I want to buy a car but I don't want finance

[AC43]

Hi,

I went see a car yesterday and explained to the dealer that I had cash. He laughed and said "don't you know that dealers all want to sell finance as there's so little margin on the cars themselves".

I obviously get this but will this really matter? I didn't proceed on the car yesterday but my plan is to wait for the perfect car and pounce. With cash. But is there a risk that the dealer would prioritise someone who wanted finance?

So should I just play the game of taking out the finance and paying it off immediately? And does the dealer still get his margin if I do this?

Or can I just pay cash like I've always done?

[Ham_and_Jam]

If they want you to play the game, play the game.

I’ve done it before to gain a discount. Was happy to pay cash but they weren’t interested. So finance it was, and paid off within 30 days.

[bennno]

AC43 said:

Hi,

I went see a car yesterday and explained to the dealer that I had cash. He laughed and said "don't you know that dealers all want to sell finance as there's so little margin on the cars themselves".

I obviously get this but will this really matter? I didn't proceed on the car yesterday but my plan is to wait for the perfect car and pounce. With cash. But is there a risk that the dealer would prioritise someone who wanted finance?

So should I just play the game of taking out the finance and paying it off immediately? And does the dealer still get his margin if I do this?

Or can I just pay cash like I've always done?

Make an offer, advise its cash, simple

[ADJimbo]

Dealers do receive a commission on the selling of finance products to consumers. It’s not the end of the world if they don’t sell the finance as the dealer should still have a margin across the car.

If you’re buying new, then yes, there are some commercial advantages of using their finance products - deposit contributions, free servicing etc. but this is not really the case with used.

I wouldn’t change your purchasing habits based on a single discussion with a salesman personally. Do what you’ve always done…

[Quattr04.]

This topic has been done to death, dealers make barely any money on the car itself, they get a commission from the finance company

It’s common practice to take the finance out to get a discount off the price, or 2 years servicing, whatever they’re offering and then pay off the balance within 30 days

They can’t revoke the services, dealer might lose the commission but if it’s a game they want to play they can’t hold all the cards

[Percy Cushion]

Tell the dealer you'll need their finance. On the day of collection pay cash.

I did this when I bought my RS6. The dealer even fitted brand new alloys, pads and discs before collection.

[VeeReihenmotor6]

Take the finance, pay the finance off within 30 days. I'm pretty sure the dealer won't get their finance commission if paid off in such a short time period.

I've just done it as the dealer was a bit crap. Felt good

Also cancelled the warranty they mis-sold me. Got a phone call from the dealer about that and enjoyed telling them I'd also settled the finance last week as well. The car is still under manufacturer warranty and they said the warranty they sold me would start when the manufacturer one ends in a years time. Instead they started it on date of purchase so I was effectively doubled up on warranties.

Car was described as immaculate and I have spent time and money prepping the car so not all good news but every little helps soften the blow.

[supacool1]

VeeReihenmotor6 said:

Take the finance, pay the finance off within 30 days. I'm pretty sure the dealer won't get their finance commission if paid off in such a short time period.

I've just done it as the dealer was a bit crap. Felt good

.

This!

[AC43]

ADJimbo said:

Dealers do receive a commission on the selling of finance products to consumers. It’s not the end of the world if they don’t sell the finance as the dealer should still have a margin across the car.

If you’re buying new, then yes, there are some commercial advantages of using their finance products - deposit contributions, free servicing etc. but this is not really the case with used.

I wouldn’t change your purchasing habits based on a single discussion with a salesman personally. Do what you’ve always done…

Yeah it just seems like a load of shag and hassle for something in which I have zero interest.

[AC43]

bennno said:

AC43 said:

Hi,

I went see a car yesterday and explained to the dealer that I had cash. He laughed and said "don't you know that dealers all want to sell finance as there's so little margin on the cars themselves".

I obviously get this but will this really matter? I didn't proceed on the car yesterday but my plan is to wait for the perfect car and pounce. With cash. But is there a risk that the dealer would prioritise someone who wanted finance?

So should I just play the game of taking out the finance and paying it off immediately? And does the dealer still get his margin if I do this?

Or can I just pay cash like I've always done?

Make an offer, advise its cash, simple

Thanks, I'll do that. Life's too short.

[Rushjob]

Here in Spain, cars are often advertised with two prices - the lower, say 17,500€ is the finance price and then 18,500€ as the cash price.

[AC43]

Rushjob said:

Here in Spain, cars are often advertised with two prices - the lower, say 17,500€ is the finance price and then 18,500€ as the cash price.

Yeah, if the dealers here are so obsessed about finance, maybe they should do the same.

[ChevronB19]

AC43 said:

bennno said:

AC43 said:

Hi,

I went see a car yesterday and explained to the dealer that I had cash. He laughed and said "don't you know that dealers all want to sell finance as there's so little margin on the cars themselves".

I obviously get this but will this really matter? I didn't proceed on the car yesterday but my plan is to wait for the perfect car and pounce. With cash. But is there a risk that the dealer would prioritise someone who wanted finance?

So should I just play the game of taking out the finance and paying it off immediately? And does the dealer still get his margin if I do this?

Or can I just pay cash like I've always done?

Make an offer, advise its cash, simple

Thanks, I'll do that. Life's too short.

I know it is crap, but you are cutting your own nose off to spite your face. Buy on finance, then settle immediately. Unless your hourly rate is more than the potentially thousands you’d save by doing so.

[Mandat]

AC43 said:

Rushjob said:

Here in Spain, cars are often advertised with two prices - the lower, say 17,500€ is the finance price and then 18,500€ as the cash price.

Yeah, if the dealers here are so obsessed about finance, maybe they should do the same.

I believe that it's illegal to do that in the UK.

[Deep Thought]

AC43 said:

Hi,

I went see a car yesterday and explained to the dealer that I had cash. He laughed and said "don't you know that dealers all want to sell finance as there's so little margin on the cars themselves".

I obviously get this but will this really matter? I didn't proceed on the car yesterday but my plan is to wait for the perfect car and pounce. With cash. But is there a risk that the dealer would prioritise someone who wanted finance?

So should I just play the game of taking out the finance and paying it off immediately? And does the dealer still get his margin if I do this?

Or can I just pay cash like I've always done?

I bought an Approved Used Mercedes last week.

They'd the car reduced in price and i think they were hoping to get someone looking finance / a retailable trade in to offset.

I told them up front it was a cash purchase, no trade in, no finance.

They cant "make you" take finance. That said, it may reduce your negotiating ability but then if its the right car at the right price thats fine.

I just did a bank transfer and picked the car up the following day

[Deep Thought]

ChevronB19 said:

I know it is crap, but you are cutting your own nose off to spite your face. Buy on finance, then settle immediately. Unless your hourly rate is more than the potentially thousands you’d save by doing so.

How are you saving thousands by taking the finance?

[AC43]

Deep Thought said:

AC43 said:

Hi,

I went see a car yesterday and explained to the dealer that I had cash. He laughed and said "don't you know that dealers all want to sell finance as there's so little margin on the cars themselves".

I obviously get this but will this really matter? I didn't proceed on the car yesterday but my plan is to wait for the perfect car and pounce. With cash. But is there a risk that the dealer would prioritise someone who wanted finance?

So should I just play the game of taking out the finance and paying it off immediately? And does the dealer still get his margin if I do this?

Or can I just pay cash like I've always done?

I bought an Approved Used Mercedes last week.

They'd the car reduced in price and i think they were hoping to get someone looking finance / a retailable trade in to offset.

I told them up front it was a cash purchase, no trade in, no finance.

They cant "make you" take finance. That said, it may reduce your negotiating ability but then if its the right car at the right price thats fine.

I just did a bank transfer and picked the car up the following day

Thanks. I guess that's my point. If I've already decided it's the right car at the right price I just want to get the transaction done asap.

[Deep Thought]

ADJimbo said:

Dealers do receive a commission on the selling of finance products to consumers. It’s not the end of the world if they don’t sell the finance as the dealer should still have a margin across the car.

If you’re buying new, then yes, there are some commercial advantages of using their finance products - deposit contributions, free servicing etc. but this is not really the case with used.

I wouldn’t change your purchasing habits based on a single discussion with a salesman personally. Do what you’ve always done…

^^^^

Exactly this.

[Deep Thought]

Ham_and_Jam said:

If they want you to play the game, play the game.

I’ve done it before to gain a discount. Was happy to pay cash but they weren’t interested. So finance it was, and paid off within 30 days.

They cant not sell you the car because you're not using finance.

Was this on a new or used car, because the kickback on used car finance is tiny so i cant see that creating a discount scenario.

[AC43]

Deep Thought said:

ADJimbo said:

Dealers do receive a commission on the selling of finance products to consumers. It’s not the end of the world if they don’t sell the finance as the dealer should still have a margin across the car.

If you’re buying new, then yes, there are some commercial advantages of using their finance products - deposit contributions, free servicing etc. but this is not really the case with used.

I wouldn’t change your purchasing habits based on a single discussion with a salesman personally. Do what you’ve always done…

^^^^

Exactly this.

Thanks. My usual approach is along the lines of "I've seen you've put a new car up. I want to pay a deposit, come and see it tomorrow and, if it's as advertised, I'll pay for it there and then".

They get a quick sale, I get the car I want.