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Does paying with cash vs check or card for big purchases still hold sway?
Posted on 5/20/24 at 3:44 pm
Posted on 5/20/24 at 3:44 pm
For example, a used car listed at 10K: Would a dealership knock a decent amount off the bottom line in this situation?
14
Posted on 5/20/24 at 3:48 pm to TrapperJohn
No.
Why would they?
Why would they?
Posted on 5/20/24 at 3:48 pm to TrapperJohn
Nope. They don't care how you pay them because it doesn't make any difference to them. It's probably better for them if you finance, especially if it's through their lending arm (Honda Financial etc).
I put a down payment on my wife's car with a credit card even though I had the money. I asked if they charged a fee first and figured I might as well get the cash back.
I put a down payment on my wife's car with a credit card even though I had the money. I asked if they charged a fee first and figured I might as well get the cash back.
Posted on 5/20/24 at 3:48 pm to TrapperJohn
dealers want you to finance. you aren't going to get a better price with cash (most of the time)
but you should also negotiate final price before even discussing how you are going to pay. then its irrelevant
but you should also negotiate final price before even discussing how you are going to pay. then its irrelevant
Posted on 5/20/24 at 3:48 pm to TrapperJohn
No. Why would they? They’ll likely give you the best deal (purchase price) if you finance it thru them.
Posted on 5/20/24 at 3:51 pm to TrapperJohn
I’d imagine paying with literal cash is an annoyance for them.
Posted on 5/20/24 at 4:03 pm to TheWalrus
Gracias for everyone's input. I'm buying my kid a car and I haven't haggled in a while.
Posted on 5/20/24 at 6:27 pm to TrapperJohn
I think this depends on the dealership. If it’s part of a large auto group, then no. If it’s the guy who runs his own lot and wears a cowboy hat on commercials, then you can be pretty sure he’d take cash off the books and give you a better deal.
Posted on 5/20/24 at 6:58 pm to TrapperJohn
Most auto places charge extra to pay with a card.
They are literally the ones paying for your points.
They are literally the ones paying for your points.
Posted on 5/20/24 at 7:12 pm to Drizzt
quote:
I think this depends on the dealership. If it’s part of a large auto group, then no. If it’s the guy who runs his own lot and wears a cowboy hat on commercials, then you can be pretty sure he’d take cash off the books and give you a better deal.
Spot on. In the car business, for national chains and larger dealers, cash is no longer king. They make more money when you finance through them.
Posted on 5/20/24 at 8:34 pm to Drizzt
quote:
If it’s the guy who runs his own lot and wears a cowboy hat on commercials, then you can be pretty sure he’d take cash off the books and give you a better deal.
Problem there is, that’s the guy you don’t want to be buying a car from in the first place.
Posted on 5/21/24 at 9:22 am to TrapperJohn
I have had good luck with contractors giving cash discounts. I think it makes sense that services will be more likely to provide cash discounts vs purchasing a product.
Posted on 5/21/24 at 4:17 pm to TrapperJohn
Car dealerships are probably the only place that don't prefer cash. The finance guy makes money off of the spread between the bank's rate and what he quotes you. Last time I purchased a new vehicle I went in with a pre-approval from my credit union. The finance guy quoted me his best rate from Hancock/Whitney and I told him I had a better rate. He then matched the pre-approval rate. I probably should have haggled him a little and told him for the same rate I'd rather be able to auto-draft from my checking account.
I would bet if you went into someplace like Rooms to Go where they have zero percent financing and offered to pay cash, they would give you a few percentage points discount.
I would bet if you went into someplace like Rooms to Go where they have zero percent financing and offered to pay cash, they would give you a few percentage points discount.
Posted on 5/21/24 at 4:33 pm to TrapperJohn
It should be illegal but dealerships get a kickback from the bank they finance through. Never tell them you’re paying cash until you have agreed on a price.
Posted on 5/21/24 at 4:36 pm to CubsFanBudMan
I just bought a new car 2 months ago and the dealer wouldn't let me finance through them lmao. It was so fricking weird. They said they would ONLY do a cash deal since I was planning on registering the car in a different state.
Never heard anything like it. This was a honda franchise dealer.
I asked the salesman if his finance guy knew he was telling me it was cash or nothing. He said that was a new dealership policy because they "had gotten burned" on people taking cars out of state and not paying TTL or some bullshite.
I've bought like 5 different cars out of state and I've never run across this.
Never heard anything like it. This was a honda franchise dealer.
I asked the salesman if his finance guy knew he was telling me it was cash or nothing. He said that was a new dealership policy because they "had gotten burned" on people taking cars out of state and not paying TTL or some bullshite.
I've bought like 5 different cars out of state and I've never run across this.
Posted on 5/21/24 at 6:28 pm to JohnnyKilroy
quote:Because credit card companies charge fees?
Why would they?
I'm surprised at the response to the OP. It seems very possible he could save 2-3% simply by having the dealership avoid the CC fee.
I've also heard that the "they get you on the financing" trope is vastly overstated. I think the reality is some dealerships really care about the financing and some are literally indifferent. I know I've been to some in recent years that didn't seem to care at all.
In any event, the right thing to do ALWAYS is to agree on the price prior to discussing the mechanics of financing.
What I've done on my last several purchases is use "a guy" that's basically a consultant/agent. He charges I think $400 to find you the single best deal for the exact car you want anywhere in the US that you tell him is fair game. When I got my GMC, he had not only located it, but he also completely pre-negotiated everything. All I had to do was get myself to the dealership and sign the papers. It was pretty liberating knowing I had ZERO haggling to do onsite.
I can provide his contact if anyone wants it.
Posted on 5/21/24 at 6:47 pm to Auburn80
quote:
way?by Auburn80
It should be illegal but dealerships get a kickback from the bank they finance through.
Why should it be illegal?
You do know that your mortgage company gets a kickback when they write that loan, too.
Posted on 5/22/24 at 7:55 am to JohnnyKilroy
quote:
I just bought a new car 2 months ago and the dealer wouldn't let me finance through them lmao. It was so fricking weird. They said they would ONLY do a cash deal since I was planning on registering the car in a different state.
Never heard anything like it. This was a honda franchise dealer.
I asked the salesman if his finance guy knew he was telling me it was cash or nothing. He said that was a new dealership policy because they "had gotten burned" on people taking cars out of state and not paying TTL or some bullshite.
This makes total sense. Many dealerships won't do, or place restrictions on, out of state deals to avoid regulatory headaches.
Posted on 5/22/24 at 8:33 am to 632627
quote:
Many dealerships won't do, or place restrictions on, out of state deals to avoid regulatory headaches.
Never heard of it. Between myself and my immediate family we probably have 10 vehicles purchased at dealers out of state and this is the first time I encountered a cash only deal?
What's regulatory issues are there when providing financing to an out of state buyer? I wasn't even out of state. I lived in the state of the dealer, but I was moving shortly thereafter (and already had property in the new state) so I just wanted to save the headache and register it in the new state from the jump.
Ultimately it was fine, I paid the cash. It was just a weird thing that I've never seen before.
Posted on 5/22/24 at 8:37 am to TrapperJohn
For large purchases, they will usually charge a credit card fee and force you to use cash/check.
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