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    Question about buying a car

    I plan on saving money and buying my next car with cash. I hate debt, and I feel like you can get a much better deal if you're paying with cash. My question is, how good of a deal have you gotten in the past paying with cash on a car? For example, if I wanted to buy a $10,000 car, is there a reasonable chance I could end up getting that car for around $7,000 if I offer cash? I've never done this before, so I don't know how willing them are to give you a better deal



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    Re: Question about buying a car

    Quote Originally Posted by CarlHungus View Post
    For example, if I wanted to buy a $10,000 car, is there a reasonable chance I could end up getting that car for around $7,000 if I offer cash?l
    Highly doubt you could get 30% off. Maybe up to 10% on a used car.



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    Re: Question about buying a car

    it knocked about $300 off the car we got.......but the price was already very, very, very good (it had been sitting a while on the small lot - great car, bad for the local market who really only bought minivans and trucks)

    I've heard though that because they don't get to do financing with you then, they actually become less willing to drop the price if you pay in cash. Of course, you could always just be financing through your own bank or other source so then still aren't earning interest off of you.

    I would think though, that if you say you are willing to write a check that day if they meet your price and then actually walk away if they don't meet it you'd do ok.



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    Re: Question about buying a car

    I agree with the other poster. I was preapproved from my bank and they wouldn't do much for price on the car unless I financed through them. I don't know if that changes for used cars because of lack of incentives through the producer, but this was my experience when we bought a new Toyota.



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    Re: Question about buying a car

    As others have said it won't be that much but you might get some off. Paying in cash I think would be everyone's ideal way but don't be so against financing...especially if it can save you money. I had an uncle that wanted to pay cash as well. Then they told him they can't give him a discount for paying with cash but if he financed it they could knock off $1000. So he financed it paid it off the next week and saved $1000



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    Re: Question about buying a car

    Quote Originally Posted by wxman1 View Post
    As others have said it won't be that much but you might get some off. Paying in cash I think would be everyone's ideal way but don't be so against financing...especially if it can save you money. I had an uncle that wanted to pay cash as well. Then they told him they can't give him a discount for paying with cash but if he financed it they could knock off $1000. So he financed it paid it off the next week and saved $1000
    This was my thought. Finance it to save some money on the purchase price, then pay off the note right away.



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    Re: Question about buying a car

    Quote Originally Posted by wxman1 View Post
    As others have said it won't be that much but you might get some off. Paying in cash I think would be everyone's ideal way but don't be so against financing...especially if it can save you money. I had an uncle that wanted to pay cash as well. Then they told him they can't give him a discount for paying with cash but if he financed it they could knock off $1000. So he financed it paid it off the next week and saved $1000
    yep this

    why would a dealership rather have you pay in cash over financing thru them?

    maybe if you're talking a craigslist seller then yes but a dealer is going to make more money by financing


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    Re: Question about buying a car

    Quote Originally Posted by TallKidIsTall View Post
    yep this

    why would a dealership rather have you pay in cash over financing thru them?

    maybe if you're talking a craigslist seller then yes but a dealer is going to make more money by financing
    if a dealership knocks a grand off a 10k car I highly doubt that they will recoup that through financing.


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    Re: Question about buying a car

    Quote Originally Posted by ianoconnor View Post
    This was my thought. Finance it to save some money on the purchase price, then pay off the note right away.
    Will a dealer get pi**ed off if you do this? Or do they make their money off it either way?

    Sorry if this is a stupid question but I don't get why more people don't do this



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    Re: Question about buying a car

    I've bought probably 15 cars and I don't ever remember discussing financing before making the deal. When I use to have car loans I would always get approved from my credit union beforehand for a certain amount. I always let the dealership think I'm going to finance.

    If you're spending 8k on a car I would recommend buying from a private person that doesn't have to make a profit off of you.



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    Re: Question about buying a car

    Quote Originally Posted by CycloneGB View Post
    Will a dealer get pi**ed off if you do this? Or do they make their money off it either way?

    Sorry if this is a stupid question but I don't get why more people don't do this

    They make more money via the interest paid on the financing, so yeah I'd say they probably aren't too happy with people who go that route. But it's a business and if they can't make it because a few people go this route, that's their problem. Most don't take the financing and immediately pay it off (I'd rationally assume).



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    Re: Question about buying a car

    Quote Originally Posted by clone2011 View Post
    They make more money via the interest paid on the financing, so yeah I'd say they probably aren't too happy with people who go that route. But it's a business and if they can't make it because a few people go this route, that's their problem. Most don't take the financing and immediately pay it off (I'd rationally assume).
    Good point. I'm sure not too many people have the money up front.

    I'd agree with dmclone though. If you are spending 8-10k on a vehicle you'll probably get more out of your money by buying from a private seller.



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    Re: Question about buying a car

    I have limited exposure to financing through a dealership but in that limited amount, usually banks have done the financing and it wasn't done in house.


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    Re: Question about buying a car

    Dealerships couldn't care less if you pay with cash or not. Honest truth.



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    Re: Question about buying a car

    paying cash is fine, i have actually heard of good luck by paying cash, negotiating over email (all dealerships do this as they have internet managers), but the best luck is paying cash and no trade in... trade ins actually complicate things and if you roll up to dealership at the end of the month with no strings attached, no trade ins, write out the check and tell them you will drive it off the lot in the hour... i think you can get 10-15% of MSRP.....maybe more depending on car and market conditions...



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