I’m buying a used car for cash, I have 5 in large part by the purchase price. I’m looking for dealers to purchase. How much of a discount I can expect to arrive with cash, and what price should try to negotiate below (for example, if the list price is 6 cola could negotiate reasonable that a 5?)
Buying used car for cash, what to expect?
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I don’t know about the negotiating part but I do know you can’t expect to get a price reduction using cash because they like it much better when you finance; means more money in their pockets.
Dealers actually make more money if you finance the purchase, so there’s no incentive for them to offer a cash discount. Make the best deal you can, don’t tell them you’re paying cash until you have negotiated a price. If they know you’re paying cash, you may not get as good a deal.
If I was you i would consider a $12000 budget with a small payment. with a manufacturer certified dealer or you could be taking a bigger risk. if that is not an option, then buy a used Honda or Toyota without rust because these are proved to be reliable and spend $3000 so you can fix it if anything goes wrong. stay away from luxury cars as they are not more reliable and expensive to fix. stay away from Volkswagen especially.
Always keep your spending limit to your self and don’t discus it with a salesman. just ask for the best possible price and compare and if thy pressure you, take your business somewhere else. In this economy they depend on a sale more than ever.
Cash won’t be a bargaining tool. The dealers make more money with financing then they do with cash. So they want you to take out a loan. And if you borrow from a 3rd party lender you’ll pay by check anyway so that’s the same as cash to the dealer.
Expect to be able to negotiate the price down about 15% – 20%.
I would do everything I could to AVOID the used car dealers. Try to find an individual who is selling their personal car. They are more honest, the prices are easier to negotiate and you’ll generally end up with a better car.
One last piece of advise. Don’t buy ANYTHING without first taking the car to an independent certified mechanic who can do a pre-purchase inspection. This small expense can save you from making a HUGE mistake. These inspections will run anywhere from $40 to $150 depending on who does the work and how thorough the inspection process is.
Good luck.
You won’t get a discount for cash, but it’s a good bargaining tool. It let’s the salesman know you’re serious.
So you find a car you like — let’s assume it’s 6k, You go inside to the salesman’s cubical lay your money on the desk and say “write it up, Here’s 5K” (small bills are best, they make a bigger pile); he will turn you down, so pick up your money and walk out. Betcha don’t make it to the door, the salesman will be after you with a better deal (possibly involving financing)
You might be able to get the car for 5K with financing, then just pay off the note.
Once the salesman sees the money greed will set in and he will work his A$$ off to get it. just hold out until you get the deal you want.
Hoping for a discount or “negotiating down” the price of a used car because you will buy it using cash (rather than financing it) does not always translate into a savings. Dealers already have figured in a profit from their markup of a loan (cost to them as compared what you will be paying), so to lose that extra “gravy” by accepting cash, sometimes does not sit too well with their finance department.
More importantly, there are many more reasons as to why a car is “discounted”. First of all, it is probably overpriced to begin with, and the hope is that a buyer will pay the advertised price. It depends also on how long the vehicle has been on the dealer’s lot, they don’t like to pay the “flooring charges” month after month. Maybe the car is so unattractive (model, color, etc.) that it has been hard to sell.
In other words, it depends on just how much the dealer wants to rid himself of this particular car. So, bottom line is that any advantage to the buyer to pay cash to a dealership (as compared to a private sale) is not always at the top of the list.
Why buy from a Used car dealer, He has an overhead, his price will always be higher then a private seller and a private seller can do anything he wants when it comes to price, and alot of times you can get a good idea about the way the car has been taken care of from the owner not from the dealer who has no idea, so that car from a dealer might be 6000 but a private seller might want 4500, offer him 3000 go as high as 4000 or walk away with cash he’ll be chasing you down, you save 2000. but still run it by a good mechanic.
First of all, I am an owner of an used car lot. I have no idea how the others think that we want you to finance! The dealer will get the check from a finance company, the COMPANY will get the financing interest…not me. I sell a lot of vehicles to other dealers, you could certainly find a dealership with a good rep to buy from. You should ask for (1) A carfax (2) any warranties offered. Just realize taxes will be involved, for an example, my state, TN…taxes on 5,000 would be 500 bucks. Ask for an out the door price, includung tax, title fees. Hope this helps.