How does one go about buying a car outright with cash?

Wasn't sure where to post this...

My mom wants to buy a new car, and has the cash to do it. We know that the WORST thing she can do is to go in there and say, "I'm planning to pay cash" because the dealer wants to make the money off the interest from payments.

Anyone have any ideas what would be the best way to go about this?

Thanks

Re: How does one go about buying a car outright with cash?

Although I've never done it I would tell them outright that it's a cash deal. I bet you can get quite the deal with cash.

Re: How does one go about buying a car outright with cash?

It was a while ago, but we paid all cash for one of our cars. DH saw the specific car online. I don't recall when he said he was paying cash, but he was able to negotiate a little off. I think he put the deposit on a credit card, which we then paid off, and he had to get a bank check for the balance.

Re: How does one go about buying a car outright with cash?

Re: How does one go about buying a car outright with cash?

WOW, so she SHOULD say that she is looking to pay cash? We kinda thought that might drive the price UP since they'd actually be LOSING money without the monthly payments...

Re: How does one go about buying a car outright with cash?

i don't think so at all. but really, it's like any other car purchase-- you need to know exactly what you are willing to pay for a car. you need to do your homework ahead of time and know what the dealer invoice cost will be. i bought my latest car for only $200 over invoice. You walk on the lot knowing what you are willing to pay and if they don't want to play the negotiating game with you, be prepared to walk off the lot and go elsewhere; and do just that if it comes down to it.

Edmunds.com is a good place to start doing research. And through consumer reports, kbb and others, you can find out exactly what a dealership paid for the car to be on their lot and therefore, what you can pay to take it off their hands.

Re: How does one go about buying a car outright with cash?

Re: How does one go about buying a car outright with cash?

I went into the dealership, picked out the vehicle I wanted and when they stuck me in with the finance guy I told him I have a check written out for x amount of $$ and that's all I will pay.

It worked. I'm pretty much a hardazz when it comes to wheeling and dealing.

Re: How does one go about buying a car outright with cash?

If she's worried that they'll try to bring up the price, just hold off talking about the payment options until she's as far into the negotiating process as she can get. But otherwise, it'll be exactly the same as any other car buying experience.

Re: How does one go about buying a car outright with cash?

I would not tell them I was paying cash until after I had negotiated the price below what the dealer pays for it. Then, when they discuss financing, tell them you'll be paying cash.

Otherwise they may try to pad the deal for the money they are losing out with in financing.

When we bought our car, it was not discussed how much I was putting down until the financial part was being done.

Re: How does one go about buying a car outright with cash?

first time, dh did not tell them we had cash until deal was made.

2nd time, he said this is what i have and this is what i want.

both seemed to work

Re: How does one go about buying a car outright with cash?

Well i helped my FIL negotiate a car for my SIL once. Paid cash

He gave them a large sum of cash to 'hold' while we were deciding on two cars. $5000!

Then I helped negotiate the price. They got a killer deal on it and at the end the dealer guy was talking credit and interest and my stupid FIL pulls out a wad of cash.



I about died.

They did actually drop another bit off the price for being cash and everyone walked away happy.

So I think if I could do it, I'd negotiate FIRST then as my last 'card' I'd pull out it was cash and expect another cut. But that's just me.

Message edited 1/7/2010 11:38:06 AM.

Re: How does one go about buying a car outright with cash?

Thank you all SO much for the advice!

Phyl, I like your idea about the check. That could be a good idea...

I also think it might be a good idea to negotiate the price FIRST and then talk about the financing later.

Re: How does one go about buying a car outright with cash?

FYI, as far as the dealer is concerned, outside financing is the same as cash (unless they do under the table accounting...). We never finance through the dealer, so we have a check from the bank. As far as they are concerned, we are giving them a lump sum for the car. Doesn't matter who's name is underwriting the check....

Re: How does one go about buying a car outright with cash?

You should say nothing about payment. When they ask if you plan on financing say something vague like we will have to see how the numbers work out. After negotiating the final price then you say I am prepared to pay cash or do 0% and then pay it off lump sum at the end of the month.

Re: How does one go about buying a car outright with cash?

I am sorry, but being in the car business for the past 10 years (and my DH is as well for the past 25 ) everyone here is wrong.

This is the absolute easiest way to go about it:
Negotiate the price of the car. Do your research. Most dealer will give you a better price if you finance. Make sure your selling price is as low as possible. Let them "finance" the car. Do not concern yourself with interest rate at all, or special rates, because if you don't take the special rate there is usually an additional manufacturers rebate you can get(again, do your hw). MAKE ABSOLUTE SURE you see on the contract that there is no prepayment penalty!!!! The day your mom get the loan payments in the mail, have her call for a payoff. If the loan is paid in full before the 1st payment is due, she cannot be charged a penny of interest. HTH

Any other questions, feel free to FM me

Message edited 1/7/2010 12:58:26 PM.

Re: How does one go about buying a car outright with cash?

Posted by ave1024

Posted by MrsRivera

WOW, so she SHOULD say that she is looking to pay cash? We kinda thought that might drive the price UP since they'd actually be LOSING money without the monthly payments...

Absolutely!

The whole "dealer is losing money on the financing" is not as big of a deal as you think. Their commissions are small, so I am sure they would prefer the sure-thing cash deal.

You may even be able to do a deal under the table if you literally bring GREEN with you.

I know one guy who bought an M3 from a dealer and they waived his sales tax on the car for paying with green. Sort of gangsta way (and somewhat illegal for the dealer) to do... but it could work.

Message edited 1/7/2010 1:00:39 PM.

Re: How does one go about buying a car outright with cash?

Message edited 1/7/2010 2:22:29 PM.

Re: How does one go about buying a car outright with cash?

Posted by Phyl

I went into the dealership, picked out the vehicle I wanted and when they stuck me in with the finance guy I told him I have a check written out for x amount of $$ and that's all I will pay.

It worked. I'm pretty much a hardazz when it comes to wheeling and dealing.

Re: How does one go about buying a car outright with cash?

my parents just purchased a car with cash they didn't say anything until they got the price together. They pretended they would put down about 20K for their car (half) and ask for the payments, negotiated the terms, etc. When it got time to do the contract they said hold on looked at their check book and said "we will pay it full"

my brother on the other hand put 2K down on a car got a great price then paid it off on the first payment.