How large is the bargaining power of "cash buying"?

Cash is not an advantage in most cases and may be a disadvantage. Most
dealers will make most of their money on add-ons and financing that the
finance person will try to work into the deal once you are "in the box,"
meaning you have signed a buyer's order and have been turned over to the
finance people. At that point you have agreed on the price of the car and
they try to work you for the real profit.

I would let them assume that you will be financing and negotiate the best
deal that you can then when you get in the "box" tell the finance manager
that you want to pay cash and actually write a check for the price you want
to pay, plus the taxes and title fee. Explain that he can either take it or
leave it and that you have 20 minutes before you walk out the door with or
without a car. Be prepared to walk. They will call you back if you do. It
is almost a certainty, particularly if it is near the end of the month.

Leonard


> wrote in message
oups.com...
> Hello,
>
> I plan to buy a new sedan (probably a Honda accord or
> a Toyota Camry) within a month's timeframe. I don't have
> a car now, so there's no trade-in. I plan to pay full
> in cash hopefully expecting the payment less than $22k
> out the door for an Accord LX-SE or a Camry LE, both
> with a four-cylinder engine and AT.
>
> I have been gathering information online from websites
> such as edmunds.com and carsdirect.com and finding
> out "fair" market values of those new sedans. However,
> I couldn't find information from them about any additional
> buying power of cash buying.
>
> Do those fair or market prices of new cars reported on
> websites include the bargaining power of cash buying,
> if any? Or, do I have some more room for negotiation by
> telling them I am paying in cash?
>
> Thank you in advance for opinions and advices.
>

As others said, an offer of cash may not help if the salesdroid
really wants to sell you a loan. OTOH it's possible they need to
meet a quota by the end of a sales period. Then they may accept
anything reasonable with good grace. Even a cash sale is a sale.

Try to minimise the hassle you could be thought of as causing --
present your conditions politely and concisely, then be ready to
smile nicely as you walk out of there, taking business with you.
If they don't want cash, you may as well find out quickly.

And watch out for sales BS, as when your salesdroid says he/she
needs to huddle with some superior, to learn if they can adjust
the usual deal especially for you.

Etc...
--
Andrew Stephenson

> wrote in message
ups.com...
> Thank you for your comments. I now understand that I better
> not tell the dealership that I am buying in cash.
>
> I'm not in a hurry at all, so I will take time using email and
> telephone exclusively until the last moment of agreeing to a
> deal. I don't need to test-dirve them. I know they are good
> vehicles. That way, I can easily "walk out of" their court. (Hope
> I can work it out this way, though.)

Ummm, test drive one anyhow. Make sure the car is a proper fit for you.
We've had a number of people here in the newsgroup who bought a car without
an extensive test drive come to find the seat wasn't made for their ass, the
ergonomics didn't fit them, etc...

A car may be good for many people, but due to differences in body height,
weight, width, back problems, etc... may not be good for you.

I have found that I can get better deals with small town dealers than
big city dealers. Also buy during the model change over period - in
August I have even got some of the dealer's 3% hold back.

When living in Minneapolis there was a dealer in Sioux Falls SD who
sold into the Mpls market at much better prices than the local dealers
- he would deliver the cars to a vacant lot on the south side of mpls.
I got an equivalent deal in a town 60 miles away.

The big city dealers have always tried to add crap you do not want or
need like fabric protection for $300, undercoating and paint
protection. One crook in Mpls had a $500 Special Value Package which
consisted of a few oil changes which was added on to every car's price.

wrote:
> Hello,
>
> I plan to buy a new sedan (probably a Honda accord or
> a Toyota Camry) within a month's timeframe. I don't have
> a car now, so there's no trade-in. I plan to pay full
> in cash hopefully expecting the payment less than $22k
> out the door for an Accord LX-SE or a Camry LE, both
> with a four-cylinder engine and AT.
>
> I have been gathering information online from websites
> such as edmunds.com and carsdirect.com and finding
> out "fair" market values of those new sedans. However,
> I couldn't find information from them about any additional
> buying power of cash buying.
>
> Do those fair or market prices of new cars reported on
> websites include the bargaining power of cash buying,
> if any? Or, do I have some more room for negotiation by
> telling them I am paying in cash?

you always have room to bargain when youre paying cash. makes things
much easier, too... no dicking around with interest rates, tradeins,
money down, etc.

youd probably get a better deal on a last generation camry, if there are
some out there. the new ones rolling out right now, so no deals there.
>
> Thank you in advance for opinions and advices.
>

butch burton wrote:
> The big city dealers have always tried to add crap you do not want or
> need like fabric protection for $300, undercoating and paint
> protection. One crook in Mpls had a $500 Special Value Package which
> consisted of a few oil changes which was added on to every car's price.

the biggest and most shameless ripoff is the line marked:

"additional dealer markup"

Also, sometimes the "fit" of one car differs slightly from the "fit" of
another. Of course, we test drove one that was great, and I noticed the AC
sounded a bit off... had them check it, and somebody had grossly overcharged
it... surprising it had not blown out during the drive.
--
KWW
'65 Beetle (Jenny the IOC)
'64 Beetle (TBD the Blue Wave)
"Seth" > wrote in message
...
> > wrote in message
> ups.com...
>> Thank you for your comments. I now understand that I better
>> not tell the dealership that I am buying in cash.
>>
>> I'm not in a hurry at all, so I will take time using email and
>> telephone exclusively until the last moment of agreeing to a
>> deal. I don't need to test-dirve them. I know they are good
>> vehicles. That way, I can easily "walk out of" their court. (Hope
>> I can work it out this way, though.)
>
> Ummm, test drive one anyhow. Make sure the car is a proper fit for you.
> We've had a number of people here in the newsgroup who bought a car
> without an extensive test drive come to find the seat wasn't made for
> their ass, the ergonomics didn't fit them, etc...
>
> A car may be good for many people, but due to differences in body height,
> weight, width, back problems, etc... may not be good for you.
>
>

With financing options at zero percent (Toyota) around here, I don't
know why you would not consider using their money and not tie up your
own. Use your cash assets to either pay off creditors or invest in your
favorite financial vehicle. A new car paid for by cash usually can't
generate a dime in interest paid to you, or build equity assets for
building your net worth. If you choose a zero percent deal, finance all
you can, remember you are using their money and if you want to, you have
the option to pay it off with no penalty anytime within the term of the
loan. IMHO.







wrote:
> Hello,
>
> I plan to buy a new sedan (probably a Honda accord or
> a Toyota Camry) within a month's timeframe. I don't have
> a car now, so there's no trade-in. I plan to pay full
> in cash hopefully expecting the payment less than $22k
> out the door for an Accord LX-SE or a Camry LE, both
> with a four-cylinder engine and AT.
>
> I have been gathering information online from websites
> such as edmunds.com and carsdirect.com and finding
> out "fair" market values of those new sedans. However,
> I couldn't find information from them about any additional
> buying power of cash buying.
>
> Do those fair or market prices of new cars reported on
> websites include the bargaining power of cash buying,
> if any? Or, do I have some more room for negotiation by
> telling them I am paying in cash?
>
> Thank you in advance for opinions and advices.
>

"Ph@Boy" > wrote
> With financing options at zero percent (Toyota) around
> here, I don't know why you would not consider using their
> money and not tie up your own.

I thought those "zero percent interest financing packages"
always or often pre-set the price of the vehicle "for" the
buyer, such that it amounted to a rip-off. That is, the
buyer ended up paying a lot more for the vehicle than if
s/he negotiated with the intent to pay cash for the price
s/he negotiated.

In other words, compute the price you're willing to pay for
a certain model of car well in advance, in the privacy and
peace of one's own home, and read the terms of such
"zero-percent interest" deals carefully.

> Use your cash assets to either pay off creditors or invest
> in your favorite financial vehicle.

In this vein, if one has a credit card application with a
zero-percent interest offer for, say, balance transfers,
this might be something to strongly consider.

> If you choose a zero percent deal

Then you can be sure the total price is way above normal

If you do have cash you have always the option of offering lover price
and most of the time you get it - cash in hand is always cash

Problem is dealers are always dealers and you have to count your
fingers after shaking their hand

Best is use the japanese style and not shake their hands