Stupid car buying question

[chiefsfan1]

Since we have been looking at cars, how do we make a offer when paying cash?
Do I actually have the money in my pocket, then let them make me a offer?
Then I counter low and say here's the cash?

I plan on keeping paying cash to myself at first.
It's kind of nice not having to worry about financing.

 

[JayhawkRoy]

I have the money available in my personal checking account. Write the check at completion of the deal and everything has been negotiated.

 

[DeepFriar]

Put the cash in the bank and get a certified or cashiers check for the transaction. You want that record. Always try to get the lowest price first. They may lowball you thinking they'll carry the paper and you might be able to hold them to it (maybe). You don't need greenbacks to pay in "cash".

 

[SZR48207]

Remember that the salesperson doesn't care how you pay. The finance person is the one you talk to about the cash.

So just get the best price you can from the first guy and settle the details with the second one.

 

[CKN]

These days-despite what some think there is not any advantage "price wise" when you buy a new car to pay cash. Quite the opposite-some dealers will give you a better price on a vehicle because they make a half-point or more on the financing they arrange for you. In addition to that-with wire transfers-the dealer getting their money from a financial institution is instantaneous.

It makes no difference if you tell them in the beginning or not.

Go on the different car sites on the web and find out the bottom price you should pay for the vehicle you are looking at. That's your offer.

 

[FlyPenFly]

Paying cash will often get you a worse deal.

 

[Cardenio327]

Make it clear that your offer is "cash" and in "out the door" terms. You can start the process by asking what is their best "out the door cash" price. Then counter their offer with a lowball offer.

I've had the salesman take me to the bank to withdraw the money, probably to make sure I didn't change my mind.

 

[chiefsfan1]

Thanks. We are buying used.
One could always take a loan then pay it off on the first payment.

 

[JMJNet]

Just tell them "One payment finance plan".

Any car dealers should accept personal check.

 

[Donald]

You can not really answer while negotiating. If they offer you 0% it might be worth financing.

I think these days they make the most $$ on paint protection, rust proofing and service contracts which they like to add to your payment then quote you the monthly payment with these various packages included.

 

[SpecM]

Most dealers around here prefer that you do not pay in cash (as in literal physical cash). It adds a lot of work load to the dealer. Two people have to count it (upon payment, and then at close of business). Someone has to deposit it at the bank, and if it is over 10k (and it usually is), then special paperwork must be filled out for the IRS.

And as said before, dealers get the money wired within a day from financial/load institutions, so that's all they need.

If you want to pay "cash", pay with a certified check once an out-the-door price has been negotiated

 

[NormanBuntz]

Originally Posted By: chiefsfan1
Thanks. We are buying used.
One could always take a loan then pay it off on the first payment.


Wrong. Many finance companies will not accept a payoff or refinance deal during the first six months. Reading the tiny print is a must.

 

[Olas]

Originally Posted By: chiefsfan1
Since we have been looking at cars, how do we make a offer when paying cash?
Do I actually have the money in my pocket, then let them make me a offer?
Then I counter low and say here's the cash?

I plan on keeping paying cash to myself at first.
It's kind of nice not having to worry about financing.


Negotiate the price you're happy to pay, then give them either; notes and coins, or, your debit card.

 

[Mr Nice]

Originally Posted By: DeepFriar
Put the cash in the bank and get a certified or cashiers check for the transaction. You want that record. Always try to get the lowest price first. They may lowball you thinking they'll carry the paper and you might be able to hold them to it (maybe). You don't need greenbacks to pay in "cash".


Yep. + 10000%
You never carry cash on you, especially a few thousand dollars.

 

[kschachn]

I paid cash (cashier's check) for one of my vehicles, and the dealer knew that was how it was going to work. The salesman told me that it didn't matter as the negotiation for the sale price was separate from the payment method. They said that they offered financing if I wished, or I could go through my own bank or I could pay by cashier's check. It didn't matter.

Another thing they explained was that there isn't really a "trade in", you negotiate the purchase price for a new vehicle and then the dealer may make you an offer to buy your old vehicle. But they made it clear their offer would be a wholesale amount and I could probably do better in a private sale.

 

[Panzerman]

Coming from just buying a car it's aggravating in the car dealerships to get a out the door price, tax, tags, title etc out the door bottom line price. They always want to talk payments and how much can you or will you pay a month.
You should always, regardless of whether your financing or buying outright always work on a out the door price.
I usually tell them I don't care what my payment is, let's talk sale price only. It seems to work best for me and then shop three dealerships when buying new cars. Don't let them mix the numbers on you.

 

[69GTX]

Cash can work well with buying from the public if the car has a signed over title from the proper owner....since you can then leave immediately with the vehicle. Always get a receipt for a cash purchase.

 

[BrocLuno]

If at a dealer, I use a credit card. That way I have the receipt and I can dispute the charge if there is anything wrong with the vehicle that they did not disclose.

Once the car/truck runs well for a week or so, I just pay off the CC and the pink shows up in the mail a few weeks later. A bank is involved, but not a lot on my end. The dealer takes the hit on the CC charges. And I get the reward points on my CC

Negotiate a price, shake on the deal and then hand them the CC

 

[CKN]

Originally Posted By: NormanBuntz
Originally Posted By: chiefsfan1
Thanks. We are buying used.
One could always take a loan then pay it off on the first payment.


Wrong. Many finance companies will not accept a payoff or refinance deal during the first six months. Reading the tiny print is a must.



Very true. I just put a deposit down on a new 2017 Santa Fe. In order to get an additional $1,500 rebate I must finance through Hyundai finance. I can refinance the car after six months-but not before. Even factoring in the interest rate-I figure I'm still about $1,300.00 ahead.

 

[Vuflanovsky]

Originally Posted By: CKN
These days-despite what some think there is not any advantage "price wise" when you buy a new car to pay cash. Quite the opposite-some dealers will give you a better price on a vehicle because they make a half-point or more on the financing they arrange for you. In addition to that-with wire transfers-the dealer getting their money from a financial institution is instantaneous.

It makes no difference if you tell them in the beginning or not.

Go on the different car sites on the web and find out the bottom price you should pay for the vehicle you are looking at. That's your offer.


+1

In my experience, dealerships don't really care if you pay cash as that's not the optimal transaction for them to make money. These days, "cash in hand" is usually not much of an incentive for the seller to make a deal with you.

My last vehicle purchase had me paying cash...but that was the least important component of the transaction. I caught them at a busy time and blindsided them when I advised I'd buy the car after talking on the phone with the "internet manager" and taking the test drive all within a three hour period. It came to pass that this environment worked in my favor more than paying cash ever would. I'd agree that you meed to know what the typical purchase price is in your area and work from there.