Is it true that if you buy a car with cash, that they sell it to you for much cheaper?

Question

if you pay for the whole car in that same moment you buy it

Answer 1

At most dealers it doesn't matter.  They would prefer you finance, that way they can make money from the bank.  

So you can usually get a car cheaper by financing it, and then paying it off right away.

Answer 2

Cash put's you in control of the deal because it is a sure sale, so don't hesitate to wrangle the best deal, whatever you do, don't pay sticker

Answer 3

Won't be much cheaper.  They actually prefer you finance through them so they can s***w you later.  

Answer 4

I am in the auto industry and have great insight into this issue.  The general belief is that dealers will give you a price break if you pay cash.  This is not true, because a cash transaction takes away the potential for the dealer to make money on the loan.  There are many ways for a dealership to make money:  The selling price of the car vs the cost; the insurance/accessory add ons; the profit from the trade in; and the profit from bumping the interest rate.  When you pay cash, you are taking away one of the main ways a dealer makes money.  If he can't make money on the interest rate, then he needs to make it up another way.  If you don't have a trade in, you've taken one more profit center away.  Finally, if you don't buy any insurance products of aftermarket accessories, then you've forced the dealership to make a profit only on the selling price.

The best way to purchase a car is to use your credit union's buying service.  Since their job is to help you purchase a car with the least amount of hassles and at a fair price, how can you lose?  I believe this is a much better way than trying to negotiate with the salesman, the closer and the finance and insurance salesman.  Three against one - how can you win?

Good luck and give an auto buying service a try.

Greg

Answer 5

Not always, but in the majority of cases, it does help to pay cash.

The good thing about paying cash is that you can take advantage of cash rebates that manufacturer's offer. Many times, those rebates can't be combined with special financing, so its nice to know that you can get further discounts.

Best thing to do when negotiating with cash is to ask for invoice price + any manufacturer rebate that's available for that make/model.

Answer 6

Used car dealerships tend to love cash. So, I would say yes, if you are shopping at Big Joes Discount Auto World or some such place.

Answer 7

>>  is it true that if you buy a car with cash, that they sell it to you for much cheaper?

No.  It used to be.  The former cadillac salesman is talking about long time ago.

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when people bought cash, the dealer could NOT declare the purchase and not pay the income tax. But those loopholes are mostly gone.  In fact most dealers don't like cash that much anymore as they get no benefit but it has the disadvantage of being bulky and / or getting lost (stolen).

To many dealers a bank check is one lump sum so that is good as cash.

good Luck...

Answer 8

even if u buy for the same price as they wld have sold it to u with a loan u wld still save money by not paying the apr and the finance charge and etc

Answer 9

I pay cash for my cars and it does put you in control. You may or may not get it cheaper but the dealer knows money is in his hands if you make a deal and can sell for less because he has a sure deal. If you say no to his price he also know that he lost a sure deal.