Question about paying cash - viewed as positive or negative by dealer?
#1
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Question about paying cash - viewed as positive or negative by dealer?
I have an LS460 on order that should be here soon. I tend to keep my cars a long time, so I'm paying cash rather than finance or lease. Is this considered a positive, a negative or a neutral thing to a dealer? I am expecting to pay MSRP like everyone else, but does paying cash carry any weight in negotiations? If so, how can it be leveraged, even in a seller's market like this one?
#3
i really dont care, however given the choice i would rather not have cash. it always cracks me up when a customer says "im paying cash, so i want your best price!" the two arent connected at all. i guess in days past it used to be a major pain to get financing arranged for a customer so there was an advantage to paying cash, but not anymore.
but like i said, i really dont care as long as the car gets sold.
but like i said, i really dont care as long as the car gets sold.
#5
I agree, from my experiences with car dealers. All large new car dealerships dont really care if you pay them cash or not, not that much of a determining factor. (usually works only for private sellers or small-med used car dealerships.) wouldnt hurt to try tho.
I dont think it will be a negative thing, I am sure they get people that buy their cars with a simple check, might be wierd paying cash tho, because they would have to count it? I doubt they have a bill counting machine at the dealership, so maybe it would be an annoyance that way lol.
I dont think it will be a negative thing, I am sure they get people that buy their cars with a simple check, might be wierd paying cash tho, because they would have to count it? I doubt they have a bill counting machine at the dealership, so maybe it would be an annoyance that way lol.
#6
Not to mention the fact that dealers make good money on providing financing to their clients, so an all cash buyer simply means a less profitable buyer to the dealer, and therefore even less reason to offer a discount than they would to a finance/lease buyer, where they can make extra profits on the financing itself.
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#10
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yeah, definitely. some dealerships (i saw it before) wouldn't even take your "cash", they ask you for a check instead
i always wonder, by putting buyers into finance program, do the dealerships get kick back? if so, then i guess from dealership points of view, they would like to see financing?
i always wonder, by putting buyers into finance program, do the dealerships get kick back? if so, then i guess from dealership points of view, they would like to see financing?
#12
yeah, definitely. some dealerships (i saw it before) wouldn't even take your "cash", they ask you for a check instead
i always wonder, by putting buyers into finance program, do the dealerships get kick back? if so, then i guess from dealership points of view, they would like to see financing?
i always wonder, by putting buyers into finance program, do the dealerships get kick back? if so, then i guess from dealership points of view, they would like to see financing?
#13
yes, the dealer will either get a fixed amount or a percentage of the "yield spread premium" which is clearly disclosed on all lfs contracts. (note, i normally refer to lfs since they get about 95% of my business. there are plenty of other finance sources available depending on the dealership). so to answer your question - yes, the dealer makes more money if you finance, which is why it always takes a customer by surprise when i jokingly tell them i am going to have to charge them more if they pay me cash! the look on their face is always priceless, since they are used to in the old days getting a better deal (i guess) by paying cash for their purchase, not being told that its now a disadvantage.
#14
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yes, the dealer will either get a fixed amount or a percentage of the "yield spread premium" which is clearly disclosed on all lfs contracts. (note, i normally refer to lfs since they get about 95% of my business. there are plenty of other finance sources available depending on the dealership). so to answer your question - yes, the dealer makes more money if you finance, which is why it always takes a customer by surprise when i jokingly tell them i am going to have to charge them more if they pay me cash! the look on their face is always priceless, since they are used to in the old days getting a better deal (i guess) by paying cash for their purchase, not being told that its now a disadvantage.
so yeah, in that case, i guess they would prefer someone to finance the car rather than paying cash
#15
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Whoa, when I said "cash" I meant paying by check as opposed to financing or leasing, not the green stuff. Sorry for the confusion.
I guess even though I won't get a concession on the front end, I will pay thousands less overall than those who finance.
I guess even though I won't get a concession on the front end, I will pay thousands less overall than those who finance.