles and still was under the factory warranty for 9K more.
Well, it proved to be a lemon and by 88K it was undriveable. Even with an engine overhaul it couldn't pass emissions inspection and the apartment management kept threatening to tow the car off the property unless I got a valid sticker!
Bottom line, buy new...even if you have to finance it.
Posted on 11/28/19 at 11:05 am to tarzana
quote:
I learned about that the hard way through trial and error.
I bought a used 1994 Toyota Corolla (back in 1995) from Enterprise Car Sales. It had 26K miles and still was under the factory warranty for 9K more.
Well, it proved to be a lemon and by 88K it was undriveable. Even with an engine overhaul it couldn't pass emissions inspection and the apartment management kept threatening to tow the car off the property unless I got a valid sticker!
Bottom line, buy new...even if you have to finance it.
One bad experience 25 years ago really doesn't make a rule. I don't know if you had that car checked out and maybe that wouldn't have saved you anyway. But people who always buy new and finance are setting their money on fire with every transaction. I love cars. I've had a bunch over the years and I have a bunch now. But unless you're (successfully) playing in the collectible market, you'll seldom come out ahead. About the best you can do is try to lessen your losses when it comes to depreciation. And a *well maintained*, highly ranked 2+/- year old used vehicle is generally the best way to do that.
Buying used has never scared me. But I have a great mechanic that thoroughly checks out any used vehicle that I'm considering. If you can get a super deal on a new one, that's fine. And buying the odd new car every now & again can work if you're not one of those "trade for new every three years" types. But for average grocery-getter/daily drivers, I have many other things that I'll waste my money on.
Posted on 11/28/19 at 5:17 pm to danilo
quote:
Looking to buy a new car from dealership (Toyota Carolla)
Last year my wife was planning to buy a Toyota from their dealership in New Orleans, with cash. When I walked into the office I saw a credit card machine on his desk. Asked if I use a credit card without any fees, he says no fees up to either 7 or 8K.
Figured why not, I can keep some of my cash for another month and get thousands of miles.
Posted on 11/28/19 at 6:36 pm to TigerintheNO
I did the same: paid the down payment in CC to collect the miles, paid off CC the next day. Took out a dirt cheap loan w USAA over 24 mos. interest over the life of the loan was something like $125. Well worth it to keep my cash working elsewhere instead of having morbid fear of debt/a monthly note.
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