Car dealerships question. Vol: Bend but don't break.

[nflowshoe]

Not trying to tell you what to do,  I personally wouldn't pay a car out in cash, you drop 20k on the camaro and as soon as you drive off the lot its worth 15k. If I was in your shoes I would talk to a credit union and tell them you want to finance the vechicle. They have rates as low as 1.9% if you qualify and they can cut you a check for the 20k and you can pay the dealer. You can put 5k down on the loan and owe what the car is worth

and still have 12k in your pocket

. If you want to get rid of it 2 years down the road you probably will get trade in value for what is left on the loan

.

 

[phen0m]

Originally Posted by JohnnyRedStorm

FYI, paying with more than 10k cash gets reported to the IRS.

He's not joking.. I wouldnt put over 10k cash on a car unless you can really afford to..

 

[capricdragon]

Originally Posted by nflowshoe

Not trying to tell you what to do,  I personally wouldn't pay a car out in cash, you drop 20k on the camaro and as soon as you drive off the lot its worth 15k. If I was in your shoes I would talk to a credit union and tell them you want to finance the vechicle. They have rates as low as 1.9% if you qualify and they can cut you a check for the 20k and you can pay the dealer. You can put 5k down on the loan and owe what the car is worth

and still have 12k in your pocket

. If you want to get rid of it 2 years down the road you probably will get trade in value for what is left on the loan

.

this

 

[antbanks81]

They will drop for the cash deal. Get yourself a cashiers check. Show them that's all you have. They will try to show you something else that's closer to your money. Don't budge. If they aren't offering you what you want, LEAVE. You will be better suited at 17k for a 21k car. Don't forget your taxes, lic fees and doc fees. Don't get hung up on options that you can put on at a later date.

GL, Camaro is nice. My cousin got a 2011 RS in black, took the standard wheels and dropped 22s on it last summer.

 

[zapatohead408]

Originally Posted by JohnnyRedStorm

FYI, paying with more than 10k cash gets reported to the IRS.

this. Whenever my uncle goes to car shows he is weary about this and somehow gets around it.
Is it if he pulls out more than 10k from the bank or if he purchases something over 10k?

 

[rko2004]

Originally Posted by nflowshoe

Not trying to tell you what to do,  I personally wouldn't pay a car out in cash, you drop 20k on the camaro and as soon as you drive off the lot its worth 15k. If I was in your shoes I would talk to a credit union and tell them you want to finance the vechicle. They have rates as low as 1.9% if you qualify and they can cut you a check for the 20k and you can pay the dealer. You can put 5k down on the loan and owe what the car is worth

and still have 12k in your pocket

. If you want to get rid of it 2 years down the road you probably will get trade in value for what is left on the loan

.

Sorry for the confusion guys.

I'll be going through my credit union. I trust I'm in good hands with them and they have tried to really work with me over time. Going through them gives me the option to name my price.

I have a few options. I can get a loan for at least $15K but probably higher if need be. I first asked about financing a Malibu for $15K but my brother talked me into waiting until summer and really do my homework on everything. From cars, to insurance, being a good driver (not just someone with a license) and etc. So I was thinking, what if I could get a Camaro near $15K.

Of course there is also the option of taking a cheaper loan with maybe less years and put money with it to even out. Pay more now, save later.

 

[rko2004]

Originally Posted by AntBanks81

They will drop for the cash deal. Get yourself a cashiers check. Show them that's all you have. They will try to show you something else that's closer to your money. Don't budge. If they aren't offering you what you want, LEAVE. You will be better suited at 17k for a 21k car. Don't forget your taxes, lic fees and doc fees. Don't get hung up on options that you can put on at a later date.

No doubt. I'll walk out just as easy as I walked in. They're other cars and lots who will give me what I want.

The Malibu is a very available car. I have no problem taking it.

 

[crcballer55]

Originally Posted by zapatohead408

Originally Posted by JohnnyRedStorm

FYI, paying with more than 10k cash gets reported to the IRS.

this. Whenever my uncle goes to car shows he is weary about this and somehow gets around it.
Is it if he pulls out more than 10k from the bank or if he purchases something over 10k?

It's both.  Either way, the IRS knows how much you made that year and how much is in your bank accounts whether you pulled out $10K at once or over a couple weeks.  It's really not as big of a deal as people make it out to be.  Now if you pull out $9999, then you'll start having problems since that requires a Suspicious Activity Report to be filed instead.

 

[methedy23]

- The Malibu is due for a redesign in the fall.  Accordingly, I would either wait for the '13 model or mention your knowledge of
an all-new vehicle on the horizon and use that info to help chop the price down considerably.

 

[jking0821]

Originally Posted by Jd0t86

Show him the money. Seriously, you show him you have the cash ready he will def try and make a deal. Yes financing is a dealerships way of making money but thats over a certain amount of time and they have to go through a bank and there are more steps. If you show him you're serious and have the cash I think you should be fine. You have to remember "dealership" & "prep" fee's range from $1,000-$3,000 and thats a BS way of them to charge you extra.

I bought a 05 Acura TL that was valued over $18K for $15K cash few years back

Also when spending over $10K, they'll make you sign a form and it has to get reported by the Dealerships finance manager, Prior to dropping $10K + speak with him I'm sure he'll find a way to get around that. The one I dealt with was pretty cool about it.

Is this if you actually drop cash?

I bought my 09 corolla used for $15.2 "cash".  I went to Bank of America.  Said i need a certified check.  They wrote me one up walked into dealership paid for my car with it then walked out.  I don't remember signing anything other then the title.  I could be wrong though.  But is there a difference between using a personal check or a certified check? I would assume the certified check from the bank basically means its not a scam and i am good. 

Cars are terrible investments honestly i don't think i will ever buy a car new.  My car was an 09 bought last year with 12k miles used as a loaner car by the dealership.   So it had 0 owners was cleaned an maintained by the dealership every time it was lent out.  Paid $15.2k when at the time a brand new 2011 corolla S was listed at 20k.

 

[crcballer55]

Originally Posted by Jking0821

Originally Posted by Jd0t86

Show him the money. Seriously, you show him you have the cash ready he will def try and make a deal. Yes financing is a dealerships way of making money but thats over a certain amount of time and they have to go through a bank and there are more steps. If you show him you're serious and have the cash I think you should be fine. You have to remember "dealership" & "prep" fee's range from $1,000-$3,000 and thats a BS way of them to charge you extra.

I bought a 05 Acura TL that was valued over $18K for $15K cash few years back

Also when spending over $10K, they'll make you sign a form and it has to get reported by the Dealerships finance manager, Prior to dropping $10K + speak with him I'm sure he'll find a way to get around that. The one I dealt with was pretty cool about it.

Is this if you actually drop cash?

I bought my 09 corolla used for $15.2 "cash".  I went to Bank of America.  Said i need a certified check.  They wrote me one up walked into dealership paid for my car with it then walked out.  I don't remember signing anything other then the title.  I could be wrong though.  But is there a difference between using a personal check or a certified check? I would assume the certified check from the bank basically means its not a scam and i am good. 

Cars are terrible investments honestly i don't think i will ever buy a car new.  My car was an 09 bought last year with 12k miles used as a loaner car by the dealership.   So it had 0 owners was cleaned an maintained by the dealership every time it was lent out.  Paid $15.2k when at the time a brand new 2011 corolla S was listed at 20k.

Since there's already a paper tail with the bank, the dealership isn't required to do anything.  The whole purpose of the cash reporting is for that exact purpose.

 

[zapatohead408]

Originally Posted by crcballer55

Originally Posted by zapatohead408

Originally Posted by JohnnyRedStorm

FYI, paying with more than 10k cash gets reported to the IRS.

this. Whenever my uncle goes to car shows he is weary about this and somehow gets around it.
Is it if he pulls out more than 10k from the bank or if he purchases something over 10k?

It's both.  Either way, the IRS knows how much you made that year and how much is in your bank accounts whether you pulled out $10K at once or over a couple weeks.  It's really not as big of a deal as people make it out to be.  Now if you pull out $9999, then you'll start having problems since that requires a Suspicious Activity Report to be filed instead.

they don't know how much you made if a large portion of it is in Cash. So what I'm saying is, is there anyway to get around the IRS knowing you're spending over 10K

 

[crcballer55]

Originally Posted by zapatohead408

Originally Posted by crcballer55

Originally Posted by zapatohead408

this. Whenever my uncle goes to car shows he is weary about this and somehow gets around it.
Is it if he pulls out more than 10k from the bank or if he purchases something over 10k?

It's both.  Either way, the IRS knows how much you made that year and how much is in your bank accounts whether you pulled out $10K at once or over a couple weeks.  It's really not as big of a deal as people make it out to be.  Now if you pull out $9999, then you'll start having problems since that requires a Suspicious Activity Report to be filed instead.

they don't know how much you made if a large portion of it is in Cash. So what I'm saying is, is there anyway to get around the IRS knowing you're spending over 10K

Not unless they're willing to risk "aiding and abetting terrorists".

 

[al audi]

A malibu redesign is right around the corner, its nice too. Camry, Accord, Altima better step it up. Sonata already killin em an the new malibu will too.

 

[cabron james 23]

how much do you guys think I can get a $16k car down to by paying straight cash?

 

[mojodmonky1]

mentioned before but why would a dealership be incentivized to sell a car for less just cause you are paying cash? (thats assuming you dont have scumbag credit and you can get approved for financing).

whether the money is coming from cash or its coming from a finance company/lender, its all the same. i dont know if the "cash is king" theory applies here.

also, i may be wrong, but im pretty sure most dealerships dont have in-house financing. If you walk into ABC Toyota dealership and want to get financing, its not like that dealership is holding your note/loan themselves. They are just going to refer you to Toyota Motor Credit (via their finance dept) for financing and the dealership will get some sort of commission or kickback for it.

 

[sn souljah]

My friend got this 3 series BMW down from 32,000 to 24500 out the door price ..i was shocked..my boy said it was a combination of the dealership being desperate and also that my friend had hella dirt on dude who sold it lolAdditional info :The car was bought on the last few days of the month, and it only had 11,000 miles on it . Also it was previously a loaner car by the BMW dealership

 

[angryostrich]

Go to local barnes and nobles pick up consumer reports car buyers issue, look at dealer costs for the car  of  your choice , profit.

http://www.consumerreport...price/overview/index.htm

 

[mases apprentice]

Originally Posted by Zyzz

bad example because camaro's are popular. cash isnt always king. they are going below $20k probably not even dropping the price at all.

financing they make money, cash they dont.

no they love cash,

Cash=instant

finance = a little at a time, and possibility of not paying.

 

[k town trash]

Does this apply to trade ins? Like let's say my paid off car is worth 17k and the car I wanna buy is 50k. Would they decrease the price of a car along with increasing my car value? Let's say I'm financing the rest.

 

[mojodmonky1]

Originally Posted by mases apprentice

Originally Posted by Zyzz

bad example because camaro's are popular. cash isnt always king. they are going below $20k probably not even dropping the price at all.

financing they make money, cash they dont.

no they love cash,

Cash=instant

finance = a little at a time, and possibility of not paying.

again...

im pretty sure that the majority of dealerships DO NOT finance deals in house.  They refer it out to the financing arm of the manufacturer or another lender.  If you look at your credit report after you finance a Ford through the dealership, it doesnt say XYZ Dealership, it says Ford Motor Credit.  If anything, a dealership might finance deals in-house, package together a bunch of these loans/notes and then sell the portfolio to a lender like Ford Motor Credit.  This means they get paid full pop and hold no risk of default.  The lender holds the risk of default.  

K Town Trash wrote:

---

Does this apply to trade ins? Like let's say my paid off car is worth 17k and the car I wanna buy is 50k. Would they decrease the price of a car along with increasing my car value? Let's say I'm financing the rest.



It depends.  You (or the dealership) may be able to use the trade-in as a negotiating chip.  In lieu of lowering the sales price of the car, they might offer to give you more trade-in value so that youre net-finance/purchase price is lower.

 

[lebronh8er]

Do your homework and call around and haggle over the phone first. But, cash offers will make them think twice. Also find out when their tax time is, not like yours and mine. They try to get everything off the lot for that, steep price to pay for having too many cars on the lot, uncle Sam loves to get his anyway he ca, greedy government. Haggle, haggle, haggle, and do not be afraid to walk away if you don't get what you want. Cash is good, but don't forget they also make money on financing the deals for 5, 6, 7 years, cash is a catch 22, but be firm and walk if you don't get your price.

 

[crcballer55]

Originally Posted by Mojodmonky1

Originally Posted by mases apprentice

Originally Posted by Zyzz

bad example because camaro's are popular. cash isnt always king. they are going below $20k probably not even dropping the price at all.

financing they make money, cash they dont.

no they love cash,

Cash=instant

finance = a little at a time, and possibility of not paying.

again...

im pretty sure that the majority of dealerships DO NOT finance deals in house.  They refer it out to the financing arm of the manufacturer or another lender.  If you look at your credit report after you finance a Ford through the dealership, it doesnt say XYZ Dealership, it says Ford Motor Credit.  If anything, a dealership might finance deals in-house, package together a bunch of these loans/notes and then sell the portfolio to a lender like Ford Motor Credit.  This means they get paid full pop and hold no risk of default.  The lender holds the risk of default.  

Even with the financing, they have to run your credit and go through all the hoops and time it takes to apply for and approve the financing.  With cash, you're in and out and they can send the sales person back out to get another deal.  Not every dealer will operate that way though.  In that case, you just walk off the lot and buy the car somewhere else.  Cars are essentially a commodity so unless that dealer provides something nobody else does there's nothing keeping you there.

 

[damnitzdom]

Originally Posted by RKO2004

Originally Posted by MoreUptempo

i remember reading a while back on NT of dude who previously worked at a dealership. as he explained it, there's actually a decently exact science to the entire haggling process, and a certain number (% of some ++%@ invoice i dont know) that they aren't willing to go below.

hoping someone who has experience working in a car dealership chimes in here, i'd love to hear

I remember that but with the search feature it'd take forever.

Someone else who has this knowledge would be great.

[h3]Confessions of a car salesman aka Car Buying Guide *now 20*[/h3]

i was in the car business for a while and ive experienced a lot of shady things. obviously i cant say all dealerships and salesmen are the same, but this is pretty much what you should expect. if you disagree with anything i have to say, post it and ill tell you what i can but theres just way too much info to post in one shot. i know a lot of you will say "oh yeah, but this is the obvious. everyone knows this" but thats not what ive experienced. here's my car buying commandments:

1. do your homework. people that do not do their homework get ripped off. just because a dealership tells you "this car was the highest rated suv in its class with a 5 star crash test rating" doesnt mean that its true. decide what your number 1 option is in a car and have a few backups. sometimes the car you want isnt the best suited to your needs

2. dont become an emotional buyer. i know a lot of you NTers are young, therefore you dont really have a lot of established credit/bad credit. dont get so excited that you were approved for a $30k vehicle that you just let the salesman dictate how much youre going to pay and dont get so excited that youve finally found the car you want to buy that you let yourself get walked all over in terms of the price/payments. emotional buyers are the ones that get ripped off the most. 

3. the saleman is NOT your friend. the job of a saleman is to sell you a car for the most that you can. your job, as a consumer, is to buy a car for the least amount of money as you can. he's there to do his job so if he says "yeah i'll hook you up with a good price" more likely than not, he's just saying that to get you into his office. he's there to put you together (car dealership talk for ripping you off). dont believe what he tells you

4. dont believe the "stupid" salesman. the most effective tactic i used to "put people together" was playing stupid. i had a lot of knowledge on the cars i sold, but i didnt use any of it. when people asked "whats the horsepower" i would reply "i dont know, i'm still new here." if consumers think you know nothing and you're new, they have confidence that they can get a good deal. beware, they know more than you think

5. the lowest they can sell a car at is usually not the lowest. dealerships will take advantage of the fact that they know you want to buy the car. theyre going to try to milk you usually having faith that you will not go anywhere else to buy it. youve already test drove and fell in love with the car, but dont let that stop you from getting yourself a good deal

6. bargain, bargain, bargain. more likely than not, theyll use a sheet of paper called the 4-square to try to bump up the price a little bit. theyre going to tell you with X amount down youre going to need to pay X per month because thats what the bank wants. dont let their price cause you to bump up what you can afford. if you want to pay $200/month then tell them thats what you can pay. dont tell yourself "oh another $20 wont hurt" because it will. $20 over 60 months is $1200. do you want someone to take $1200 out of your pocket? 

7. walk out when you dont get the price you want. after you do that theyre going to come after you or call you back 100% of the time offering you a much better deal. remember, the lowest they can sell you the car at is usually not the lowest

8. dont buy accessories as a a part of the deal. i remember one time i sold a car the guy wanted an alarm so we installed that and a few other accesorries, but WE CHARGED HIM $5000. thats what happens when you dont read the contract. you can get better and cheaper parts anywhere else. same thing goes for extended warranties. most of you will trade in your car or sell it so whats the point of extended warranties after the first 3-5 years?

9. read your contract before you sign it. i know youre excited to drive off in your new car, but read the contract. dont initial it if you dont agree with it. unknowingly, i had a customer sign a contract which stated he was buying a car for $19,000 OVER THE STICKER PRICE. theres so many different stories i can tell you about people coming back complaining about their contract, but thats their fault for signing it

10. shop around...dont limit yourself to 1 or 2 places. many will tell you "go to another dealership, they cant offer what were offering." when they say that. call the other dealership and put them on speaker. ask them if they can, but realize they might be pulling your chain too

11. youre in the drivers seat. they need you more than you need them. if you realize that, then youve already won the game

12. wait until the end of the month to buy a car. just like many other jobs, their jobs have quotas. i once sold a car $3000 under MSRP because i had to push one more unit out to get my bonus. better yet, go the last day of the month at night to get the best deal possible. youll be surprised how differently they will treat you

13. MSRP means nothing. sure that BMW says it costs $40k, but thats what you would pay if you had the cash. monthly payments is a whole different ball park, especially if youre going to come in with only $3000 down. once again, take a look at your contract to see what youre really paying. it might be $7k more than sticker. 

14. talk to the fleet manager when you walk/call in. you can often buy a car in the range of $300 under invoice depending on how the deal works out. this is one of your best bets if youre looking for a good deal. even if you have to wait for the car to be transferred/shipped in its clearly worth every penny. 

15. find the value of your trade-in with kelly bluebook. too many times ive seen the dealership tell the consumer how much their trade-in is worth. many will even print out a false kelly bluebook value sheet to show you. find out how much your trade-in is worth before you go in.

16. dont let the dealership use your credit against you. sure you have bad credit, but dont let them tell you "with your bad credit, this is the price youre gonna have to pay." theyre going to use anything they can against you to make sure you pay the price they want

17. put enough money down to cover taxes and licensing. if you buy a car at $20k in the LA area, your tax and licensing (about 11% combined) will be about $2200. if you dont cover the whole amount, it will be financed into your payments. do you really want to pay taxes for taxes?

18. always get a carfax. enough said.

19. dont fall for the promotions. we used to send out $1k online gift certificates in the mail telling consumers to come in and pick up the prize. it turns out that you could only use it on a designated website that charges $50 shipping for stuff like wine glasses. then we told them they could use it towards a down payment and people would fall for it. if its too good to be true...

20. check your credit union for a loan. usually if you finance through a bank that the dealership provides it will be more than if you try your local credit union

http://niketalk.com/topic/14258/Confessions-of-a-car-salesman-aka-Car-Buying-Guide-now-20

post was from 4/06. 

I wonder if its still relevant.