Just like the topic states. If someone were to walk into a Ford dealer and find/order the car they want, if they were to literally lay down an evelope full of cash to purchase the vehicle with, would that person have more bargaining power than someone who comes in and would need the dealership to arrange financing and etc.? I would think that by paying in cash, it would be an easier transaction for both parties. And since there wouldn't be any dickering over APR and monthly payments, etc that you have when financing, that you might be more successfull saying to the sales rep "I'll give you $XX,XXX for this car right now in cash" and that said price was lower than someone trying to negotiate that same deal who will need to finance the vehicle.

Is my line of thinking unreasonable? Or am I on the right track here? I'm just curious how it would usually play out. So, for any of you who read this and reply who are Ford (or any brand) sales reps, how would you handle the situation if I walked into your place or contacted you with this same scenario?

 

To a private seller, I'd say yes. To a dealer, I doubt it. Money is money - they aren't going to deliver a car without payment in place.

 

<div class='quotetop'>QUOTE(John H @ March 4, 2006, 10:58 AM) Quoted post</div><div class='quotemain'>
Just like the topic states. If someone were to walk into a Ford dealer and find/order the car they want, if they were to literally lay down an evelope full of cash to purchase the vehicle with, would that person have more bargaining power than someone who comes in and would need the dealership to arrange financing and etc.? I would think that by paying in cash, it would be an easier transaction for both parties. And since there wouldn't be any dickering over APR and monthly payments, etc that you have when financing, that you might be more successfull saying to the sales rep "I'll give you $XX,XXX for this car right now in cash" and that said price was lower than someone trying to negotiate that same deal who will need to finance the vehicle.

Is my line of thinking unreasonable? Or am I on the right track here? I'm just curious how it would usually play out. So, for any of you who read this and reply who are Ford (or any brand) sales reps, how would you handle the situation if I walked into your place or contacted you with this same scenario?
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I dont think they will even take cash. I payed with a cashiers check.

 

<div class='quotetop'>QUOTE(TTU4.6 @ March 4, 2006, 1:07 PM) Quoted post</div><div class='quotemain'>
I dont think they will even take cash. I payed with a cashiers check.
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<span style="color:#009900">LOL</span> yah so did I. <span style="color:#009900">Cash</span> would scare them!

No, cash will not give you an edge, unless its the last day of the month and Manager wants the sale on the book for that month. [img]style_emoticons/<#EMO_DIR#>/dunno.gif[/img] And you would must likely have to go get a cashiers check. Although using A or X Plans will not make a difference. Paying cash at least you know exactly what you are fully paying to purchase the vehicle. And you own the vehicle clear and can start saving for the next one! [img]style_emoticons/<#EMO_DIR#>/04.gif[/img]

 

Paying cash to a dealer is passe. No longer has any shock value. The dealer earns more off a financed deal as they get a kick back from the bank and earn even more if they arrange financing.
When I purchased my last one I wrote a personal check. The dealer ran it through electronically and handed my check back to me stamped paid. I plan to go to the bank with the person that purchases my GT and consummate the deal there.

 

Most dealers hate cash deals. We have the ability to make a profit on the financing so most dealer prefer you to finance.

 

Yeah, dealer's want to finance it. I paid $11,000 Cash for my down payment. It's actually more of a headache. Anything over $10,000 cash is reported to the IRS, good chance I'll get audited this year. [img]style_emoticons/<#EMO_DIR#>/banghead.gif[/img]
So, I don't think it gives you more bargaining power. Maybe even less, since if the dealer knows how much cash you have, they would be less willing to go lower than that, since you already have that on the table.

 

<div class='quotetop'>QUOTE(dleal00 @ March 4, 2006, 5:44 PM) Quoted post</div><div class='quotemain'>
Yeah, dealer's want to finance it. I paid $11,000 Cash for my down payment. It's actually more of a headache. Anything over $10,000 cash is reported to the IRS, good chance I'll get audited this year. [img]style_emoticons/<#EMO_DIR#>/banghead.gif[/img]
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Dude, your safe. That's only if you withdraw and take the cash. If you purchased a "Certified Check" made out to a business for a purchase, no one cares. It was set in place to help track the bad guys. LOL You only get audited if your income minus the deductions you claim do not look reasonable to IRS.

 

Dealers make money on loans. I read somewhere that they earn part of the interest as a profit for selling the loan for the bank. Like if you get a 5.9% loan, the .9 part goes to the dealer (don't know if it's that much, just an example). So they can't stop you from paying cash of course, but it doesn't give you an edge.

 

I don''t think it really it matters to a dealer,they will get their money one way or another . Once you sign a contract you have committed to the purchase whether you give them cash, certified cheque or a finance contract . They get paid , you get title to the vehicle . In deals with individual private sellers , flash the cash and they could become very motivated to do business. Dealers will always have more prospects and more cars to sell.

 

In the end a close is a close, but they do want you to finance as they profit from it and it's easier to step you up in models/options when things are reduced to only $4 a month extra for this and that. Often they will extend better pricing to customers looking to finance. Just get to the point where you have a signed buyers order and are about to sign the finance agreement, and lay down your envelope or check for payment in full. They love that.

 

<div class='quotetop'>QUOTE(donkey @ March 4, 2006, 9:49 PM) Quoted post</div><div class='quotemain'>
In the end a close is a close, but they do want you to finance as they profit from it and it's easier to step you up in models/options when things are reduced to only $4 a month extra for this and that. Often they will extend better pricing to customers looking to finance. Just get to the point where you have a signed buyers order and are about to sign the finance agreement, and lay down your envelope or check for payment in full. They love that.
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[img]style_emoticons/<#EMO_DIR#>/rofl2.gif[/img] Oh yeah, that goes over big. [img]style_emoticons/<#EMO_DIR#>/crying.gif[/img]

 

Thanks for all the input guys. I guess I didn't think about the potential kickbacks the dealers get for getting the bank a loan. That make sense. The odds of me being able to arrange a cash transaction are remote at best anyways. I just wanted to know if there would be any incentive if I were to be able to make the string of events work to allow me to do that. And no, the "events" don't have to do with anything illegal. Lol