What are some tips for people able to pay for cars outright with cash?
A former car salesman reveals 4 tricks dealers use to get you to spend — and how to outsmart them
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Cash is King and you are in the drivers seat, pun intended. The most important thing to remember is that car dealers only make money when they SELL A CAR.
A car sitting on their lot cost them money. It ties up their capital. It depreciates. It raises their insurance and carrying cost. It's a $40,000 white elephant until someone signs the sales documents.
So to cut through the B.S., you can do what I did when I bought a car all-cash:
1. Type your name and email address on a piece of paper. (If you have a business card, you can staple it to the corner of the paper)
2. Under that write the model, options, and color you want.
3. Under that write the $ amount you are willing to pay.
4. Under that write:
'This is an all cash offer. No financing. No negotiation. This is my final offer. If you have the vehicle and agree to these terms, contact me and after I test drive the vehicle, if I like it, we will finalize the finer deal points and close in 24 hours. We will not discuss price. Any attempt to negotiate a higher price or sell me services will end our discussion and cancel the sale. If you do not agree with these terms, throw this letter away and make no attempt to contact me.
Thank you for your time and consideration.'
5. Run off 5 copies.
6. Put each copy inside an envelope
7. On each envelope write "All-Cash Tendered Offer"
Go to the 5 nearest dealerships that sell the car you're looking for. Introduce yourself to the sales person, tell them what you're in the market for, ask them for a business card, and hand them the envelope and leave.
Do not stand around and let them try to work you into a test drive that day. You want them to stew overnight on $XX,XXX all cash sale possibly walking out the door if they screw this up and do not follow your directions.
To some this reads like a harsh, cold, dickhead move - but this is business and you are in an environment were you have a disadvantage. They sell cars for a living. You do not. They have perfect information on pricing and their cost. You do not. Going into a negotiation battle with someone who knows the profit margin for every button, switch, and additional do-dad on the vehicle while you're trying to simple get the best price is a fools game.
A dealer has to pay minimum wage to the salesman waiting for you to show up and costs to inventory the car. Don't be an asshole trying to extort a low price out of them. We pay inflated prices all the time for phones, shoes, or clothes and don't give a shit but will haggle/extort a car dealer for a $100.
This is why they have to make their profit on the service side because there is no money selling cars. If they relied on car sales only they would be out of business.
The credit union is a non profit, the interest rate you can get is unrealistic compared to a dealer. However you pay somewhere else when the government has to jack your taxes up to get paid or cut services.
This is why they have to make their profit on the service side because there is no money selling cars. If they relied on car sales only they would be out of business.
The credit union is a non profit, the interest rate you can get is unrealistic compared to a dealer. However you pay somewhere else when the government has to jack your taxes up to get paid or cut services.
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This is DAMN good info and thanks for taking the time to reply to my question. I'm looking to buy a car all cash and this helped me a lot.
Credit is King.. You'll get the best deal if you opt to finance through the dealer--they'll give up more on the front end.. The F&I guy will try to make it up on the back end by trying to sell you some product (service contract, blah blah).. Decline. Pay the car off after 30 days 
Credit is King.. You'll get the best deal if you opt to finance through the dealer--they'll give up more on the front end.. The F&I guy will try to make it up on the back end by trying to sell you some product (service contract, blah blah).. Decline. Pay the car off after 30 days
Many banks or car dealerships themselves have clauses in the paperwork that penalize you for paying it off early just like many mortgages have the same clause. They seemingly give you a good deal up front to make money off you on the back end through interest and whatnot. Credit is NOT king in those cases.
When I was going to get my new car (didn't want to, but my last car's cooling system blew up), they didn't have a manual transmission and when I went to walk out the door, the manager chased me down the street trying to offer me every upgrade and $6000 off sticker price.
After some research I found this out. They throw that in there so they can get as much interest money as possible. I'll ride this out for one year to raise my credit score, then a cash payment for the 13th month.
question... say I buy an Audi from carmax can't I call the nearest audi dealership and get an Audi extended warranty from them? An I can compare Audi warranties from dealerships from all around the country because each Audi dealership will have different deductibles an prices offered right? How long do you have to purchase an extended warranty after you purchase a vehicle?
Also, earlier in the thread someone mentioned you don't have to purchase GAP thru the dealer. What else can you get outside of the dealership?
Also, earlier in the thread someone mentioned you don't have to purchase GAP thru the dealer. What else can you get outside of the dealership?
Before u buy the Audi from carmax, take the vin and call the nearest dealership to see if the Audi you are about to buy has an extended warranty... They ususally do, it will save you from having to buy carmax bullshit warranty
Thanks for the info. I just used Carmax because that was the dealership people mentioned in the thread and I was trying to illustrate my question. If they don't have a warranty, can I buy one from the car manufacturer dealership though, so I only have factory repairs?
Yeah you can buy one from Audi but be prepared to spend a grip.. The beauty of used cars is that the original owner bought all the dealer incentive bs and u as the used buying reep the benefits
Looking to get a a7 soon any pointers I wanna spend all cash on a used or cpo.....not with the leasing
Cash always rule.. Only good advice I can give to you is shop around for the best deal.. Don't let them know your paying cash.. You only discuss payment options when the price has been agreed upon and set.. Also do your due diligence on A7 reliability history, you can hit the Audi forums to get the real info from folk who own the cars
no... he is right, but 30 days is too short a period
insist on no early termination penalty and READ the contract- make it a deal breaker
with cash on hand, you can save $5k to $10k, by paying off the car in 3 to 6 months by financing, a good way to knock off the sales tax if you live in NY
Good thread a lot of real gems here.
The final sales price is still the total price, even if financing, and net due taxes.
How does it work in NY? Is there an exemption for financing a car? That would definitely change my purchasing strategy.
Also: If you own a business or are a 1099 employee, LEASING a car is a fantastic option.
As of 2015 the Federal Tax laws allow you to write off 80% of your monthly car payment as a business expense on your corporate taxes!
That's in addition to your fueling, cleaning, and maintenance expenses.
dealers will slash thousands off the price to close the deal during negotiations if the loan is going through them
depending on the bank they make thousands in incentives and residuals on the loan...
demand no early termination penalties or fees, give any reason you want but make it seem as though you plan on paying off the loan with a future bonus at least a year away or that you want the freedom to refinance for a lower rate in 18 months without penalty.
depending on the bank they make thousands in incentives and residuals on the loan...
demand no early termination penalties or fees, give any reason you want but make it seem as though you plan on paying off the loan with a future bonus at least a year away or that you want the freedom to refinance for a lower rate in 18 months without penalty.
Interesting read
Just to be clear, in my situation, I got my financing through my CU and therefore got GAP thru my CU as well. I don't know if you get financing from one and GAP from somewhere else.
You're not a troll....just an OREO
I drive cars until they start becoming money pits. Having the latest and greatest is not important. I purchased my last car brand new all cash back in 2006. Guaranteed I saved thousands over someone constantly leasing or financing.
How is paying interest on a depreciating asset any less stupid? By the time you've finished the car payments, you've paid more than you would have had you bought the car outright
Remember sir, interest is the penalty one pays for their excess consumption.
You're not a troll....just an OREO
Dude use the ignore button..
Great post
Just buy CPO and save the hassle
Listen to the Swine, Famous1.
Do it now. You'll never see me again.
Have a blessed 2016.
When I was young fellow I went to the Toyota dealership with my uncle. He was going to buy my cousin a Toyota Tercel as a graduation gift and my Aunt wanted a New car also.
Shut the fuck up Koonta Kentaay..
Shut the fuck up Koonta Kentaay..
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