Buying a brand new car with cash, advantage?

Even more bonus points if you stack the notes all neatly and have someone come with you so you can wave your hand out to the side and have them open up the briefcase. :lol:

don't forget the standard black suit :p
 
You said the car you want isn't on the used market yet, so I suppose it's a new model?

Usually, demand is high for new models, so the dealerships don't have any trouble selling for MSRP. Also, interest rates for new models are usually ridiculously high...

Which takes us back to what has been said, dealerships make part of their profit on the interest from loans or rentals... If you pay cash, they don't get that slice of profit.

Also, some brands don't offer negociable prices (like Toyota)

Finally I suppose it's also a regional thing, maybe in other parts of the world, the customs are different and you would be able to negociate the price if paid cash.
 
Well, you could always play both sides of the coin. Say you have the cash, but would be willing to finance if they can give you a better deal (then just pay it off).
 
Yeah...that's pretty much what's been said. You'll get a better deal if you haggle and arrange financing with no penalty for paying more (ie. all) towards the principal. You don't finance directly through the dealer, always via a third party (or, in some cases, a parent company spinoff like GMAC or Ford Credit - they actually make more money than the respective car manufacturer, ironically) that credits the dealer a specific amount, based on the terms of the financing deal. Regardless, the dealer loses out a bit if you don't finance, so I'd hazard a guess and say they're more inclined to let a car off the lot on the terms of financing rather than a cash deal. Its not like you're going to skip on the taxes or anything, and for large cash purchases, it has to be reported to the Fed - more headache for the dealer.

Work out the best deal you can and finance it. Pay it all off on your terms.
 
I'd negotiate the price you're going to pay, and deflect any questioning a dealer gives you on which way you're going to pay. If you can swing a deal because they think they're going to be able to screw you on financing, you get the number in writing, then you pay cash, you're in good shape. Stating you're paying cash up front just lets them know they need to hose you somewhere else.
 
I'm interested to know as well.

My guess is 2010 Camaro. Reason: he mentioned paying $30,000 and Camaro is about that much. He also said he wanted transmission to be just right, and I'll assume it's not going to be a luxury car with fancy gearboxes for that price, so it's probably between auto or manual. A 30k car would have auto, he wants it to be right so not auto, so it's probably manual, meaning its probably a sporty car. But that logic could also make it a Genesis Coupe...

The number of doors being right part just has me stumped. Argh, now I want to know what car it is too!
 
Genesis still fits as it comes in Coupe and Sedan.

EDIT: This is like the "Guess That Car Game [By Clues Only]"
 
The question isn't "is there an advantage to paying with cash over financing" its is there the advantage of paying less when telling the dealer "I'm paying with cash."

Maybe 40 years ago you would get a better price but not now.

I don't care how you pay for it and considering a dealership makes money off of you when you finance through them they might actually give you a worse price for paying cash.

Even if you finance through the dealership and they give you buy rate, as in they don't markup the rate to make extra money off of you, the dealership still gets a flat fee from the bank for originating the loan. The flat will range from 100 to 300 dollars or so. For most of the banks we deal with the flat is around 200 bucks.


Interest rates right now are very, very cheap. Many credit unions are offering rates in the 4.9% range on new cars as long as you have stellar credit in the high 700 range or higher. At rates that low I would finance over paying cash. Also keep in mind that special rates, generally anything under 4 percent on a new car, like those offered by the manufacturer are almost always given only when giving up some other incentive or rebate.

You have to do the math and see which one is better for your particular scenario and if you take the special rate you better not payoff the loan early. If you pay the loan off early then you just gave away part of your incentive.
 
If you have the cash ready what you want to do is negotiate the lowest price you can. Then tell them you are paying all of it on your credit card. They will balk! They have to pay a transaction fee and will try to convince you that they can't.

This is where you can threaten to walk away from the deal unless they either take the card or knock another 5% off for a cash deal. This is a win win for you! If they take your card you got the reward points. If they want the cash they will give you a little room.
 
I bought my last car with cash, dealer wanted 12 I said I have cash and offered 9.5 ended up getting to for 10, so thats a 20% discount odds are you should be able to get that amount too. You should really wait until you can find a lightly used model of this though and safe yourself a hell of a lot money.
 
Yes. I've seen deals for about Third off a new ford or Mazda or similar. You are unlikely to get so much off with something like a merc or Audi though.
 
My guess is 2010 Camaro. Reason: he mentioned paying $30,000 and Camaro is about that much. He also said he wanted transmission to be just right, and I'll assume it's not going to be a luxury car with fancy gearboxes for that price, so it's probably between auto or manual. A 30k car would have auto, he wants it to be right so not auto, so it's probably manual, meaning its probably a sporty car. But that logic could also make it a Genesis Coupe...

The number of doors being right part just has me stumped. Argh, now I want to know what car it is too!

Except for the $30k figure (which I think was just an arbitrary figure he just threw out there), the Mk 6 VW Golf meets everything.

Sunroof, wheels (I hate aftermarket wheels), transmission, number of doors, and exterior color have to be the way I want.

There aren't many options to chose from as almost everything is standard, but the audio department can obviously be taken care of aftermarket. Though, the optional sat-nav would be a very nice option to have, however it is touchscreen and I am highly concerned about the durability of such devices over time.

Just came out in America - Check
Optional Sunroof - Check
Standard wheels suck but options are available - Check
Choice of auto or manual - Check
Choice of number of doors - CHECK
Choice of colours - Check, obviously
Touchscreen ICE with optional sat-nav - Check
 
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Know what's bullshit? Even if you pay in cash, the dealer, by federal law, still has to run a credit check on you. We have the Patriot Act to thank for that.
 
Darkshark wins. And the 30k was just an arbitrary number.





I'm looking at a GTI though.
 
Excellent! :D Very cool choice in car no matter what everyone says, especially if you are going for the new-to-America TDI. :)

Edit: Oh, GTI I see. Even better!
 
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I agree that cash is an excellent bargaining tool, but its just an option of bargaining. Someone also mentioned the better deal through financing.

I personally feel that throwing down pure cash for a brand new car is nonsense. But it really depends on the car you are getting, and the level of depreciation/ residual value.

If I were to go for a midlevel luxury car like a 3series, audi, merc.. blah blah. I'd lease that thing, because I could get a new car in 3 years while Banking the cash for investments with 8% return. But if I were to go with something that doesnt depreciate as badly like a GtI, Mini Cooper, I would consider buying it, as I think the residual is enough not to be a loss over 3 years. Anything in the exciting category, I would buy used at 1/2 price, the m3's, porsches, vantages etc..

there is so much more you can do with cash then flush it on a depreciating commodity.
 
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