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Thread: New car: Talk down the price if buying in cash?

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    Default New car: Talk down the price if buying in cash?

    In two months, I should have the $ to buy myself some wheels, all cash, all at once (no payments). I had to do it this way because my credit is bad and I couldn't get a decent enough loan. When I go to the dealer, I want to bargain. Friends have told me you can talk down the price if you have all cash upfront. Has anyone done this? Can you give me some pointers on how to bring it up/what to say? Thanks much.

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    Default Re: New car: Talk down the price if buying in cash?

    when i went and paid for my car in cash... they were kinda dicks to me. i had a friend with me that sold cars before, so he did all the talking.

    i bought a 00 honda civic, 60k miles, cd player/system, custom rims and low profile tires.

    they were asking 12500.

    they were NOT budging on that price, until we said we had cash, and we would pay 9500 RIGHT THERE.

    i drove that car away 30 minutes later

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    Default Re: New car: Talk down the price if buying in cash?

    If it is a used car you can get them to drop the price significantly. They make a huge profit on used cars. If they dont budge, go find a different one somewhere else.

    If it is a new car, they can realistically only drop the price so much. There isnt as much play in a new car.

    I just bought an 05 Lincoln Navigator for 30K when they wanted 39,5K for it to begin with.

    Use your brain and dont take no for an answer!! Good luck

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    Default Re: New car: Talk down the price if buying in cash?

    Quote Originally Posted by Sinful333 View Post
    If it is a new car, they can realistically only drop the price so much. There isnt as much play in a new car.
    This is not true in Australia! My dad recently purchased a saab 95 aero and said what is the best price, they took 2500 off straight away, then he said cash and got a whopping $20k off the car! Taking it from $85k to $65k! full optioned with sunroof, electric windows, cruise control, leather interior! The lot!! So, dont dismiss new cars, you can still pick up a bargain especially around end of financial year sale!

    If you buying a used car, have a mechanic check it out (3rd party mechanic) then you will know what is wrong with the car! Car yards are good at hiding defects and borken parts, that down the road (no pun intended) could cost you alot!

    My brother had a 2nd hand toyota surf from a car yard, they had a 5k km warrenty, so 5025 kim later it broke down, what had happened was the engine blew up and it needed a full re-build, the car yard did not want nothing to do about it and left him with a 15k bill for engine repairs and parts! The car when purchased was great inside and out, had low km's for the age of the car etc and it still blew up!

    Just be careful and always take a guy who knows things about cars who can discuss things with the car sales men! The market is so competitive they will lie and cheat for your money! But some are very honest too!

    Good luck!

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    Default Re: New car: Talk down the price if buying in cash?

    Wow, I must just be lucky or something as I bought my car "Bunny" used from a private seller off eBay. I was looking for a motivated private seller as they are always the best and she was very highly motivated to sell.... she was leaving the country at the end of the week and all I had to offer was $100 more than her previous offer... and sold!

    The only warranty with this car is the warranty that my mechanic supplies every time i have a minor and/or major service done to it. I honestly try to stay the hell away from car yards.

    Also, why buy new? It devalues instantly the moment you drive it off the lot. Why not by the type of car you want yet only two years or so older... ???

    I don't really see the point in buying brand new "this year's model" when it will devalue greatly within moments of you purchasing it. Why bother. Wasted money.


    enter: E3167322D9 for your 10% discount

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    Default Re: New car: Talk down the price if buying in cash?

    I tend to be a new car buyer- but that's because I drive my car until it dies. I still have my first car, bought new, and it's still in good condition- and I'm over 30.

    A new car is a really bad financial deal when you prefer to get a different car every so often (@5 years or less).

    I used to work @ a dealership. The cash = discount used to be true, but many dealerships make money off of doing loans, so it's becoming less and less true. Also, luxury cars have way more markup than economy cars, and cars with many options/luxury add-ons tend to have high markups.

    Bottom line:
    least amount of discount:
    new economy cars at stock or near stock level (no fancy options), especially imports.

    some amount of discount:
    new cars, mid-level or luxury with many add-ons or luxury features.

    most amount of discount:
    Used cars, unless the model is in exceptionally high demand.

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    Default Re: New car: Talk down the price if buying in cash?

    My fiance got a screaming deal on his car. Paid cash. He found two cars he liked (2yo), talked to the salesman about the one he liked least, said he'd pay cash, and made an offer. His offer was significantly less than the sticker price. The salesman did the "let's go into my office and talk to the manager" crap, where they take you in, sit you down, write some numbers down and then leave to discuss it with the "manager" They refused his offer, came back with only a slightly lower price than the sticker.

    Fiance left the dealership and went to the one selling the other car he liked, actually the one he liked better. Talked to a salesman who again started to go into the "come to my office" shit, and just then the salesman from the first dealer called him to make a better offer. Fiance talked to the guy right in front of the other salesman - "yeah I'm at another dealership now". Suddenly both salesman got alot more friendly.

    He got the car he wanted at the price he wanted to pay.


    So, you may not have to play 2 salesman against each other like that, but you could have a friend call you just at the time you're talking business with the dealer selling the car you want. It would work best if you have scouted another car at another dealer so you can play a plausible story to the salesman. Play it cool, and watch him start scrambling to make a deal

    It's also best to go at the end of the month because then you can find a salesperson who's trying to make his monthly numbers, and s/he'll be more willing to make a deal

    Quote Originally Posted by pheno View Post
    When you lead a nontraditional life don't try to measure it with traditional milestones.

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    Default Re: New car: Talk down the price if buying in cash?

    ^ but that is what it's about... car salesmen are hustlers just like us!

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    Default Re: New car: Talk down the price if buying in cash?

    as others have already touched on, the true key to getting a 'clean deal' on a car is in knowing just how much money the dealership actually has invested. With outright new cars there isn't a whole lot of 'wiggle room' - with the exception being factory financed incentives i.e. 'cash back' or 'subsidized interest rates'. Same is more or less true of 'program cars' i.e. cars that are a year or two old, but have been leased by a car rental agency or other business. The common thread to new cars and program cars is that their title has never been transferred i.e. they still remain the 'property' of the car company and still retain a complete manufacturer's warrantee when they are actually sold to a private party and the title is transferred.

    Where used cars are concerned, car dealers have lots more 'wiggle room' - even if the used car is only a year or two old. The trade-off of course is that the title has already been transferred once and that the manufacturer's warrantee clock has already started running. Also, the car dealer who took the vehicle 'in trade' may actually have a lot less real money invested in the used car than the blue book value - because it was part of a negotiated sale of another more expensive car.

    The ability to wind up with a major discount for a 'cash sale' is directly related to how badly the dealership wants to sell it. Like clubs, business levels at car dealerships are often seasonal. If you go shopping during a seasonally 'slow' sales month it improves your chances for a good deal (like buying a sports car / convertible in December). Brigette is also correct that monthly sales statistics (where the top salesman gets a bonus / wins a prize etc.) can provide extra motivation for the salesman to sacrifice some used car commission i.e. offering a deeper discount on a car sold at the very end of the month (which will be made up for by his locking up the monthly sales bonus / prize due to the additional sale). Shopping for a used car with cash three days from the end of the month is the absolutely best time to do so (but watch your 'business days' since the sale doesn't count toward the bonus / prize unless the car is actually registered and delivered before the month ends).

    Lately, car dealers are also getting hit with the fallout of 'subprime credit' woes, meaning that while they may have willing customers those customers simply don't have enough down payment cash or creditworthiness remaining to get financing they can qualify for. This seems to particularly apply to cars in the $15k and under price range. This problem is compounded by the fact that previous car purchases and long term car loans have put many car owners 'underwater' in terms of resale value versus outstanding balance of their car loan. As such, right now offering cash up front for a used car in the $15k and under price range gives a potential buyer MAJOR leverage in price negotiations.

    Ultimately a car dealer can always sell a used car at the local dealer auction, so that value sets the floor for any price negotiation. Kelly Blue Book also provides a price 'bar' that pretty much guarantees that dealers won't undersell each other by any major amount on a car of similar make / model / year / mileage / condition. While the dealer auction value and Kelly Blue Book value will preclude car dealers from 'giving away' a car, walking in with cash at the right time WILL entice car dealers to bend that price 'bar' to some degree.

    ~
    Last edited by Melonie; 05-20-2007 at 07:23 AM.

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    Default Re: New car: Talk down the price if buying in cash?

    So, I do plan on going to a dealer. I want a VW Golf TDI (diesel) 4 door, pretty basic (no frills) 2001-2004 model. These seem to be priced around $13000 in my area. How much do you think I could talk the price down?

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    Default Re: New car: Talk down the price if buying in cash?

    it really depends on what it comes with.

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    Default Re: New car: Talk down the price if buying in cash?

    and demand to see a carfax before making the deal.

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    Default Re: New car: Talk down the price if buying in cash?

    It depends on the options on the car, how much the dealer paid for it, how much repair was put into it (most dealers do some work on the cars when they come in), and how long it has been on their lot along with how quickly they normally sell the cars.

    The key words are, "I have $________ cash for this car. I am willing to pay all of that for this car...out the door." Which simply means that the $$$$ (whatever cash you have to pay) is your FINAL price with taxes, license, and title fees all included. They'll most likely want to haggle with you. Let them, don't let them. It's up to you, but stick to your guns. If the car is not a big seller, they may take a short-term "loss" in order to move the car and free up the space for another car that turns quickly. They pay interest on every car on their lot, so the faster they can move the inventory, the more money they make.

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    Default Re: New car: Talk down the price if buying in cash?

    Please note that car titles can be "cleaned" and carfax reports can be fudged. There are some sneaky ways dealers can make it look like a car was never wrecked on paper, but in fact it was totalled and repaired. It happens. For this reason I would stick to larger, more reputable dealers for car-buying.

    And keep in mind that if the deal sounds too good to be true, it probably is. If the normal price for a certain car in your area is @ $13k, don't expect to get it for less than, say, $10k at the lowest.

    Take any used car you're considering buying to a third party mechanic and have it checked out for mechanicals AND signs of body damage/repair. Also drive it around on both city streets and highway, and keep the radio OFF so you can listen and feel for how it drives and sounds as you idle, speed up, slow down, brake, shift gears, etc. You can listen/feel for how an automatic shifts itself out. If it sounds rough, or if it winds high before shifting, skips or anything, be wary. Make sure all the parts work. If something small like a mirror is broken, that's not much of a concern because you can fix those things easily/cheaply. You want to make sure nothing mechanical or major is in bad shape. I would do the test drive BEFORE taking it to the mechanic, so if you hear anything weird you can ask about it. If the salesman rides with you, don't ask him questions while driving the car, and ask him to keep quiet so you can hear the car.

    Quote Originally Posted by pheno View Post
    When you lead a nontraditional life don't try to measure it with traditional milestones.

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    Default Re: New car: Talk down the price if buying in cash?

    the Golf diesel TDI, new or used, is actually in very high demand right now, which is going to keep the price high.

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    Default Re: New car: Talk down the price if buying in cash?

    No one has touched upon private sellers...??? Why??? Finding a motivated private seller (like I did) can be very lucrative for you as the buyer. It worked for me. I doubt I will ever go thru a dealer for any subsequent cars.


    enter: E3167322D9 for your 10% discount

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    Default Re: New car: Talk down the price if buying in cash?

    Ignoring Push to Shove, playing dealerships against each other etc... kind of plays. Dealerships don't like cash. Cash means less profit, it means no payments and that means no interest. Walking into a dealership with cash and expecting better treatment is foolish.

    If anything you want to negotiate the price as if you are going to finance it. And then just pay for it with cash or outside financing.

    GoldCoast, I definitely agree on the private seller front. Finding a motivated private seller, or a car that is one or two years old, is an instant way into savings. It is also a more time consuming process. But it is the best way to get the best deal you can on a car.
    Never stand begging for that which you have the power to earn.

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    Default Re: New car: Talk down the price if buying in cash?

    Quote Originally Posted by Melonie View Post
    the Golf diesel TDI, new or used, is actually in very high demand right now, which is going to keep the price high.
    Yeah, looking for a daily driver, I offered 12K on an '02 in very good shape, got turned down hard. Anymore than that, and the benefit of the mileage doesn't add up, especially for a second car.

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    Default Re: New car: Talk down the price if buying in cash?

    i don’t know much about buying it with money....
    but my grandpa used to be a car dealer and he told me that when buying a car go in on the last wed. of the month.
    They need to make a certain amount on the end of the month i suppose, and wed. is one of their least busiest days.

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    Default Re: New car: Talk down the price if buying in cash?

    Oh yeah, when you start to test drive a car, look for oil or fluid leaks on the pavement where it's been parked. You don't want a car that's leaking stuff.


    Going in on the last Wednesday of the month sounds like a great tip from yogi.

    Quote Originally Posted by pheno View Post
    When you lead a nontraditional life don't try to measure it with traditional milestones.

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    Default Re: New car: Talk down the price if buying in cash?

    Also, get a mechanic that you trust to do a check-over to see what he thinks. Any reputable seller (dealer or individual) will allow that.

    for new cars, I actually don't mind going through AAA or costco buying clubs. you get a decent deal for new cars from either one- although you can still get screwed by the dealership via options, financing and warranties. buying clubs don't protect you from that.

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    Default Re: New car: Talk down the price if buying in cash?

    By the way, if you want to improve your credit you could get the best loan available to you, make steady, timely payments on it for one year, and then pay it off. It'll cost you a little bit in interest for the year, but it'll improve your credit score. And after one year, you can pay it off and not worry about the rest of the interest.

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    Default Re: New car: Talk down the price if buying in cash?

    I would think about buying from a private owner if you are buying a used car. If they have owned it since it was new, you have a chance to see how they live. I believe that gives you insight as to how they likely took care of their car. Also, you can look at them and determine if they are telling the truth or not. Whereas in a car dealership, while they may tell you it was taken care of, the reality is they really do not know.

    As to offering cash, in today's world, financing and cash are equal to a dealership. In fact, cash can cost them some money that they would make with the bank. I believe that going through a private party and making them aware that you can purchase it immediately, does offer advantages over another person making an offer and not knowing for sure that they will qualify.

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    Default Re: New car: Talk down the price if buying in cash?

    ^^^ agreed! The vast majority of people who deliberately plan on rolling over their vehicle every year or two will lease instead of buying. Thus as Venus points out, the vast majority of current owner direct sales of 1-2 year old vehicles are motivated by some form of financial distress. But unlike car dealers, owners are not necessarily governed by a need to 'turn their inventory'. Thus, like 'underwater' homeowners, it may actually take several months worth of failed attempts to convince the underwater carowner that if he wants to sell the car he will have to drop the price significantly below Blue Book and/or the outstanding balance of his car loan.

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    Default Re: New car: Talk down the price if buying in cash?

    Dont forget to check the blue book value of a car. It is a great starting point to see what a car is actually worth. Banks will not finance a car for too much more than the blue book value.

    www.nada.com click on the consumer section and you can look it up for free.

    My stagegy with cars has always been to get pre-approved at a bank and then pit the dealer against the bank.

    Dealers always shop the loan around to see who will finance the most for the car. Your personal bank will not finance too much more than the blue book value of the car. That gives you leverage for the price of the car. Dealerships do not want you to have any leverage at all. The banks the dealer uses all have contracts with them and alot of money changes hands.
    Nature knows no indecencies; man invents them. ~ Mark Twain


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