dealer question

[aleksdavies]

I had always assumed and perhaps more so in this environment that one could negotiate a discount from a dealer for cash (helps their cash flow), however wouldn't they prefer that you took their finance deal as it would be more profitable for them. Any thoughts?

[vwsurfbum]

they would ALWAYS prefer you to take their finance as it earns them more money! Cash to them means nothing and they get their money straight back from the finance company anyway.

[Simpo Two]

So bizarrely you might be in a better position to negotiate a lower starting point if you take the finance..

[Triple7]

Simpo Two said:

So bizarrely you might be in a better position to negotiate a lower starting point if you take the finance..

Yeah, but you'll end up paying the same amount. i.e less sticker price but interest charges, or a higher sticker price and no interest. Best bet is to get friendly with the finance guy and get him/her to ditch their commission and have the best of both worlds.

[a8hex]

When I bought my Jag on finance, I refused to even talk about the sticker price, we just talked about the deposit and the repayments. I'd put together a spreadsheet which did all the interest rate calculations so I knew where I wanted to be, I'd got some other finance quotes and used those to work out the price I wanted to pay. Then it was just haggle over the monthly figures. Then when I thought I'd taken him about as far as I could on that I got them to through in a couple of extra options on the car, they seemed to have more negotiating room with dealer fit options.