How do you pay cash for a car?

[mommy2allyandaveri]

I've written personal checks for 3 new cars. They may ask you to bring a cashier's check, but they didn't ask me.

They will NOT take visa/mastercard even though they are supposed to because they don't want to pay the 3.5 fee.

For the last 2 cars I have bought, the dealer has allowed me to put $3k or so on my Disney Visa and write a personal check for the rest.

 

[sbell111]

Let's see. Four years ago, I paid cash for a two year old Grand Cherokee, $18000. Not counting oil changes, I've put about $3,500 into it for maintenance. It is still a beautiful, well running vehicle that I expect to last for several more years.

I could have leased the vehicle for 36 months for about $300 bucks a month. Assuming that I didn't have to pay for any maintenance, that comes to $10,800.

My Jeep for four years has cost me $21,500. The lease would have cost me $10,800. However, I have had my Jeep for a year longer than the lease and will certainly happily keep it for a few more years. Currently, KBB claims that it is worth between $9,410 and $12,830. Looking at these numbers, I think that buying the vehicle for cash was the way to go. After paying for the car, I owned an asset that is worth real money. After a lease, you don't have anything but a big hole in your wallet.

 

[d1gitman]

Let's see. Four years ago, I paid cash for a two year old Grand Cherokee, $18000. Not counting oil changes, I've put about $3,500 into it for maintenance. It is still a beautiful, well running vehicle that I expect to last for several more years.

I could have leased the vehicle for 36 months for about $300 bucks a month. Assuming that I didn't have to pay for any maintenance, that comes to $10,800.

My Jeep for four years has cost me $21,500. The lease would have cost me $10,800. However, I have had my Jeep for a year longer than the lease and will certainly happily keep it for a few more years. Currently, KBB claims that it is worth between $9,410 and $12,830. Looking at these numbers, I think that buying the vehicle for cash was the way to go. After paying for the car, I owned an asset that is worth real money. After a lease, you don't have anything but a big hole in your wallet.

leasing that definitely wouldn't have been worth it. an $18k vehicle shouldn't be $300mo. i am currently leasing a honda that lists at $28,500 for $315 mo. as a $0 out of pocket sign & drive.

Lets assume a 6 y old jeep (2 yrs old + 4 yrs. ownership) would sell for $9,500 used. That means cost of ownership currently is $21,500 - $9,500 = $12,000 for 4 years. $12,000/48mo = $250 per month. That doesn't equate to a whopping difference in my book vs. $300, which is definitely too much per month for a lease on an $18k vehicle. for the "extra" $50 per month, i would much rather be driving something from brand new to only 3 yrs old, under factory warranty, bumper to bumper. Oh, and in that 3 yrs. i only had to spend zero amount of time for repairs or scheduled maintenance (beyond oil changes).

if you factor that an $18k car should probably lease for $250 mo. then the lease would actually be equal to ownership. hmmmmm.

and yes, for the same expense i would take a $28,500 car over an $18000 car anyday.

 

[Moeluv4u7]

The reply I posted was for Honeymooner04 (OP) so if it didn't work out for you to read the "Paragraphs" that's fine- if anyone is getting any "good" info from it then great!
D1gitman knows what he's talking about- for those seriously looking into a purchase, finance, or lease- take the information that suits you and "drive on"- If it doesn't pertain to you then ignore it- I didn't intend to start a full-scale argument on what to do or not - just gave info--
D1gitman also has some helpful info
CAnn- If the price changed when you mentioned "cash" the dealership could have sold you the vehicle for that same price even if you were financing- no "extra money" is given to the dealership or made by the dealership on the vehicle because of the method of payment- Yes, in financing the rate can be raised and thus making money on the loan but NOT on the vehicle- if paying cash is what you are comfortable with then so be it- If they made you feel as if you were getting a great deal because of that then they did their job...
No, I am not at Camp LeJune OR at Hendrick... again just a bit of friendly information so Honeymooner can decide on her own what is best suited for her on her new purchase-
And YES- another paragraph to do it with-
Oh & yes! Our dealership has wonderful customers who refer their friends and co-workers and purchase from us again and again due to the type of business we do- Can't speak for all dealerships- & again- Yes! Whether the dealership is privately owned or a Corporate Dealership will make a difference in the deal you get- Not that a private dealer of Toyota can't sell for the same price as a Corporate or that they do things better or worse- but the two are very different when it comes to this- I again... suggest researching not just your vehicle choice but also your dealership choice before purchasing and again... listen to D1gitman- the internet is the best defense to "shopping" the deal is done before you get there- everything agreed upon and no smoke & mirrors- They KNOW you are shopping with other dealerships by internet as well - it is not in their best interest to try andmake money off you- if they won't sell at your price- another dealership will - someone is willing to make the sell just to move a vehicle off the lot- they can make money off the next guy...
Have fun w/ this post- Good luck to you Honeymooner04!

 

[d1gitman]

...D1gitman knows what he's talking about- for those seriously looking into a purchase, finance, or lease- take the information that suits you and "drive on"- If it doesn't pertain to you then ignore it- I didn't intend to start a full-scale argument on what to do or not - just gave info--D1gitman also has some helpful info
... listen to D1gitman- the internet is the best defense to "shopping" the deal is done before you get there- everything agreed upon and no smoke & mirrors- They KNOW you are shopping with other dealerships by internet as well - it is not in their best interest to try andmake money off you- if they won't sell at your price- another dealership will - someone is willing to make the sell just to move a vehicle off the lot- they can make money off the next guy...
Have fun w/ this post- Good luck to you Honeymooner04!

oh, you made my day people get hung up over ownership and don't like to recognize that a car (again, not including collectibles) is really nothing more than a service you are paying for. in the end it is money paid for services rendered for X amount of time. i wish your dealership were in my neck of the woods. i have never heard any dealer openly state that pre-negotiating is the way to go. you sound like an honest business (a rarity in any profession)

oh, and WAAAAAHHHHHH, your posts don't have enough paragraph breaks, WAAAAHHHHHHH. Anyone who listens to Howard Stern knows exactly what Artie Lange would tell those whiners to do (i can't repeat it here or even rephrase it)

 

[Moeluv4u7]

no prob D1gitman!
Would love to have you in our neck of the woods too- Believe me- our dealership makes money- We aren't the Largest Dealership on the East Coast in our Brand by letting deals go out the door- Word of mouth and reputation is what makes or breaks our business- Dealerships everywhere are still considered pond scum and we just want to change that mentality. Our company is part of a larger Fortune 500 company and has been in business for many many years- You don't get that way making customers miserable over there vehicle purchase-
Oh and for everyone else to keep in mind - D1gitman eluded to "ownership"- Until the bank has every penny from you- You never "own" your vehicle - so leasing is the smarter way to go in that mentality- AND you can lease no matter how many miles a year you drive- Just tell the sales or business manager you need a lease plan w/ 20K miles instead of 12 or 36K miles, etc- It is cheaper to put the mileage in your lease upfront than pay for mileage penalty at the end... Also, purchasing your leased vehicle in the end IS very many times the smarter thing to do- If you lease a vehicle w/ the residual value at lower than what it actually is at the end- You have the lower amount all set- Buy it, as he said, you know the history, how you cared for it , etc and if you really like your vehicle- you are doing much better to buy it- also, even if you purchase your vehicle outright w/ no lienholder- your ownership costs do not end there- gas, maintenance, occassional repairs, state inspections, tags, etc- you are always paying for your vehicle... Not everything is tax deductible- So again, keep in mind- do you want to pay for the vehicle that you just went and test drove or do you want to pay for the vehicle you drove into the dealership in- title in hand or not you are paying for something...

 

[d1gitman]

do you mind me asking what brand of vehicles you sell?

you hit the nail on the head,no pun intended,regarding reputation. i work as a cost estimator in construction. contractors don't rank too high inpublic opinion either. reputation is everythingin our industry, from a single person on their resume to the entire org. i tried car sales about 17 yrs ago. i love cars and am told by many i explain well and have common sense. the dealership i worked forwas hardcore in their tactics (4 square negotiating, no release policy, fully scripted, 4 hr. min. sales time per cust, etc...) their company meetings were horrid and they bashed virtually every customer by name behind closed doors. needless to say, i quit. i refuse to surround myself with people(workor personal) who can't make me better. sad thing is, if i could be myself in selling cars and make whati make now, then i would dothat as i love cars. howeveri absolutely love estimating as well. guess i am lucky to have more than onething in life that i enjoy that ismarketable.

no prob D1gitman!
Would love to have you in our neck of the woods too- Believe me- our dealership makes money- We aren't the Largest Dealership on the East Coast in our Brand by letting deals go out the door- Word of mouth and reputation is what makes or breaks our business- Dealerships everywhere are still considered pond scum and we just want to change that mentality. Our company is part of a larger Fortune 500 company and has been in business for many many years- You don't get that way making customers miserable over there vehicle purchase-
Oh and for everyone else to keep in mind - D1gitman eluded to "ownership"- Until the bank has every penny from you- You never "own" your vehicle - so leasing is the smarter way to go in that mentality- AND you can lease no matter how many miles a year you drive- Just tell the sales or business manager you need a lease plan w/ 20K miles instead of 12 or 36K miles, etc- It is cheaper to put the mileage in your lease upfront than pay for mileage penalty at the end... Also, purchasing your leased vehicle in the end IS very many times the smarter thing to do- If you lease a vehicle w/ the residual value at lower than what it actually is at the end- You have the lower amount all set- Buy it, as he said, you know the history, how you cared for it , etc and if you really like your vehicle- you are doing much better to buy it- also, even if you purchase your vehicle outright w/ no lienholder- your ownership costs do not end there- gas, maintenance, occassional repairs, state inspections, tags, etc- you are always paying for your vehicle... Not everything is tax deductible- So again, keep in mind- do you want to pay for the vehicle that you just went and test drove or do you want to pay for the vehicle you drove into the dealership in- title in hand or not you are paying for something...

 

[tonilea]

The reply I posted was for Honeymooner04 (OP) so if it didn't work out for you to read the "Paragraphs" that's fine- if anyone is getting any "good" info from it then great!

I don't think anyone was trying to be mean. Your style of writing is very difficult to read, since it isn't broken down into paragraphs. You obviously cared enough to write a long post, thus I assume you want people to read it.

 

[TheRustyScupper]

1) First, DO NOT tell the dealer you are paying cash.
2) Let them think you are financing.
3) They get 2%-5% back from the finance company.
4) They can reduce your car price and make it up in finder's fees.
5) After you sing the papers, THEN say you will write a check.
6) I have never had them request certified or bank check.

NOTE: If possible, apply as much of the purchase price to your VISA or MasterCard. You can get rebates or Frequent Flier Miles. No sense is leaving "money on the table". When the bill comes, pay it off with the cash you were going to give the dealer.

 

[debsays]

We pay cash as well and if you want to earn points on your credit card put it on there otherwise we write a check. Sometimes they may ask for a bank check.

 

[Moeluv4u7]

I don't think anyone was trying to be mean. Your style of writing is very difficult to read, since it isn't broken down into paragraphs. You obviously cared enough to write a long post, thus I assume you want people to read it.

Tonilea, I appreciate that and I understand- I am posting from my blackberry most of the time and have to edit what I can as it can be difficult-(I edit my blackberry siggy, any really hard to read and...I am not a texter) When I "post" I do also type at home even in broken language... Some people use abreviations everywhere- I use broken sentences...(and paragraphs) I enjoy the board- I am a Disney Fanatic!
But, I was trying to throw some more insight into a posters question from- me- a person who works in the industry- She doesn't live near me nor does it appear that she is interested in our particular brand- I will just say we sell Domestic- for the person interested... I have revealed too much of my location to post our Dealership & I really am not trying to advertise- (posting policy??) Not to mention, our dealerships brand is not where our principles in ethics came from- Some are personal ethics and what we have all been reared with and others are company policies- w/in our company we have many stores and many brands- Domestic & Import stores- So we do have a brand w/in our "company" that the OP is interested in - however, still, she is not in any of our areas- I wish everyone the best of luck in all of your vehicle "purchases" regardless of how you feel the best method of payment is for you-
BTW, my personal vehicle is financed- and not at 0%- but fair for me, I got a great deal- of course- and I still got an extended service plan as well as gap protection- (value determined if the vehicle is ever totaled is by the insurance companies, not the dealerships- as good of a deal that we got and as great as my auto ins. is... I want it paid off for me if it is ever totaled and I don't want my insurance company to determine the damages only come to 70% and they won't go the extra 5% so it's paid off by their gap- my gap is through a 3rd party that is impartial to the insurance company & the bank- your ins company is more likely to give those extra few percentage points if you have an outside gap protector than if it is covered by them- Oh! & the "replacement plans" some ins companies offer... check it out- they replace what the value of the vehicle is at the time it's totaled- NOT the price you paid for the vehicle- Okay, I know this has probably opened doors for more discussion but I really intended to only help- and Yes, tonelia- it is because I do care- just want my fellow DISers to be buyer savvy so they can have more Disney money!
btw- this was posted from laptop at home- I still only post in broken sentences and paragraphs though- if it's confusing- I apologize but the abbreviations on everything kill me too- I am adjusting and I get the jist of what someone is saying when it is something I am truly interested to know about- OR I ask questions when I don't...

 

[Muushka]

I don't think anyone was trying to be mean. Your style of writing is very difficult to read, since it isn't broken down into paragraphs. You obviously cared enough to write a long post, thus I assume you want people to read it.

Oh gosh no. I was one to mention it. As I get older, I really do have a hard time reading things that are not broken up. What I should have done was PM you and ask permission to break it up, that way it would have been easier for some others, old, decrepit like me

Tonilea, I appreciate that and I understand- I am posting from my blackberry most of the time and have to edit what I can as it can be difficult-(I edit my blackberry siggy, any really hard to read and...I am not a texter) When I "post" I do also type at home even in broken language... Some people use abreviations everywhere- I use broken sentences...(and paragraphs) I enjoy the board- I am a Disney Fanatic!
But, I was trying to throw some more insight into a posters question from- me- a person who works in the industry- She doesn't live near me nor does it appear that she is interested in our particular brand- I will just say we sell Domestic- for the person interested... I have revealed too much of my location to post our Dealership & I really am not trying to advertise- (posting policy??) Not to mention, our dealerships brand is not where our principles in ethics came from- Some are personal ethics and what we have all been reared with and others are company policies- w/in our company we have many stores and many brands- Domestic & Import stores- So we do have a brand w/in our "company" that the OP is interested in - however, still, she is not in any of our areas- I wish everyone the best of luck in all of your vehicle "purchases" regardless of how you feel the best method of payment is for you-
BTW, my personal vehicle is financed- and not at 0%- but fair for me, I got a great deal- of course- and I still got an extended service plan as well as gap protection- (value determined if the vehicle is ever totaled is by the insurance companies, not the dealerships- as good of a deal that we got and as great as my auto ins. is... I want it paid off for me if it is ever totaled and I don't want my insurance company to determine the damages only come to 70% and they won't go the extra 5% so it's paid off by their gap- my gap is through a 3rd party that is impartial to the insurance company & the bank- your ins company is more likely to give those extra few percentage points if you have an outside gap protector than if it is covered by them- Oh! & the "replacement plans" some ins companies offer... check it out- they replace what the value of the vehicle is at the time it's totaled- NOT the price you paid for the vehicle- Okay, I know this has probably opened doors for more discussion but I really intended to only help- and Yes, tonelia- it is because I do care- just want my fellow DISers to be buyer savvy so they can have more Disney money!
btw- this was posted from laptop at home- I still only post in broken sentences and paragraphs though- if it's confusing- I apologize but the abbreviations on everything kill me too- I am adjusting and I get the jist of what someone is saying when it is something I am truly interested to know about- OR I ask questions when I don't...

You do have a lot of great info. Next time, I will load you into my word and read it!

 

[tlbwriter]

We pay cash as well and if you want to earn points on your credit card put it on there otherwise we write a check. Sometimes they may ask for a bank check.

I've never had a problem writing a personal check. Now I'm wondering... if you wanted to use your CC to get points, could you use a CC check?

 

[angel12]

Dealerships make money on everything to do with a car deal. From the purchase price, to financing, to warranties and GAP. They want you to finance because they get a piece of the interest rate from the bank.

Financial officers (the ones who do the paperwork) hate cash buyers because they make their money exclusively from financing, warranties and GAP. So if you don't buy any of these things they essentially are working for free.

Don't worry about that though. The average finance officer is making $100,000 to $200,000 a year. What he doesn't make on your deal he'll make on another deal.

Salespeople also get a percentage of the "back-end" (warranties and GAP) so they want you to finance too.

The average cash buyer won't buy a warranty either, and they don't need GAP. So the dealership is really losing out on the deal. Which is why they want you to finance.

Financing is only good if you don't have cash. Or if you want to build your credit. Making payments on time (or early) on a car loan is a great way to build your credit up. But don't do it if you don't have too. Trust me, cash is always better if you can do it.

I used to sell cars in Phoenix so I know all the word-tricks they use to trick you!

Good luck to you - go get the car you want and don't let them push you around!

 

[pezheadmeg]

I've never had a problem writing a personal check. Now I'm wondering... if you wanted to use your CC to get points, could you use a CC check?

I bought 2 years ago at the end of the model year, needless to say, Ford lost money on me. However, they've offered 3 times to buy back my 06 focus for close to what I paid for it.

I could've paid for the whole car for a credit card once I wrote them a check for initial $700 deposit. The only reason they didn't take credit card deposits was the fact that the car was coming in as a dealer transfer. Otherwise the credit card would've been fine. Apparently several times in the same month a potential buyer had put the deposit down on credit card, the transfer process began and then they called the credit card company and canceled the sale.

For me buying cash was a no brainer, I had driven a fifteen year old hand me down car until it died on the road. And if that car hadn't died (it was a 92 civic that got 38 MPG on it's last tank of stop and go driving--I'm still mourning) I'd still be driving and saving up to buy the next car off the lot paid for. Yes I know the value depreciates, but at least I have something to show for the value depreciating. Granted I have 7 mile round trip commute, so my 06 car still has under 9000 miles on it.

 

[ExPirateShopGirl]

I've written personal checks and used a credit card. Honda dealerships seem to accept a wide variety of payment options. Their pricing is fairly structured, as well, so there isn't much wiggle room other than to decline extras. Costco, AAA, and most credit unions have a buyer's program that will net you the lowest actual cost. This usually involves a small amount over invoice. You have to know what you want ahead of time, so do your homework. Another way to find a low cost on a new vehicle is to price it out on carsdirect.com first. Buying Hondas you're much better off using the buyer's service to negotiate the deal. Other dealers are more desperate and may be able to negotiate further.

Good luck!

 

[tlbwriter]

I've written personal checks and used a credit card. Honda dealerships seem to accept a wide variety of payment options. Their pricing is fairly structured, as well, so there isn't much wiggle room other than to decline extras. Costco, AAA, and most credit unions have a buyer's program that will net you the lowest actual cost. This usually involves a small amount over invoice. You have to know what you want ahead of time, so do your homework. Another way to find a low cost on a new vehicle is to price it out on carsdirect.com first. Buying Hondas you're much better off using the buyer's service to negotiate the deal. Other dealers are more desperate and may be able to negotiate further.

This hasn't been my experience. We've bought 4 Hondas since 1999 and have never had a problem negotiating!

 

[ExPirateShopGirl]

This hasn't been my experience. We've bought 4 Hondas since 1999 and have never had a problem negotiating!

You'll never get better than the Fleet price on Hondas for a new model year. Ever. In fact, my neighbor across the street who is the fleet manager for a local Honda dealer says that 90% of the time thecostco deal is better than her own disoucnts. Then again, I always seem to end up getting the cars that have waiting lists. For cars that aren't waitlisted there's definitely more room to negotiate.

 

[tlbwriter]

You'll never get better than the Fleet price on Hondas for a new model year. Ever. In fact, my neighbor across the street who is the fleet manager for a local Honda dealer says that 90% of the time thecostco deal is better than her own disoucnts. Then again, I always seem to end up getting the cars that have waiting lists. For cars that aren't waitlisted there's definitely more room to negotiate.

We don't have any Costcos in our state, so that's not an option. But I bought a car that hadn't even been built yet - I had to wait for it to arrive from the factory - and still got a good deal.

 

[angel12]

i read your thread, now i haven't time so i'll think about this matter then i definetly give my suggestion.