Edmunds Answers

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  • avatar Stever@Edmunds 03/03/10 9:31 pm PST

    Dealers make a profit on packaging financing for new car sales or by bumping the interest rate up, so going in talking about paying in cash may actually hurt the kind of deal you can get.



    I'd ask about payments, and say I'm keeping my options open and not indicate that paying cash in your only intent.



    Where Does the Car Dealer Make Money?

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Answers

  • isellhondas 03/03/10 7:28 pm PST

    A lot of people seem to think that there is some benefit to a dealer if the customer is paying cash.

    It makes no difference at all. We get paid either way.

  • jwisch 03/03/10 7:51 pm PST

    Most times NO. A dealer is getting payed for the car weither you Finance it or pay CASH. The dealer can actually be paid a Bonus for financing with a certain bank. This gives the dealer more incentive to sell you a car then if you pay cash. If you plan to purchase cash you need to find out what the rebates are so you make sure you get all of them and the dealer does not keep them or "SCOOP THEM" then work from there on the price. Do not tell them you are shopping them because you will get nowhere. Make reasonable discount offers and the dealers will work with you. Cars are not marked up much these days so when you go in asking for ten grand off they will just laugh at you and ask you to leave. Most cars these days are only marked up 2-3%.

  • morin2 03/03/10 7:51 pm PST

    Cash doesn't help at dealerships. But in private sales, cash in hand is a major advantage. I always back up a used car offer by counting out the cash so the seller sees it and knows I'm serious.

  • MrShift@Edmunds 03/03/10 8:30 pm PST

    It's a neutral tool in the toobox.

  • Stever@Edmunds 03/03/10 9:31 pm PST

    Dealers make a profit on packaging financing for new car sales or by bumping the interest rate up, so going in talking about paying in cash may actually hurt the kind of deal you can get.



    I'd ask about payments, and say I'm keeping my options open and not indicate that paying cash in your only intent.



    Where Does the Car Dealer Make Money?

    Source: 

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