How do you pay cash for a car?

[AnnaS]

We put down the down payment or the max allowed on our cc for the rewards and then we usually give them a certified/cashiers check.

 

[kinntj]

Oh wise one! I agree 100% with what you said. The salesman always wanted to know how we were paying. My answer was "I don't know, I haven't heard a good out the door # yet". He didn't like those words, out the door. Yep, I knew what I was talking about and was frustrating the man. Edmunds.com was my bible and getting quotes.

Big mistake was during the signing, I couldn't go in with DH, so he had a hard time negotiating the warranty. He called me and stated the warranty was $2,500 and I laughed my head off. I said $1,500 for the Premium and he's got a deal. They came down to $1,800 and I said no. It's funny DH was negotiating with the finance man through the phone with me. He came down to $1,600 and I said o.k. We got such a low, low price on the van, that I gave in within $100 on the warranty. He listed a bunch of extras and I kept saying no.

Paying by check is a great piece of mind knowing it's paid off. No better feeling than that. You have a vehichle that can get you to work and if you get laid off, you can go looking for a new job and one less bill to worry about. That's what my dad taught me. That car gets you to your job.

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.

 

[Kidnurse]

I've purchased a car with cash before and I've also financed before with a downpayment. Hands down, the easiest was the cash. Find a reputable dealer that you know and trust. (Ask family and friends for recommendations!) Next, go find what you want. If they don't have what you want, move on. Avoid talking about $ at first. If they do have what you want, of course act nonchalant about it but tell them that this could be something you're interested in. Once they get you in the office to sit down, first find out their asking price. After that, flat out tell them you have cash/check and are prepared to purchase a car right now, but ONLY if it's the right price. You are now in the driver's seat (pun intended), so basically low ball their price siginificantly. If they say no, thank them for their time and walk out the door. More than likely they got your contact information. Car dealerships want to tell very badly right now. You'll be called back within 1-3 days accepting your offer.

This worked for me paying cash and I paid 25% less than the asking price.

Good luck!

 

[Floridagal23]

Charged 5k deposit on my bmw x3 (amex), then overnighted cashier check to dealership (they keep the car for a few days, wash it, etc), then they drove the car up to my house, handed me the keys, super easy! We always buy our cars this way...so easy. All you have to do is pick out the car, charge the deposit and then they drive it right to your house!
We have done this for four cars, same dealer.

 

[CowboyCO]

I'm sure this sounds like an incredibly stupid question but I've tried to find the answer and am coming up empty handed. We've been saving up for a new car and are coming close to our goal. We're planning on purchasing the car new, at a dealer, but I'm curious what's the acceptable, normal way to go about it. I don't want to be embarrassed doing the wrong thing. Do you do a personal check? Finalize the deal and then go to the bank and get a cashiers check? Is there another way that I don't know of, ya know besides showing up at the dealership with wads of cash looking like a drug dealer! (I'm not by the way! lol) Thanks for your help!

Write a personal check. If there is any question at all, just ask. At this time I think a dealership would take food stamps to sell a car...

 

[pitermike]

Nice Information....

 

[Cheshire Figment]

I had a circumstance a few years ago where I got a "best bottom line" price from a dealer, which included all taxes and fees and transferring a plate. I came back the next day with a check to the dealership for a few hundred dollars less, including the VIN number of the car I wanted on the check.

I said: "Here is my counteroffer" and handed them the check. They then made a further adjustment to the price so that when all the fees and taxes were added it came to the amount of the check.

Cash (or check) in hand works wonders.

 

[battricia]

we just bought a car almost 2 months ago and i had the same question. not stupid at all!

the dealership let us write a check, no big deal. I couldn't believe it, I thought for sure it would be much more difficult. I'm pretty sure they hold the title until the check clears.

 

[Purseval]

We were going to buy a car and, after everything was finalized, we went to the bank to get a cashier's check. They wanted to charge us a fee to do that so we made them count out the cash in front of us. Then we took it into the room where you look at your safe deposit boxes and counted it again. Finally we took it to the dealer and got the car, actually paying cash cash

 

[DisneyCowgirl]

I've paid cash more than once and had different experiences. One time (at car max), they had me pull up my checking account online and show them that there was enough there to cover the check. A couple years later, at a Chrysler dealership, they just took my check no problem or questions. Last year, at a Honda dealership, they took my check, but said they would not give me the car until it cleared. This was OK because they needed to do some work on the car before I took it home and that was enough time for the check to clear.

 

[luvmarypoppins]

We always pay cash for our cars. But then again we always run the car into the ground before we get another one so there is no trade in value. My van is 18 years old and bit the dust so as soon as it gets a little warmer I am going shoping. We usually ask to put as much as we can on the credit car, no one takes more than $3k and they never take personal checks around here, always a cashiers check from the bank.

 

[hrh_disney_queen]

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.

We have tried in the past to use a credit card and you are right..they don't want to pay the fee. That would have been very nice back in the days when we got a rebate towards the purchase of a new car.

We have always written a personal check. They didn't even verify the funds or hold the car. Just let us drive away. I guess they still would have the title, so not a huge risk. Plus we used to purchase a new car every year so the dealer knew us.

 

[tinatark]

I know several people have said they've paid cash (green stuff) for cars - there is additional IRS reporting for cash transactions over $10k. Just FYI.

 

[Purseval]

I know several people have said they've paid cash (green stuff) for cars - there is additional IRS reporting for cash transactions over $10k. Just FYI.

We paid over double that in cash and didn't have to do anything different. If they told the IRS the IRS checked it on their own and never told us.

 

[Planogirl]

Wow, how are so many people on the Budget Board paying cash for cars? Kudos to all of you!

It's interesting that you can't charge a car.

 

[shortbun]

We were asked for a bank check-cashier's check. This way there is no doubt about the money getting into their account. Would you allow someone you did not know to write a check for ten's of thousands of dollars and turn merchandise over to them immediately?
Sorry-I wouldn't.

 

[Lachesis00]

I just brought cash which was great because they lowered the cost another $500. It retailed for $17,000+ (Kelly BlueBook) and the guy got it from his Aunt's Estate. He was wheelchair bound and the mini-van can't be fitted so he could drive his wheelchair up the back or side and into the driverseat. Something about electronics.

I ran an online report that showed no accidents (VIN #) and one previous owner (his Aunt who passed away a month after she paid for it). They paid for a tune-up (I had all the paperwork). We got a 2005 minivan with 8,000 miles in 2007 for $8,000 which is unheard of in Arizona. I love my van. I looked on Craigslist for a long time.

 

[battricia]

We paid over double that in cash and didn't have to do anything different

YOU don't have to do anything different, but if the bank hands you over 10k in cash they have to fill out documentation and send it to the government. This is done every time that much cash is received or given, no matter what, and most times the customer doesn't even know it's being done.

 

[IDoDis]

Wow, how are so many people on the Budget Board paying cash for cars? Kudos to all of you!

It's interesting that you can't charge a car.

Keep your cars for at least 10 years or more and put aside a set amount each month -- say $150.00. After 10 years you'd have over 18K saved.

You say you can't save that? Well, a car payment would be twice that amount, so YES, you can save that amount. Also, maintain your cars well so that they'll last and not be costly to fix. I've never financed a car, but we also keep our cars a long time. DH has a 2003 Toyota truck we paid cash for and we still have our 1996 Geo Prism that we are saving for DD when she starts driving. Bought a new 2010 Corolla a few months ago with the cash for clunkers money and paid the rest in cash.

 

[RitaE]

We usually write a personal check and then the dealership calls the bank and verifies the funds before releasing the car.

Since I didn't obtain my money by selling guns to terrorists or dealing with South American drug cartels, it really doesn't concern me if somebody at the bank or car dealership has to fill out government paperwork reporting my purchase. What are they going to do - send the FBI to my house because I bought a car?