Pay Cash at car dealership, lower price?
Recently sold my truck, and have a good amount of money to buy a car from a delearship, like ford, chevy, etc…
I have the chance of paying for the car I want in cash. I know if I do this I would be able to haggle down the asking price, my question is how much?
Anyone from experience done this before? Or would I just be better off making a huge down payment and paying the rest off?
Comments or stories would help.
Cash is NOT king when it comes buying cars. You should negotiate your price based on your negotiation skills, NOT the fact that you cash. You won't develop negotiation skills by asking strangers here.
Means nothing to them. What do you think the loaning bank gives them when you go that route. Game tokens? So it makes no difference but they might humor you into thinking it does.
This isn't 1958. Cash gives you zero negotiating power. The dealer gets paid 100% for the car either from you or the lender, so they don't care if you pay cash.
In fact, they would rather you finance through one of their approved lenders because not only does the dealership get all of the cash, they also get kickbacks from the lender with which they place your loan.
Car dealers make more if you finance through them. There's no incentive for them to give you a cash discount.
Paying cash does not get you a lower price as the dealer gets cash from you or the finance company anyway. Having cash just makes you a qualified buyer with out finance issues. Sometimes the dealer gets kick backs from the finance company which make them more profit.
Dealers get cash no matter how you pay.
The price you get depends on your negotiating skills, not your payment method.
Financing at a dealership is almost always a bad idea.
It depends on what you mean by haggle… I got my 2003 dodge sx 2.0 for 3200 from a listed 3990 price tag. Tax included. So that only saved me taxes plus a little bit. If you were going for a big struck 20-30 thousand dollars, is it really important to save 2000? But getting items included, like gas cards or something… May be worthwhile.
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