Will you get a discount if you pay the dealer in “Cash”?
Consumers often tell me that they plan on paying cash, and then follow up that statement with the question - "how much more will I save?"
The answer is simple. Nothing!
In fact, it is to the dealer's benefit if you finance or lease your vehicle; not if you pay cash.
A dealership may earn money on the financing associated with a motor vehicle. Moreover, they may receive a flat fee from a leasing company when you lease. But, if you pay cash there is no such additional profit.
In addition to the profit from the financing; dealers have an easier time selling additional products, e.g. warranties, accessories, etc. if they are providing financing since those products can be added to the loan instead of having the consumer pay with additional cash. Those products can also provide additional benefit.
So the next time you consider paying the dealership in cash - be courageous. Ask the dealer "what kind of deal can I get if I finance?" Remember, you can always pay off the loan.
what if i paid cash for my car as is ,and told the sales person i will be back in a couple of hrs to pick it up after they detail it,he gave me a copy of the contract saying the total of the car which was 12,531.25 than later called me saying i need to pick the car up in the morning after they put the factory rims on it,i told him that we did not discuss taking rims off the car,i told him that when i was at your lott with a freind who picked me up heard me tell you i will take it cash as is for 12500.00.but the sales person manager said after all paper work was signed but nothing signed by him nor me saying the rims or tires will be replaced with factory rims,i said 12500.00 as is but i never drove the car off his lott,and its still there i did asked the manager for my ck back he said he deposit it that day at NFCU,i called the NFCU the next day and the ck was not dep. i have not heard nothing from the dealer,i want the car as is or my 12531.25 back.i need your advise please, Thank You,Roselaind Faulks
09/12/2009