Do you tell car salesman you are paying cash when you are buying a car?

Question

I am looking to buy a car. But I was going to pay cash for it. I want to get the best possible deal. SHould I tell them first that I am paying cash or wait and see?

Answer 1

If you want the best price.....on the vehicle you finally decide on......e.mail 5 or 6 of the dealers in your area and tell them you would like a fair quote on that specific vehicle...once you have received all the quotes, pick the lowest and call the manager of the dealership and ask him to put the quote in writing. This should ensure you the best price.

Answer 2

No!

Don't buy any car, new or used w/o reading up here:

http://www.usedcartips.org/

Also check out, "drive free, retire rich,"

http://www.daveramsey.com/etc/lms/drive_...

But, I DISAGREE with Dave Ramsey on putting money in a Mutual Fund, better to use an annuity, CD or money-market. I've had a Mutual Fund crash, taking with it my "investment" I now avoid the Stock Market, except for gambling money.

And remember that "Sales" are run to get people to think there is a limited time special they have to act on. Once you're negotiating, nothing is off the table.

A friend once told me, "when you earn a dollar your lucky to get 80 cents, but when you save a dollar you get the whole dollar, so it makes sense to work harder to save money than you do to earn it."

Answer 3

if you're buyin from a used car lot, ask for the prices and dont tell them how much you got in cash. let me give you an example. lets say that they are selling a car for 7,000 and you want it, tell them you'll pay 6500 for it in cash right here right now. they might tell the owner of the lot and they might agree cuz they want to sell the cars as soon as possible. they get encouraged to sell it cheaper when you got the money at hand. thats wat i did. i bought a 3200 car for 2400.

Answer 4

I used to sell cars so I'll give you a tip. It really doesn't matter if you're paying cash. What's important is the price of the vehicle. If you tell them you have cash they will try to get as much of it in their pockets as they can.

Here's some helpful information:

Markups: The competition is fierce out there now and people have access to a lot  of information. They can look up Kelly Blue Book values themselves. They can see what other dealerships charge for similar vehicles. So the markups are NOT as big as they were in the 80's and 90's.

The average used car markup is $2500. NO LIE. So if you pick a used car try to get them to knock about $1500 off. This gives them a $1,000 profit (that's fair, don't you think?) and you get a good deal. If you try to get them to knock off $5,000 to $7,000 you'll be shown the door most often.

New cars: The rebates you hear about are contingent on you FINANCING it. If you're paying cash then you don't get the rebate.

To take full advantage of a rebate do this. Finance the car. Sign the papers and drive away. 45 days later when the first payment comes due PAY THE WHOLE THING OFF. There is no pre-payment penalty and you got a great rebate.

Under NO circumstances should you tell the salesman you have cash to pay. Some people won't work with you at all and others will try to squeaze you till you pop (all that cash into their pocket that is).

Negotiate the price. Get it committed to. THEN tell them you have cash.

Hope this helps!

Answer 5

dave007's advice is excellent, and is what I did for my car. Though you should know that you don't even need to make a call. You can get car quotes online, like at the URL provided.

Answer 6

i wouldnt, if they ask say your not sure yet.  usually you get a better deal if you finance, but you could tell them your gonna and then just "change your mind" after you make a deal

Answer 7

This is for Leslie K....not all new car rebates are contingent that you finance with them. Occasionally they'll offer a little extra rebate if you finance thru the manufacturer. In fact you can finance a new car and get the rebate back to you, as in check in pocket.

Answer 8

When they ask, just say you can buy either way, you haven't decided yet.

Answer 9

tell them long as u got the money u dont like it dont buy it

Answer 10

Do your homework, and have some idea of what the car is worth.  Get the best deal you can, if it approaches what the car is worth and you're happy with it, accept the offer.  When they start talking finance, start counting out cash.  That's the only time they should know you are doing a cash deal, not before.

If they don't give you a price that is a fair one, you might try laying down a fair price, in cash, and telling them that is your only offer.  Bet you they pick it up and accept it.

Answer 11

They prefer buyers to finance. It brings more money to the dealership and it sort of binds the customer for a certain period of months or years. I never reveal that I'm going to pay cash until I get their absolute best offer.

Answer 12

Don't tell them you are going to pay cash untill they have made theie final offer.