Cash versus finance.. smaller dealer?

[jensjer]

Any benefit or additional ability to haggle when paying a large downpayment with cash, not a cashiers check..?
I've seen that people get better deals with Chrysler financial on the forums but nothing about cash.. Is it not king in relation to dealerships? Cause it's king everywhere else ; )

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[AmishMike]

Nope, they make back end money on financing.
The only time cash makes a difference is when you are writing a check for the full amount and they don’t have to invest any effort into it. For example if you have bought several vehicles and just wrote a check for each and they know you are good for it.
Actually cash is harder on them because anything over $10k and they have to report it.

 

[Snake Eyes]

Do what benefits you the most. Basically whatever in the end costs the least out of pocket whether it is the finance with a good discount that you can pay off early or cash with a good discount. We did a bank check for the full amount of the Gladiator (a custom order) and a trade in for the tax break. That gave us the least out of pocket in the overall long run. Most dealers though don't like cash cash (hard cash) if it is large amount. They like wires, bank/cashiers checks if you are not financing.

 

[punk'n]

I tried to buy a vehicle in cash several years back. Dealer said come back with a bank check. They wouldn't touch the cash (although they did look at it ).

 

[21RG]

Cash is not as great as people think. Financing is where they make money, points on the interest rate.

I make the best deal possible without bringing up outside financing or cash. Once the numbers are what they are I then bring in outside financing or cash. Cash is equal to a cashiers check, but easier to work with. Having to deal with $20k cash is a pain, having a $20K cashiers check is easy- just deposit.

So if you decide to finance through your bank, get pre-approved with the cash down you want. It will help your interest rate at the bank. Then make the deal at the dealership and opt for financing at your bank at the last minute.

 

[BourbonRunner]

I tried to buy a vehicle in cash several years back. Dealer said come back with a bank check. They wouldn't touch the cash (although they did look at it ).

There's some interesting reporting rules and cash is frankly a liability because of the chain of custody.

The only time cash is advantageous to a dealer is when they've just gotten it on the lot and aren't facing any financing costs on the inventory on hand.

 

[jensjer]

Nope, they make back end money on financing.
The only time cash makes a difference is when you are writing a check for the full amount and they don’t have to invest any effort into it. For example if you have bought several vehicles and just wrote a check for each and they know you are good for it.
Actually cash is harder on them because anything over $10k and they have to report it.

I guess that's what I'm saying.. why pay taxes on cash when they can just pocket it.. creative accounting is a thing.

 

[jensjer]

There's some interesting reporting rules and cash is frankly a liability because of the chain of custody.

The only time cash is advantageous to a dealer is when they've just gotten it on the lot and aren't facing any financing costs on the inventory on hand.

Right, It's a new order plan on picking it up before they have to incur any of their own fees like insurance .. etc. So I was hoping there'd be som haggle room.

 

[jensjer]

Cash is not as great as people think. Financing is where they make money, points on the interest rate.

I make the best deal possible without bringing up outside financing or cash. Once the numbers are what they are I then bring in outside financing or cash. Cash is equal to a cashiers check, but easier to work with. Having to deal with $20k cash is a pain, having a $20K cashiers check is easy- just deposit.

So if you decide to finance through your bank, get pre-approved with the cash down you want. It will help your interest rate at the bank. Then make the deal at the dealership and opt for financing at your bank at the last minute.

Sounds good, I like the idea of them assuming I'd finance the whole thing then pull out the duffle bag full of cash ; ) all singles.

 

[bleda2002]

Tell them you have the cash to pay it off. Then tell them you'll let them do the financing (so they get a spiff) and in exchange they give you a discount then you pay it off.

 

[jensjer]

Nope, they make back end money on financing.
The only time cash makes a difference is when you are writing a check for the full amount and they don’t have to invest any effort into it. For example if you have bought several vehicles and just wrote a check for each and they know you are good for it.
Actually cash is harder on them because anything over $10k and they have to report it.

If it's 5.00 check they have to report it...actually it's already reported automativally because it's a check. I'm counting on the owner popping his head out needing and lil extra cash before the holidays ; )

 

[Barnaby’sdad]

You’re probably going to get the best price via whatever financing deal they’re pushing.

If you’re flush (could pay via cash) and want the best possible deal…accept the financing deal (assuming there’s no early pay-off penalty) and pay off the balance as soon as the account/balance goes live online.

I put a few grand down on mine via check (wanted to start off “ahead”) and the dealer didn’t seem to get it. I think most of their customers just took the in-house financing and financed 100% of the purchase amount.

 

[AmishMike]

If it's 5.00 check they have to report it...actually it's already reported automativally because it's a check. I'm counting on the owner popping his head out needing and lil extra cash before the holidays ; )

Yes, a check does not require reporting.
Anything over $10K cash requires an IRS Form 8300.
Any dealer principle who is willing to sweep $10k under the rug is not somebody that I would want to deal with.

 

[Lunentucker]

I tried to buy a new vehicle on my rewards card to get 1.5% cash back and the jerks wouldn't take it ?.

If you already have a structured investment plan then put the bare minimum down and finance all that you can. Even at today's rates, your money is far better off working for you while you make payments.

 

[bleda2002]

If it's 5.00 check they have to report it...actually it's already reported automativally because it's a check. I'm counting on the owner popping his head out needing and lil extra cash before the holidays ; )

Given that they have to report the cost of the vehicle, no dealer is going to risk closure and jail time for what at most is a couple hundred bucks on their end as the amount they make on the actual vehicle is pretty low and they'd only be saving on the taxes they're going to pay on their gains. The finance, warranties, and extras are where the money is at

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