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

None, the dealer either get paid by you or a finance source. The dealer
earns a portion of the interest, as well, if you use one of his finance
sources. The thing that will influence the drive home price for you is
whether you have a trade or not. When a trade is involve the dealer must
consider its value when it is actually sold. Dealers consider 60 to 90
days, on average, before a vehicle will be sold. When there is no trade he
knows he will have money to pay off the manufactures invoice and what the
net profit will be the day you buy the new car, not 60 to 90 days later.
If you have a late model trade he most likely will not even get enough money
in total to pay off the manufactures invoice let alone his sales costs.

Are you in the US? If I were you I would shop around a bit more, 22K is a
lot of money to drive home a 4cy car, you cold drive home a V8 for that kind
of money. There are many good nicely equipped V6s on the market that can be
driven home for less than 20K and 4cy for around 16K


mike hunt


> wrote in message
oups.com...
> Hello,
>
<snip>

>
> 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.
>

In article .com>,
says...
>
>
>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?


I see no benefit to buying with cash. No matter if you have cash or
have loan, the dealer will get all their money before the car leaves
the lot.
----------------
Alex

SoCalMike wrote:
> the biggest and most shameless ripoff is the line marked:
> "additional dealer markup"

Hey, at least they're being honest. That's better than swindling some
naive buyer for rustproofing or an extended warranty.

Bucky wrote:
> SoCalMike wrote:
>> the biggest and most shameless ripoff is the line marked:
>> "additional dealer markup"
>
> Hey, at least they're being honest. That's better than swindling some
> naive buyer for rustproofing or an extended warranty.
>


heh... thats on top of "scotchgard", "permaplate" and "the gold kit"

Ph@Boy wrote:
>
>
>
>
>
> With financing options at zero percent (Toyota) around here, I don't

wheres "around here"?
what models are excluded?

> 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.

yup. just by letting my money sit in an emigrant savings account, im
making $75/mo for doing NOTHING.

Elle wrote:
> "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.

you can always go through costco, sams, AAA, and get their "special"
pricing, which is below MSRP, and usually just a little above invoice.
that price is fixed and doesnt change regardless.

THEN tell em you wanna qualify for the 0%.

if your credits spotless, should be a done deal.
>
> 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.
>
>

Gosi wrote:
>> 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
>

nah... the best way is arab style-

take a **** and wipe your ass with your hand. THEN shake their hand.

Mike Hunter wrote:
> If you have a late model trade he most likely will not even get enough money
> in total to pay off the manufactures invoice let alone his sales costs.

WTF?

they give $4500 for a tradein, then sell it for $7995.

how is that NOT making money? they make money coming and going.

"additional dealer markup"
Had to stop in a VW dealership years ago and the nice stealer had a VW
convertible with that caption on the new car price sticker. My friend
saw it first - we had stopped for a few pops and were feeling a little
tipsy - he started howling with laughter - I looked at it and said out
loud WTF - they asked us to leave.

Yeah I really love all the ways dealerships try to rip you off.

Have always bought with cash - it makes the transaction simpler and
gives the stealer less of a chance to do his thing.

But, why I saw the ad in paper saying that cash or trade a couple K $
off? It seems to me that cash may indeed have lower price on a car.