How to deal when paying cash

[fphinney]

<div class='quotetop'>QUOTE(lchamp @ Jan 15 2007, 03:12 AM) [snapback]375769[/snapback]</div>

We joked about that with the dealer and he just laughed. It coses the dealer 3-5% when you put it on a card. That is going to figure into his pricing. He'll just raise the price to accommodate the fees associated with the card. You lose...or at least, you don't win. He raises the price 3% and you get 1% cash back...does not look good to me.

Cash is the great leveller. Every time you use a card, the dealer/merchant pays a fee to the bank that issues the card. That is always added to the price of any item.

Cheers,

Larry
[/b]

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NEGATORY!

I've read about two or three others on this website that have used credit cards! The process isn't easy, but does SAVE MONEY!

Also - - in California, it is illegal to charge anyone an extra fee for using a credit card. The price is supposed to be the same whether a person uses cash or a card. Yeah - I know - sometimes it does happen. However, if a guy got really irritated, I suppose he could win a lawsiut about this?

[TonyPSchaefer]

Looks like I'm a little late to this party. I paid cash.

Libertyville Toyota allows up to $2,000 to be put on a credit card. Discover gave us 1% back. The rest I wrote a check for. At the time (August, 2004) there was a list of potential buyers dozens deep and there was no haggling or dealer incentives.

When we bought my wife's Buick Regal, we never mentioned payment plans. The salesman kept talking about financing and we just went along but never saying that we were going to finance. He wrote up the final price of the car after trade-in, incentives, cash-back bonuses, whatever. He ASSUMED that we were going to finance and was only focusing on the cost of the car. We finally accepted his lowest price and I had him sign the sheet of paper on which he scratched it. When we got to the Finance guy, he handed us a loan application and my wife slid it back indicating that we wouldn't be taking out a loan; she got out the checkbook. There was a great deal of confusion on their part, but in the end, feel as though we pretty much stole that car. I'm pretty sure that if the Salesman knew we were paying in cash, he never would have thrown every incentive he could find at us. In the end, how you pay for the car is completely between you and the Finance guy and you can pay for that car however you choose.

[richard schumacher]

Consumer Reports advises that you refuse to discuss payment options until the price is agreed. Keep the two transactions separate; a dealer makes a profit on financing and can drop the price a little if they think you will finance. See the links under the heading "Buying Advice" at http://www.consumerreports.org:80/cro/cars/index.htm

[eagle33199]

Like suggested, leave the payment portion of it to the end of the discussion. Get the base price of the car figured out, etc, and then at the end tell them you want to pay cash. We did that, got a decent price, and when we said that at the end the sales manager came over and told us that if we financed at least 2k, we would get a 500 buck discount because i had recently graduated. Definitely worth it, since that dealership was also running a deal where you don't pay interest for the first 3 months.

[scoot]

As previously posted, whether or not to pay cash is a question to ask the dealer - which is the best deal. I have always intended to pay cash but on the pickup I purchased 3 years ago, they offered me $1000 to take their attractive financing, which I paid off in 6 months.

Regarding the haggle - DO IT OVER THE PHONE or INTERNET. Chances are, you will find the best deal from

a- car salespeople advertising on Priuschat
b- the largest volume dealer arounnd

As a side note, I did see an ad a week ago in the Sunday LA Times for two loss-leader Priuses -- base model at $4000 under MSRP.

The time is good for bargaining!!!!

[JimN]

Read through www.carbuyingtips.com. I would start the negotiation at invoice and work your way up. There are lots of cars around now so you'll be able to get a better deal than you would have on a 2006. All the other posts offered good advice. You won't know what works until you try. Don't fall in love with any car--it's inventory--the car sitting on the other lot is just as good. Personally I wouldn't buy from anyone with add on costs on the sticker. Good luck.

[richard schumacher]

As previously posted, whether or not to pay cash is a question to ask the dealer - which is the best deal.
[/b]

Dealer: "Why yes, Honored Customer, of course we'll tell you which option will minimize our profit!". Yeah, right. :_>

[R32]

I never understood why people pay cash for cars if their credit is good. Invest the cash and you'll make more in interest (even a simple ING savings account) then you'll pay in finance charges (again if you can get a good rate which isn't too hard).

[lchamp]

<div class='quotetop'>QUOTE(richard schumacher @ Jan 18 2007, 11:31 AM) [snapback]377198[/snapback]</div>

Dealer: "Why yes, Honored Customer, of course we'll tell you which option will minimize our profit!". Yeah, right. :_>
[/b]

if you were quoting me, I said to ask him how to get the best PRICE, not deal. Lemme give you an example...

If the finance company is giving the dealer an incentive/kickback, the dealer would really like to finance your car. In order to do that, he will offer you a better price if you tell him you are financing the car.

2 years ago, I bought a Dodge. The finance company was giving a dealer incentive of $1200...because I financed the car, the dealer gave me an additional $1000 off the negotiated price. I paid off the loan before the end of the month. Dealer made $200 more profit and I saved $1000 off the negotiated sales price. We were both happier that way. If I hadn't financed the car, he wouldn't have made the extra $200 in profit. It cost me less than $100 in finance charges when I paid off the loan in a couple of weeks.

cheers,

Larry

[maggieddd]

<div class='quotetop'>QUOTE(R32 @ Jan 18 2007, 12:13 PM) [snapback]377228[/snapback]</div>

I never understood why people pay cash for cars if their credit is good. Invest the cash and you'll make more in interest (even a simple ING savings account) then you'll pay in finance charges (again if you can get a good rate which isn't too hard).
[/b]

but if you have no cash at the moment, you can pay for the car with a 0% for a year credit card and pay it off within a year and pay no interest