OT: Paying cash for a new car, tips?

[Mr. Pink]

Originally Posted by zap

Recently purchased a new vehicle. Price with the local dealer negotiated via email. I was pleasantly surprised by their offer but wanted to see if we could do better.

We only have one dealer (Lexus) in our metro area. So I tried negotiating with out of town dealers. Two problems. One, dealers north of us (D.C. area w multiple dealers) had awd models that we did not want. Second, not one dealer up to 200 miles west or south of us offered a discount off msrp.

So we purchased from our local dealer. Did manage to remove Toyota/Lexus dealer add on nonsense when we were at the dealer.

We sold our 2013 Mercedes privately.

A good friend is wanting to purchase a BMW X5 with a specific package. Found one up in metro D.C. but the dealer refused to sell it to her.

About ten years ago I negotiated for a new Subaru that was advertised on a fairly local dealer's website over a month by phone and email. When I was ready to write the check, I was informed that the car did not exist. You bet I was mad.

[PaMtbRider]

Outside of buying a home, a car is the most expensive purchase many people make. It's a shame the current business model for buying a car is so miserable.

On a more positive note I was pleasantly surprised by Subaru USA. After purchasing our Outback I reached out to Subaru USA and asked about any loyalty perks they could offer. After verifying the vin of our previous and new Outback they emailed a $350 coupon good for service or accessories at any Subaru dealer in the US.

[pwgoode]

Originally Posted by PaMtbRider

Outside of buying a home, a car is the most expensive purchase many people make. It's a shame the current business model for buying a car is so miserable.

On a more positive note I was pleasantly surprised by Subaru USA. After purchasing our Outback I reached out to Subaru USA and asked about any loyalty perks they could offer. After verifying the vin of our previous and new Outback they emailed a $350 coupon good for service or accessories at any Subaru dealer in the US.

Subaru is good about this. I did the same thing back in 2017 and received a $500 loyalty reward toward our new Crosstrek.

[.RJ]

Originally Posted by PaMtbRider

Outside of buying a home, a car is the most expensive purchase many people make. It's a shame the current business model for buying a car is so miserable.

You would think the internet and transparency and easy access to information would have forced them to change, but so far no.

It sucks that they're locked in with their franchise through ridiculous lobbying and people still need cars no matter what.

[Louis]

Originally Posted by PaMtbRider

Outside of buying a home, a car is the most expensive purchase many people make. It's a shame the current business model for buying a car is so miserable.

Not necessarily...

https://carbonfibergear.com/blogs/ca...expensive-bike

[Ralph]

The words "paying cash" for a new car is meaningless. Car dealers always get cash, even if you finance. The bank or finance company gives them the cash.

[fourflys]

Originally Posted by Ralph

The words "paying cash" for a new car is meaningless. Car dealers always get cash, even if you finance. The bank or finance company gives them the cash.

but the issue is dealers get "extra cash" if you use the financing they set you up with.. so I would argue it matters to the dealer if you pay cash or finance with them.. now, I would agree if the choice is either paying cash or using your own financing you've secured prior to getting to the dealership.. I mean, there's a reason they are so eager to "find you a better rate"..

[Ralph]

Originally Posted by fourflys

but the issue is dealers get "extra cash" if you use the financing they set you up with.. so I would argue it matters to the dealer if you pay cash or finance with them.. now, I would agree if the choice is either paying cash or using your own financing you've secured prior to getting to the dealership.. I mean, there's a reason they are so eager to "find you a better rate"..

Sure.....Dealers would rather finance. My point was....I remember being proud to say I can pay cash and it meant something. Now it just means you will cut off some of the dealer profit, maybe hurting your deal.

[fourflys]

Originally Posted by Ralph

Sure.....Dealers would rather finance. My point was....I remember being proud to say I can pay cash and it meant something. Now it just means you will cut off some of the dealer profit, maybe hurting your deal.

fair enough.. I'm not worried about the dealer's deal.. they aren't going to sell you that car for any less than they want to.. I paid cash a I didn't want to have a car loan and pay a car payment..

BTW- I still think it means something if someone can pay cash since I'm certain the vast majority of car buyers cannot..

[.RJ]

Originally Posted by fourflys

fair enough.. I'm not worried about the dealer's deal.. they aren't going to sell you that car for any less than they want to.. I paid cash a I didn't want to have a car loan and pay a car payment..

BTW- I still think it means something if someone can pay cash since I'm certain the vast majority of car buyers cannot..

Taking the dealer financing and then paying it off in 90 days will save you cash money in the end though.

Sometimes "paying cash" is like stuffing your savings in a mattress.

[fourflys]

Originally Posted by .RJ

Taking the dealer financing and then paying it off in 90 days will save you cash money in the end though.

Sometimes "paying cash" is like stuffing your savings in a mattress.

Only if you are paying more because you are paying cash.. when I buy a car, I go in with a price in mind and get a deal before I mention payment options.. if the dealer then tries to stick on an additional price based on paying cash, I walk..

Now if you mean I can have my cash in an interest-bearing account for an extra 90 days, then maybe.. but how much is $30 or $40k going to earn in 90 days unless you have an insanely good return product?

Also, some financing has a minimum time before you refinance or pay it off, esp dealer financing..

[.RJ]

Originally Posted by fourflys

Now if you mean I can have my cash in an interest-bearing account for an extra 90 days, then maybe.. but how much is $30 or $40k going to earn in 90 days unless you have an insanely good return product?

You'd earn $500 @ 5% interest on $40k. Of course, thats about what the interest on 3 months of the car note would cost you, too. So that would be a good strategy to offset any costs.

Some of the financing contracts require 90 days before refinancing or payoff but a lot of them dont - read the fine print and all. If there's no penalty for paying it off as soon as you get your loan documents then there's really no downside here.

Still, the dealer holds a lot more information about the financials than we can know sitting at the sales desk - there's holdbacks, incentives, year/quarter/month end bonuses, promotions, financing spiffs or kickbacks. So they have a profit number to hit on that vehicle, on that day, and there's no way to know what that is or how much the financing plays into it. And as ****ty as most dealers are, they're in business to make money and there's nothing wrong with that.

So maybe you are getting the best price, or maybe not. Its awful short sighted to walk from a deal because they dont want to take a check at that price if the out the door price now costs you more than whatever the financing costs are.

[fourflys]

To each their own, but I’ve HAD to finance way too many cars in my life and now am in a position to not finance, as long as I’m not buying a stupid expensive car.. so, for me, I don’t have any interest in financing a car.. I do the research, know what I want to pay OTD, and what, if any, room I’m willing to move.. can’t meet my parameters? No deal.. there are way too many other cars on offer to not pay what I want to pay..

[Ralph]

Originally Posted by fourflys

To each their own, but I’ve HAD to finance way too many cars in my life and now am in a position to not finance, as long as I’m not buying a stupid expensive car.. so, for me, I don’t have any interest in financing a car.. I do the research, know what I want to pay OTD, and what, if any, room I’m willing to move.. can’t meet my parameters? No deal.. there are way too many other cars on offer to not pay what I want to pay..

I kinda feel the same way. One rarely really "needs" a car anyway. I hate debt and payments. And sometimes finding a great dealer and a fair price is the goal. I really like my wife's Lincoln dealership. (it's not part of an auto group) Sure we've paid for that, but it's just a nice place to do business. Sometimes they talk me out of doing stuff. Says it doesn't need it etc. And they wash it anytime I drive it over there...free. And their coffee is great. Considering they have a business to run, pay people fair wages, be a good citizen in the community....I wouldn't drive across town for a slightly better "deal". Sure....I drink the Cool Ade.

[fourflys]

Originally Posted by Ralph

I kinda feel the same way. One rarely really "needs" a car anyway. I hate debt and payments. And sometimes finding a great dealer and a fair price is the goal. I really like my wife's Lincoln dealership. (it's not part of an auto group) Sure we've paid for that, but it's just a nice place to do business. Sometimes they talk me out of doing stuff. Says it doesn't need it etc. And they wash it anytime I drive it over there...free. And their coffee is great. Considering they have a business to run, pay people fair wages, be a good citizen in the community....I wouldn't drive across town for a slightly better "deal". Sure....I drink the Cool Ade.

Awesome! Love the intangibles!