Originally Posted By: doitmyself
We can pay cash, IF that results in the best money management scheme.
It's always best to pay cash, but don't tell the anyone that at any point in the negotiation. The dealership makes a buttload of money on in-house financing, so if you let them believe that you will be financing it with them they are more willing to move on the purchase price because they will make their profit through the finance department.
The problem is that when you go this route and they possibly take a loss on the sale of the car in anticipation of making it up in the financing, the salesperson gets stiffed on their commission so the dealer won't lose any money.
It is the best way to maximize your savings, though.
We can pay cash, IF that results in the best money management scheme.
It's always best to pay cash, but don't tell the anyone that at any point in the negotiation. The dealership makes a buttload of money on in-house financing, so if you let them believe that you will be financing it with them they are more willing to move on the purchase price because they will make their profit through the finance department.
The problem is that when you go this route and they possibly take a loss on the sale of the car in anticipation of making it up in the financing, the salesperson gets stiffed on their commission so the dealer won't lose any money.
It is the best way to maximize your savings, though.