how much would buying with cash save???

[GTI27]

wuts up guys,

i just joined the forum and am lookin to get a mkv gti at the end of may so i ecided to start doin research now. iv noticed that i could pick something up pretty decent for about 18-20k but unfortunately i dont think i have that much.

basically just wondering since i plan on paying upfront in all cash, how much u think id be able to bring the seller down since its cash???

 

[theholycow]

It will be extremely seller-dependent. There's no predicting, just get out there and make some offers.

 

[Wölfi]

Making it known that you intend to pay in cash may actually make it more difficult to negotiate the best price, since the dealer would know that they're not going to get any more of your money in interest charges. Even if you wouldn't be using VW Credit, the third-party financing companies often pay something to the dealer.

Your best approach would be to let the dealer believe you're going to be financing the car, negotiate the best price you possibly can, and then whip out your checkbook to pay the entire amount in cash.

 

[Khobin~]

Deal in cash...tell them you want to pay cash, and work out your deal that way.

Several reason why, but to sum up, any dealer would prefer to take a cash deal over finance. It's less risk for them, and hey, who doesn't love a big wad cash?? :biggrin:

As theholycow said above, getting the best deal will depend on who you deal with...some dealers might be willing to give a better price then others.

IMO the best practice is to figure what the car is worth to you, realistically, and deal accordingly. Make sure you're getting a value for you cash, and as long they can make money off the deal, it'll work itself out. :thumbup:

Keep in mind it's a business, and a business wouldn't be a business if it wasn't going to make some kind of profit. :wink:

 

[theholycow]

Er...I didn't think OP was talking about dealers. I thought the question was for private party sales. I would agree with Wölfi regarding dealers.

Dealers generally don't take any risk by financing, because dealers generally do not run their own banks. Instead, they're selling loans from other banks -- and the bank generally gives them a kickback. They make a profit on the loan itself, and will miss out on it if you pay cash.

Also, they all buy similar cars at approximately the same price, and they tend to have similar overhead costs, therefore their prices probably won't vary much from one dealer to the next.

Individuals' prices and the amount they'll take in cash will vary widely. Some see a bank-loan check as the same thing as cash, which it generally is to them. Some have prejudices or current situations that make cash more or less attractive to them -- for example, needing the money today rather than in a few days when the bank writes the check.

 

[Khobin~]

yes there are interest incentives that dealer's sometimes get from financing...

but if it's not through the right bank, or at the right rate, i.e. if you don't qualify for the right rate, they don't get squat.

with cash it's simple, you pay, they make profit...

with financing they have to get in touch with banks, try to get you financed, see what rates you qualify for, etc. Sometimes it doesn't work out, and that time is lost, and time is money.

Then what if they can't get you the interest rate you want?...For instance, 1 car I bought they couldn't get the rate we had agreed to, so they ended up having to buy down the rate...on the same deal they also wrote down the wrong amount for the loan and lost another $1000 from that :lol: I would hazard a guess they would have prefered to take cash on that deal :iono:

Then there's other issues of saying you're financing, they will pretty much try to deal with you in terms of monthly payments, not the price of car...so you'll have to work backwards from there, or they'll know you're full of it when you consistently ignore the payment they offer and say "what's the price?"

Most dealers will have cash incentives, or interest incentives...do you see ads saying "2,000 off IF you finance", or is it always "2,000 off cash, OR X.X% apr o.a.c." :wink:

Yes dealers will pay the same invoice, but some dealers might be willing to go $500 off, some might be willing to go $1000 in order to earn your business.

Personnally it just takes all the :bs: out of it if you're straight up...I want "X" car, with "Y" options for "Z" price, and I'm paying cash.... can you do it? If not, what's the best you can offer me? Simple, to the point, and they will know you've come to buy a car, not just kick tires and waste their time. :wink:

 

[Bu66a]

Hey

i live in California first off haha but im selling my 2 door 08 GTI 6 speed manual with an added JL Audio sub with an amp in the back. I would tell you right now i would sell it for 18,000 in cash straigh up but i would maybe even negotiate a little depending on the situation. Hope that helps

 

[Seriouschris]

any dealer would prefer to take a cash deal over finance. It's less risk for them, and hey, who doesn't love a big wad cash??

Sorry to correct, bro but as a former salesman at a dealership I can tell you this is wrong information.

Financing is no risk to the dealership because it's not their money loaned, and, as stated before, dealers make a profit from the lender when you finance. It's a no-brain, win-win situation for the dealership.

Cash these days does nothing to get you better service or a better deal from a dealer, and most private sellers won't care where the money comes from as long as it's cash.

P.S. I know this is an old thread, but it's a good lesson for people to know.