Question about paying cash - viewed as positive or negative by dealer?
11-02-06, 06:19 PM
#17
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11-02-06, 06:29 PM
#18
Lexus Test Driver
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11-02-06, 06:54 PM
#19
The dealer I bought from seemed more excited about a finance deal than a PIF transaction. Good for him not for me though...for places that make more money on a finance, cash isn't an incentive.
I've always wanted to do a C-card purchase on a car to get the card benefits. My limit isn't -that- high and Chase jumps up-down when I pre-pay. First got a letter within days of my payment then a day or so later it was followed by a phone call telling me I have a neg balance...they want to issue a check on the account immediately. Didn't occur to ask them for a 22% interest rate. (Like they do for cash advances)
I've always wanted to do a C-card purchase on a car to get the card benefits. My limit isn't -that- high and Chase jumps up-down when I pre-pay. First got a letter within days of my payment then a day or so later it was followed by a phone call telling me I have a neg balance...they want to issue a check on the account immediately. Didn't occur to ask them for a 22% interest rate. (Like they do for cash advances)
11-02-06, 08:27 PM
#21
Oh well, so much for that dream.
The rest is OT:
I dunno what hotel family it was (not Hilton), it was relayed to me that one of the children came into either a high end shop/car dealer to buy something $$$ so the manager called the issuing company up regarding the C-card purchase. The issuing company asked if they were buying the who place...either way, it was relayed there was no problem.
The rest is OT:
I dunno what hotel family it was (not Hilton), it was relayed to me that one of the children came into either a high end shop/car dealer to buy something $$$ so the manager called the issuing company up regarding the C-card purchase. The issuing company asked if they were buying the who place...either way, it was relayed there was no problem.
11-02-06, 10:26 PM
#22
the deal is, most lexus dealers could really give a rats *** if you finance or pay cash. where the finance end is really important is in your domestic stores where they dont make the profit on the sale of the car, so it HAS to come from somewhere. me, i am just happy to sell the new lexus in the first place
I'm just currious?
11-10-06, 01:50 PM
#27
In 1997, we won $14,000 in Las Vegas, came home, got the 1995 Grand Marquis washed and went down to the Lincoln / Mercury dealer and traded it in on a new Town Car. Gave the dealer $2,000 in left over travelers checks to hold the car / down payment. They thought it was unusual and funny.
11-11-06, 10:04 AM
#29
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In reading on the Benz forums and Ferrari Chat etc, paying cash is no big deal. Remember financing is really there b/c we cannot AFFORD the car cash, so we HAVE to finance it. Our Credit rating is just telling Lexus (or the lender) we can pay it back.
If I could pay for a LS 460 cash, I would do it. Cars depreciate, rarely do the opposite. Makes no sense to finance (and pay MORE for the car) if I have the cash to pay less for it.
If I could pay for a LS 460 cash, I would do it. Cars depreciate, rarely do the opposite. Makes no sense to finance (and pay MORE for the car) if I have the cash to pay less for it.
11-12-06, 08:21 AM
#30
Lexus Test Driver
Cash purchase is a negative to the dealer.....
because it removes a profit center (finance revenue) from the transaction.
Is paying cash a smart idea? If I told you that I had a mythical investment opportunity for you and your $70,000 and I could just about guarantee that in 4 years it would be worth half that amount would you be a player? The good old US Dollar is a piece of paper and has no backing in tangible value and as such has eroded in purchasing power for decades. Real Estate values have quadrupled during that time. Are all of these older houses worth so much more? NO! The Dollar has gone down in value. We have generally had some inflation for many years so this means that you will need more Dollars later to buy the same amount of goods. This reduces the cost of borrowing as you are paying back in less valuable Dollars over time. Now if you could take the mythical investment above and get a 10 percent return on it while paying 7 percent for financing then it would be a wash after taxes. If you can get greater than a 10 percent return then you should keep your cash and invest. Leasing may give the most leverage of your money.
As far as negotiating by stating that you will stroke a check, it does not improve your leverage so resist the temptation. Some owners just don't like financing or leasing cars so for them it's simpler and that's fine too. When driving the LS460 these other trifles will disappear in the rear view mirror...
Rock
Is paying cash a smart idea? If I told you that I had a mythical investment opportunity for you and your $70,000 and I could just about guarantee that in 4 years it would be worth half that amount would you be a player? The good old US Dollar is a piece of paper and has no backing in tangible value and as such has eroded in purchasing power for decades. Real Estate values have quadrupled during that time. Are all of these older houses worth so much more? NO! The Dollar has gone down in value. We have generally had some inflation for many years so this means that you will need more Dollars later to buy the same amount of goods. This reduces the cost of borrowing as you are paying back in less valuable Dollars over time. Now if you could take the mythical investment above and get a 10 percent return on it while paying 7 percent for financing then it would be a wash after taxes. If you can get greater than a 10 percent return then you should keep your cash and invest. Leasing may give the most leverage of your money.
As far as negotiating by stating that you will stroke a check, it does not improve your leverage so resist the temptation. Some owners just don't like financing or leasing cars so for them it's simpler and that's fine too. When driving the LS460 these other trifles will disappear in the rear view mirror...
Rock