Why are people convinced they'll get more discount for cash?
Discussion
WeirdNeville said:
Vs Card the seller saves 2-3% in fees on the card transaction. SO that's a bit of leeway.
But cash isn't free to handle - someone has to count it (time), it has to be stored (safe, money), it has to be transported (collections aren't free, nor is cash-in-transit insurance), it has to paid in (time), it can be lost (theft or just miscounting).
Buster73 said:
Buying for cash really means the punter can buy it without taking the dealers finance
Fair enough, so, as the OP said, why expect a better deal for cash? when the dealer then only has one source of profit, the profit in the car. As both an ex car salesman, and as a car buyer, I can think of various ways of securing a good deal, but paying 'cash' ain't one of them, it's the very last thing that's going to get me a good deal.If I was a dishonest b
d, I would make the dealer think I wanted to finance the lot, and make him think I wasn't very rate savvy either, but insist on the best price for the car, regardless of anything else. I would allow the dealer to stitch me up on chuckie, PPI, GAP, Pro-pack, the lot, whilst giving the car away. Then on collection instead of signing the finance docs, I would produce a cheque.Edited by Balmoral on Thursday 23 February 20:50
Balmoral said:
Buster73 said:
Buying for cash really means the punter can buy it without taking the dealers finance
Fair enough, so, as the OP said, why expect a better deal for cash? when the dealer then only has one source of profit, the profit in the car. As both an ex car salesman, and as a car buyer, I can think of various ways of securing a good deal, but paying 'cash' ain't one of them, it's the very last thing that's going to get me a good deal.If I was a dishonest b
d, I would make the dealer think I wanted to finance the lot, and make him think I wasn't very rate savvy either, but insist on the best price for the car, regardless of anything else. I would allow the dealer to stitch me up on chuckie, PPI, GAP, Pro-pack, the lot, whilst giving the car away. Then on collection instead of signing the finance docs, I would produce a cheque.Edited by Balmoral on Thursday 23 February 20:50
The real devious ones take the finance and settle it in the first 14 days without telling the dealer. Proper evil that one.
Balmoral said:
Buster73 said:
Buying for cash really means the punter can buy it without taking the dealers finance
Fair enough, so, as the OP said, why expect a better deal for cash? when the dealer then only has one source of profit, the profit in the car. As both an ex car salesman, and as a car buyer, I can think of various ways of securing a good deal, but paying 'cash' ain't one of them, it's the very last thing that's going to get me a good deal.If I was a dishonest b
d, I would make the dealer think I wanted to finance the lot, and make him think I wasn't very rate savvy either, but insist on the best price for the car, regardless of anything else. I would allow the dealer to stitch me up on chuckie, PPI, GAP, Pro-pack, the lot, whilst giving the car away. Then on collection instead of signing the finance docs, I would produce a cheque.Edited by Balmoral on Thursday 23 February 20:50
Ari said:
Just looking at all the "if you pay cash you'll get a better discount" posts in the 24 year old buy's Bentley thread.
What on earth makes people think that?
A dealer doesn't care were the money comes from, financed cash isn't worth any less on his accounts!
And if he's providing the finance he'll get a commission, so if anything he's more likely to do a better deal with finance as he'll be making a bit extra.
Really cannot understand this perpetual "better deal for cash" urban myth, how does anyone think it makes any sense?
Don't know if it's an urban myth to be honest. I've always paid by cash and normally it goes hand in hand with an instant purchase and that's what a dealer usually seems to want (from my experience anyway).What on earth makes people think that?
A dealer doesn't care were the money comes from, financed cash isn't worth any less on his accounts!
And if he's providing the finance he'll get a commission, so if anything he's more likely to do a better deal with finance as he'll be making a bit extra.
Really cannot understand this perpetual "better deal for cash" urban myth, how does anyone think it makes any sense?
Whenever I've spoken to a main dealer they usually ask how I'm going to pay and it usually follows with, "well if you're paying with cash today then I can let it go for £X". Whether they would knock more money off for a finance deal is anyone's guess but I've rarely been disapointed with a deal. In fact one of the times I bought a Mitsubishi the salesman gave me a pretty stonking discount for cash and commented on how he wished every sale was as straightforward.
Maybe they don't always want the hassle of a finance deal?
Naive youth here but why would they knock loads off if you get a car on finance? is it the interest they will get from you paying it off over so long that makes up the difference?
Also if you did the finance thing then rocked up with a cheque instead would they be legally obligated to accept it? or could they say the price was quoted for finance only and knock it up for the cheque?
Also if you did the finance thing then rocked up with a cheque instead would they be legally obligated to accept it? or could they say the price was quoted for finance only and knock it up for the cheque?
TwigtheWonderkid said:
Cash can definitely cloud a sellers common sense. Especially private sellers.
Someone saying they won't take a penny under 5 grand is one thing, but sticking to it when someone is waving a £4000 wad of notes under your nose is quite another.
Private is the main thing, cash in the hand £4K is a huge amount it's at least a quarter of a kilo in weight and 200 notes (I think 10s might be pushing it but?). If someone waves that around and then doesn't get the discount they want a private seller is going to be thinking of the hassle and time involved selling again, dealing with another buyer, relisting or extending, MOT and Tax lapsing.Someone saying they won't take a penny under 5 grand is one thing, but sticking to it when someone is waving a £4000 wad of notes under your nose is quite another.
Dealer will want finance, broadspeed, drivethedeal etc offer prices £1K+ extra if you pay in cash and don't take finance.
Edited by tercelgold on Thursday 23 February 21:08
'We're paying cash' is my favourite phrase from customers.
Excellent Sir, as we no longer accept buttons and used tissues as payment.
If you take finance, the dealer makes commission. You'll get no extra discount using either method unless the dealer (sales manager) is stupid enough to forfeit chassis profit on the basis of someone taking finance.
At least 20% of people will say they want the finance whilst leaving a deposit and then get a bank loan before collection.
£9k is the limit for physical cash without having to go into the whole money laundering business. Debit cards are fine for any amount.
Sometimes on new cars 0% finance is subsidised which is the only instance that your 'cash/debit card' will save you some money.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff