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re: Is a car purchased from a used car lot lower when paid for by cash rather than financed?
Posted on 5/4/24 at 5:12 pm to dkreller
Posted on 5/4/24 at 5:12 pm to dkreller
quote:
How is the buyer involved in a dealership’s accounting practices?
Because the purchase price has to be recorded and provided to the state so they know how much to charge the purchaser for the taxes. Basically they would be cheating on their taxes and your taxes.
This post was edited on 5/4/24 at 5:14 pm
1
Posted on 5/4/24 at 5:14 pm to BigBinBR
I’m not necessarily referring to a “write a check” cash purchase.
Posted on 5/4/24 at 5:27 pm to tigersbb
We used to require the cost of the vehicle as down payment and then finance the profit.
Either way the dealer made bank like that. Miss a payment = yank the vehicle to sell again or they get the profit of the payments on time.
Wait till EOM around 3pm and tell them your cash offer. They don’t want to stay there till 9pm.
Either way the dealer made bank like that. Miss a payment = yank the vehicle to sell again or they get the profit of the payments on time.
Wait till EOM around 3pm and tell them your cash offer. They don’t want to stay there till 9pm.
Posted on 5/4/24 at 5:38 pm to Sidicous
quote:
Wait till EOM around 3pm and tell them your cash offer. They don’t want to stay there till 9pm.
What is the significance of the end of the moth to a cash sale?
Posted on 5/4/24 at 5:42 pm to tigersbb
Having cash to cover the purchase will give you the most flexibility, and thus the best terms.
Posted on 5/4/24 at 5:45 pm to Sidicous
quote:
We used to require the cost of the vehicle as down payment and then finance the profit.
So a reasonable cash payment above what they have in the car would likely be accepted? For instance on a car listed at $12,000 for which they have $6,000 invested would likely sell in the $8,000 range for cash?
Posted on 5/4/24 at 5:52 pm to tigersbb
Usually, yes.
You should not finance anything with those types of places.
To be clear, I'm talking about the "Buy here, pay here" type dealers.
You should not finance anything with those types of places.
To be clear, I'm talking about the "Buy here, pay here" type dealers.
This post was edited on 5/4/24 at 6:23 pm
Posted on 5/4/24 at 6:04 pm to tigersbb
quote:
What is the significance of the end of the moth to a cash sale?
Bills are about to be due. Rent, Utilities, Lot insurance, Child Support and Alimony.
Posted on 5/4/24 at 6:18 pm to tigersbb
Cash only talks on “dirt lots” who may or may not cheat on their taxes.
Posted on 5/4/24 at 6:18 pm to tigersbb
The simple answer is cash/check payment is not a positive for a dealer since they make money on the backend also. You should not let them know you are a cash buyer until after the OTD (out the door) price is finalized. Deflect any discussion of financing.
Unless it is a buy here pay here type of dealer they aren't getting their money monthly, it comes from the company writing the loan so there is no incentive in time other than a few days.
Never flaunt being a cash buyer or already bought at the bank that just lets them know they have to get all their profit on the front end.
Never discuss what payment you are looking for and never say yes to any of their queries about if X will get you to go over the curb today.
Go in with a set number in mind and don't bend on it, it is easy to do but if you weren't willing to pay a higher amount sitting at home why should you change your mind? Go in do the test drive, don't let them pull your credit (even a "soft pull"). If you still want the car sit down and negotiate toward a OTD price, deflect financing. Refuse to pay for any of the bullshite add-ons (unless you actually want them) just barrel through to the OTD price. If you can come to an agreement then steel yourself for the F&I round. Just barrel through all the extended warranty bullshite and get to the point you write a check. If you want an extended warranty do your research and have a price for the ones you can buy to compare to the dealership options. You have to walk in fully ready to walk out on any deal.
Unless it is a buy here pay here type of dealer they aren't getting their money monthly, it comes from the company writing the loan so there is no incentive in time other than a few days.
Never flaunt being a cash buyer or already bought at the bank that just lets them know they have to get all their profit on the front end.
Never discuss what payment you are looking for and never say yes to any of their queries about if X will get you to go over the curb today.
Go in with a set number in mind and don't bend on it, it is easy to do but if you weren't willing to pay a higher amount sitting at home why should you change your mind? Go in do the test drive, don't let them pull your credit (even a "soft pull"). If you still want the car sit down and negotiate toward a OTD price, deflect financing. Refuse to pay for any of the bullshite add-ons (unless you actually want them) just barrel through to the OTD price. If you can come to an agreement then steel yourself for the F&I round. Just barrel through all the extended warranty bullshite and get to the point you write a check. If you want an extended warranty do your research and have a price for the ones you can buy to compare to the dealership options. You have to walk in fully ready to walk out on any deal.
Posted on 5/4/24 at 8:56 pm to tigersbb
quote:
t is the significance of the end of the moth to a cash
Inventory turns, units sold for example. Can mean the difference between who still has a job if not making the sales.
Posted on 5/4/24 at 9:07 pm to tigersbb
quote:
So a reasonable cash payment above what they have in the car would likely be accepted? For instance on a car listed at $12,000 for which they have $6,000 invested would likely sell in the $8,000 range for cash?
I’ve been out of the business too long to guess at “acceptable margins” but yeah reasonable offers are reasonable and EOM and especially End of Quarter they’re more reasonable than others. The numbers are either black or red in the push for the last squeeze of juice.
Posted on 5/4/24 at 11:26 pm to tigersbb
I have bought a lot of cars in my life so here is my experience…financed when young ..cash when older…
First you are asking about the price set at the sale not total …. Ie financing…. second you are talking about a used car lot generally not a big dealership.
They generally make money from the sale and often outsource the financing.. and as op said you do not want to finance through them… so cash purchase is interesting to them ( unlike a dealership where the car is just a means for the corp …GMC…to sell you a loan)
As op also said end of month means the seller will be negotiating to get his monthly sales up for bonus or owner wants to close out a good month.. so better deals then .
First you are asking about the price set at the sale not total …. Ie financing…. second you are talking about a used car lot generally not a big dealership.
They generally make money from the sale and often outsource the financing.. and as op said you do not want to finance through them… so cash purchase is interesting to them ( unlike a dealership where the car is just a means for the corp …GMC…to sell you a loan)
As op also said end of month means the seller will be negotiating to get his monthly sales up for bonus or owner wants to close out a good month.. so better deals then .
Posted on 5/4/24 at 11:32 pm to tigersbb
Knew a guy that when he was ready to buy a car (new or used) he’d find what he was looking for then go to 3-4 places
He’d tell them to give him their lowest possible price.
Afterwards he’d pay cash and buy from the lowest priced place.
He said a few times other places would call him back and ask why he didn’t let them beat the lowest price he got quoted. He’d tell them I asked for your lowest up front if you could do better than you didn’t give it to me to start with.
He’d tell them to give him their lowest possible price.
Afterwards he’d pay cash and buy from the lowest priced place.
He said a few times other places would call him back and ask why he didn’t let them beat the lowest price he got quoted. He’d tell them I asked for your lowest up front if you could do better than you didn’t give it to me to start with.
Posted on 5/5/24 at 12:27 am to bulldog95
I saw a lot of people make sure there was no early payment fee and finance so they'd get best price and incentives and then pay-off after waiting long enough
to let the deal get funded to the dealer but only be out a couple of months interest.
Serm to be a win/win for dealer and buyer. Don't think the finance companies were big fans.
to let the deal get funded to the dealer but only be out a couple of months interest.
Serm to be a win/win for dealer and buyer. Don't think the finance companies were big fans.
Posted on 5/5/24 at 4:09 am to Thecoz
quote:
I have bought a lot of cars in my life so here is my experience…financed when young ..cash when older…
First you are asking about the price set at the sale not total …. Ie financing…. second you are talking about a used car lot generally not a big dealership.
They generally make money from the sale and often outsource the financing.. and as op said you do not want to finance through them… so cash purchase is interesting to them ( unlike a dealership where the car is just a means for the corp …GMC…to sell you a loan)
Yes, I prefer to deal with a small well maintained used car lot . I have no interest in buying from a dealership and going through their song and dance drivel between the sales consultant and the invisible sales manager nor do I want to shop from a cluttered muddy lot with a bunch of raggedy cars stacked up .
I will be assisting my daughter with a payment for a car for my grandson. She has limited funds and I will cover most of the purchase price. Within certain range we can pay cash for the vehicle. My daughter has only a fair credit scored due to some financial issues caused by a former husband. I am trying to help her avoid financing if we can buy a car for cash within our range and I am just wondering whether a cash sale has any affect on the ultimate price. I am aware that dealer financing will add to the ultimate total amount paid but that might be her only option if financing is needed. So I was just inquiring whether the seller would find it better to to receive the total money in hand as opposed to the uncertainty of whether the buyer would make payments on time for 3 to 4 years
Posted on 5/5/24 at 7:02 am to tigersbb
The price is the price.
The cost is the price plus taxes or the price plus taxes and interest
The cost is the price plus taxes or the price plus taxes and interest
Posted on 5/5/24 at 7:52 am to tigersbb
quote:
My question is whether the seller will be more flexible when getting full payment in cash at the time of sale rathe r than ultimately getting more on a delayed basis and hoping the payments are made by the purchaser.
If we were living in 1975 then you would be correct.. if we were living in 2005, you would be correct.. But in 2024, paying cash puts you at a disadvantage (at least in the eyes of the dealer/seller.)
As mentioned upthread, stay quiet about having cash, negotiate the financing then (making sure there is no early penalty, or Xing it out)- after the first month or two use ur cash to pay off the whole thing … in America, cash isn’t king anymore, what a time to be alive .
Posted on 5/5/24 at 8:08 am to tigersbb
Consider buying from a private party. There is a good opportunity to get a lot more vehicle for the $ than when buying from a stealership.
Posted on 5/5/24 at 8:10 am to tigersbb
quote:
For instance on a car listed at $12,000 for which they have $6,000 invested would likely sell in the $8,000 range for cash?
No, they won't.
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