[GTI27]

wuts up guys,
i just joined the forum and am lookin to get a mkv gti at the end of may so i ecided to start doin research now. iv noticed that i could pick something up pretty decent for about 18-20k but unfortunately i dont think i have that much.
basically just wondering since i plan on paying upfront in all cash, how much u think id be able to bring the seller down since its cash???

 

[bcze1]

Re: how much will buying with cash save me??? (GTI27)

as opposed to what?

 

[ZoomBy]

Re: how much will buying with cash save me??? (bcze1)

Quote, originally posted by bcze1 »

as opposed to what?

as opposed to financing...(im assuming)

you probably can knock a few thousand off, but thats about it, it really depends on the dealer...id go at the end of the month if i were you though just to give your self that extra advantage (if dealers sell a certain amount of cars per month they get incentives, so if they only need that one more car, they might drop off that few extra thousand for you)

 

[silverA4quattro]

Re: how much will buying with cash save me??? (GTI27)

The seller doesn't really care, they get their money either way.
The seller isn't the one financing you (generally) even if you went that route. I financed my car through my credit union and I gave them a check for the car, so it was basically the same as giving them cash.

 

[Code3VW]

Why would the salesperson care if you are financing the car vs. buying it outright? This isn't a corner used-car lot. Salespeople get paid on units sold, as long as you are buying a car they don't care if you lease, purchase outright, or finance.

 

[Supplicium]

I saved 3-4k overall by paying upfront with cash.
Car sticker was $26,500. I made the offer of 25k cash out the door and they accepted. So if I financed, I would have paid extra for interest and probably would have financed it at 26.5. So 1,500 off the car plus interest savings.


Modified by Supplicium at 2:32 PM 3-17-2008

 

[mico]

Re: (Supplicium)

Sometimes cash price is higher thatn financing price, if we have a dealer cash for financing...

 

[silverA4quattro]

Re: (Supplicium)

Quote, originally posted by Supplicium »

I saved 3-4k overall by paying upfront with cash.

I don't see how...at least from the point of the purchase price of the vehicle.
You buy a car by negotiating the price first, then you take care of payment. You either pay cash or the dealer gets a check from the financial institution that gives you the loan (VW Credit, or a bank). The dealer makes their money no matter what, far as I know. And the company who loans the money makes interest from you if you finance.
Yes, you will save money on interest if you buy with cash, but I don't think that's what the OP is referring to.

 

[silverA4quattro]

Re: (mico)

Quote, originally posted by mico »

Sometimes cash price is higher thatn financing price, if we have a dealer cash for financing...

Now this I could see...maybe there would be a special if you got approved and financed through VW credit, you would get a cash back bonus.

 

[kevine310]

Re: how much will buying with cash save me??? (GTI27)

My salesman said he didn't care whether I paid cash or not. I think he cares more about the fact that I was willing to do business right NOW as opposed to go home and think about it for a few days.
So when negotiating, don't put too much emphasis on the cash, say something like I've got the money to buy it right now if you give a good deal...

 

[cb1111]

Quite simply....

...you may pay more when paying cash. In some cases the dealer has a financial incentive to finance you either through their own bank or through VW.
The basics still apply:
Negotiate the price of the car first
Next, negotiate the value of any trade
Finally, determine how you will pay for the vehicle.
The above also apply to any leases.
You should also determine if a loan will cost you less than any interest (minus taxes) will make you on that money. You may be better off leaving your money invested and getting a loan.....

 

[bcze1]

Re: Quite simply.... (cb1111)

^truth

 

[AngryScientist]

true statement, my online savings acount generates about 4% interest, my car was financed at 2.5 %. easy choice...

 

[Jimmy Russells]

Re: (AngryScientist)

Quote, originally posted by AngryScientist »

true statement, my online savings acount generates about 4% interest, my car was financed at 2.5 %. easy choice...

Bingo

 

[leegf]

Re: (RedRabidRabbit)

Quote, originally posted by RedRabidRabbit »

Bingo

/thread

 

[the.ronin]

Re: how much will buying with cash save me??? (silverA4quattro)

Quote, originally posted by silverA4quattro »

The seller doesn't really care, they get their money either way. The seller isn't the one financing you (generally) even if you went that route. I financed my car through my credit union and I gave them a check for the car, so it was basically the same as giving them cash.

Two words.
Dealer participation.

 

[ZoomBy]

its all up to the individual. what one persons bank account generates for interest and what they are getting financed at is not going to be the same for everyone

 

[Ducky 2.0T]

Re: (AngryScientist)

Quote, originally posted by AngryScientist »

true statement, my online savings acount generates about 4% interest, my car was financed at 2.5 %. easy choice...

Or 3 years at 0% like I did...

The best way to save money is to buy 3 or 4 cars (or more) at once.

 

[Jimmy Russells]

Re: (Ducky 2.0T)

Quote, originally posted by Ducky 2.0T »

Or 3 years at 0% like I did... The best way to save money is to buy 3 or 4 cars (or more) at once.

Sounds like you're spending a lot of money if you do that

 

[[email protected] USA]

Re: Quite simply.... (cb1111)

Quote, originally posted by cb1111 »

...you may pay more when paying cash. In some cases the dealer has a financial incentive to finance you either through their own bank or through VW. The basics still apply: Negotiate the price of the car first Next, negotiate the value of any trade Finally, determine how you will pay for the vehicle. The above also apply to any leases. You should also determine if a loan will cost you less than any interest (minus taxes) will make you on that money. You may be better off leaving your money invested and getting a loan.....

WOW we agree for once.
note on the leasing also a big one no one realizes.
Also remember when paying that much cash the dealer will have to file paperwork with the IRS.
Invest the money and just have an automatic withdrawal every month for the payment so you don't have to worry about it.. Even do the same for your insurance and just keep putting money into that account and you won't have to worry about a thing.

Another thing is normally people save money buying with cash because the sale would then go unreported. A pizza place for example or your hair dresser is probably filing 50% of what they make and paying cash saves them money so they may offer to extend some of the savings to you. This of course is highly illegal. Since dealers can't just pretend they never sold a car and somehow get you a title for it they just can't do it.
If you are talking about a used car from a private seller, they get cash from you, not smart anyway, or a check from your bang.. All equals the same in the end to them.