Edmunds Answers

Answers

  • karjunkie 03/16/09 11:21 am PST

    Generally speaking, the dealer does not care if you pay cash as he can make money on the financing side. The trade in is usually what they do not want and will use it to "adjust" the total deal against you. So, what you want to do is get a good estimate of the trade in value of your car BEFORE you speak to the dealer. Go to edmunds used car section as well as www.nadaguides.com to get a good idea of the used car value first. In most cases, the "best" deal is to sell your car seperately to a private buyer closer to the retail value and then go to the dealer to buy the new car without a trade in.

  • demstillers 03/17/09 11:05 pm PST

    If you are actually going to pay cash, tell them only if the dealer is trying to work that into the conversation when discussing the new vehicle price. There are three items being negotiated- the new vehicle price, the financing (if there is any), and the trade in. When negotiating the price, telling the dealer you will be paying cash shuts down any suggestions they might have about how much you plan on paying monthly, etc. If financing, the dealer can lower the price, the frontend of the deal, and make their money on the backend of the deal by pocketing some of the increased interest rate. Make sure you know what amount to begin negotiations at and work your way up from there, not down from the msrp. Once your price has been negotiated, then talk financing if you will need to finance. Make sure you know your credit score and credit worthiness before entering the dealership. If not financing, skip right to the trade in. Make sure you have adequate outside appraisals and negotiate based on these.

  • kurtamaxxxguy 04/13/09 12:24 am PST

    As others here have said, you should hold off the answer to that until the end of the test drive and am being served (confronted?) by the Finance department.
    Usually the dealer will want to test drive the trade and look it over. Bad dealers will drag this out and possibly hide your keys to prevent you from leaving (is good to have spares). Good dealers will make it quick and painless.

ADVERTISEMENT

Top Car Financing Experts View More

Rank Leader Points
1. MrShift@Edmunds 1010
2. Stever@Edmunds 960
3. morin2 775
4. knowledgepower 705
5. karjunkie 320
6. isellhondas 295
7. boomchek 280
ADVERTISEMENT