OT: Paying cash for a new car, tips?

[bikinchris]

Seriously, a sale is a sale. If they give you a hard time about not financing, go find another dealer. Yeah, they won't make as much. So what?
Just like I tell people when you're shopping for a car and they won't tell you the price, but keep saying "It's xXxX per month" you should leave that dealership.

[bikinchris]

Originally Posted by buddybikes

If paying off loans early, are car loans front loaded - pay more interest up front? If so would think taking a loan to pay off quick wouldn't work.

Forgive me, last time I had car loan was 1980s..

Wishy Ryun was nearby (New England) neighbor across st needs car fast, someone totaled his few weeks ago

Yes, car loans are heavily front loaded.

[tomato coupe]

Originally Posted by bikinchris

Yes, car loans are heavily front loaded.

They're only front-loaded in the sense that interest is calculated on the outstanding balance, and the outstanding balance is greatest at the beginning of the loan.

[yngpunk]

Originally Posted by bikinchris

Seriously, a sale is a sale. If they give you a hard time about not financing, go find another dealer. Yeah, they won't make as much. So what?
Just like I tell people when you're shopping for a car and they won't tell you the price, but keep saying "It's xXxX per month" you should leave that dealership.

Unfortunately, this is how car sales people are trained, since the majority purchase cars based on $X/month payment...vs what the OTD price is.

Simple way to stop that is say you're paying cash up front, and then once you agree on a deal, look at financing if it is an option or just to mess with them

[SlackMan]

Just chiming in to echo some other comments about financing: Dealers often et a benefit (payment) from the finance arm of the company, so they can often give a better deal if you finance. The last few cars, I financed and the paid off the loan by the 3rd month. The few months of interest still left me better off than the total price I would have paid for a cash purchase.

[Nomadmax]

In large part, car sales tactics are a result of people buying cars they can't afford. And, are upside down on their worn out trade. The only thing the sales people CAN do is talk payments. What's worse, the payment system usually induces customers into adding option$ to the vehicle they can't afford and bury themselves.

Vehicle prices would be lower than they are now if everybody had to hand over an envelope of cash for whatever they wanted to drive off with. Seeing real money leave their hands is a lot different than xxx.xx per month. I'm not a car salesman and have never been, but, I once had a job where I bought hundreds of cars. When you talk about one thing, the OTD price, it's nearly impossible to go wrong. Car sales people get a bad rap because most people go into the dealership financially unprepared to purchase the vehicle they think they "deserve". If you want honesty from sales personnel, be prepared to hear "Financially, you need this deal like you need another hole in your head. Drive what you have until you have the financial wherewithal to PAY for what you want".

[prototoast]

Originally Posted by Nomadmax

In large part, car sales tactics are a result of people buying cars they can't afford. And, are upside down on their worn out trade. The only thing the sales people CAN do is talk payments. What's worse, the payment system usually induces customers into adding option$ to the vehicle they can't afford and bury themselves.

Vehicle prices would be lower than they are now if everybody had to hand over an envelope of cash for whatever they wanted to drive off with. Seeing real money leave their hands is a lot different than xxx.xx per month. I'm not a car salesman and have never been one but, I once had a job where I bought hundreds of cars. When you talk about one thing, the OTD price, it's nearly impossible to go wrong. Car sales people get a bad rap because most people go into the dealership financially unprepared to purchase the vehicle they think they "deserve". If you want honesty from sales personnel, be prepared to hear "Financially, you need this deal like you need another hole in your head. Drive what you have until you have the financial wherewithal to PAY for what you want".

Most people pay their auto loans on time, and eliminating auto financing would decrease demand for automobiles, but would be unlikely to be welfare-improving.

[benb]

The people working at the dealership are not outwardly malicious they're just trying to survive.

The dealership owner sets up the pay & incentive system to make them do this. The owner keeps getting richer and richer no matter how good of a deal you get, but the sales person & manager only get commission when they take you for more.

The places that do this have huge turnover in sales of course.

[Peter P.]

Many posts in this thread advocate using the on-line dealing with the dealership method as better than in-person.

Can you tell me why, and how to use on-line dealing with the car dealerships to get the best price, without all the hidden or late appearing add-on costs?

[prototoast]

Originally Posted by Peter P.

Many posts in this thread advocate using the on-line dealing with the dealership method as better than in-person.

Can you tell me why, and how to use on-line dealing with the car dealerships to get the best price, without all the hidden or late appearing add-on costs?

In my experience, I got quotes online, then walked into a dealer without telling them I had gotten quotes online, and every single quote I got in person was worse than what they had already given me online for the same car.

I think the rational explanation is that online buyers are more price sensitive, but maybe it's just personality quirks between online and in person salespeople.

[Nessism]

Back in 2017 I used True Car to accumulate quotes. The best quote was about 15 miles away, so I took it to closer dealers and asked them to match or beat. Got no takers, so bought the car from the True Car low bidder. When asked how I was going to pay, I told them cash, and they said fine. The internet sales dude drove me to the bank, and I got a check for the exact amount. No drama whatsoever. A very pleasant experience overall.

[Ralph]

That's the way it should be. Many dealerships are like that.

[Matt92037]

For the first time ever I had a hassle free buying experience when I bought my wife a new car in December. Dealt directly with the General Manager, negotiated a $10K discount from sticker, no BS dealer add-ons, etc and got exactly what I wanted on my trade. It felt a hair risky because the dealership was a 2 hour drive to Los Angeles but the transaction went flawlessly.

The finance guy had me done in less than 10 minutes which is a record that will most likely never be broken.

Still kind of in disbelief over the experience.

[yngpunk]

Originally Posted by Peter P.

Many posts in this thread advocate using the on-line dealing with the dealership method as better than in-person.

Can you tell me why, and how to use on-line dealing with the car dealerships to get the best price, without all the hidden or late appearing add-on costs?

On-line dealing mainly works when you know what you want and how much you want to pay. Gives you the luxury of shopping around at home and get a feel for which dealers like to play games.

Many dealers have an "internet sales" department or sales person who handles inquiries made online vs if you walk on the dealership lot where you will be helped by the next person who's "up" or reaches you first. I understand that their compensation structure is somewhat different than that of an on the floor sales person, so their motivation and willingness to deal may be somewhat different.

While it doesn't always prevent the hidden or late appearing add-on costs, ask for the OTD (out the door price) and for them to send you a copy of the sales contract with all the numbers filled in ready for signature before you agree to walk into the dealership. Might want to offer a $500 deposit if the OTD price is what you are looking for to show that you are serious. Doesn't stop them from trying to tack on additional costs once you show up, but if they do that, is that really a dealer you want to buy from? If they do, walk out and leave them a bad review online.

YMMV depending on your location and brand you're looking to buy. Not sure if it is still the case, but a lot of the VW dealers in the DMV area (esp. those out near Dulles) where easy to purchase from on-line.

[yngpunk]

Originally Posted by benb

The people working at the dealership are not outwardly malicious they're just trying to survive.

The dealership owner sets up the pay & incentive system to make them do this. The owner keeps getting richer and richer no matter how good of a deal you get, but the sales person & manager only get commission when they take you for more.

The places that do this have huge turnover in sales of course.

Unfortunately, just like spam, these sales tactics work and these dealerships stay in business.