Buying a new car doesn’t have to break the bank, especially if you are able to pay cash for the cars you buy. And being able to pay cash for cars has plenty of benefits.
First, paying cash for cars means the buyer saves money in car payments, and sometimes in interest. What may be less well-known is that paying cash for cars also may mean the buyer will get a better deal as well.
But to get that better deal, the individual who wants to pay cash for cars needs to know the best strategies.
First, when buying a new car, the customer may need to avoid telling the salesperson that he is planning to pay in cash. That’s because the salesperson might get a bigger commission if he also arranges financing for that vehicle.
So, negotiate the best deal you can and focus on getting the price you want before there is any discussion of how the deal will be structured. This means the customer needs to push back when the salesmen presses on how the vehicle will be paid for — his job after all, is to find out as much information as he can about you and your prospective purchase.
Then, once you reach an agreed upon price, let the salesman try to offer you a better deal if you finance through him. That positions the buyer to suggest he or she wants the same deal for the cash price.
One of the best ways to be sure of getting that deal is to come into a dealership at the end of the month when the salesman and the business may be trying to make a certain sales quota. And offer the cash price you want, for that day only. It turns around the car sales strategy to favor the buyer instead of the dealer — and it still helps them by moving inventory.
But paying cash for cars also means the buyer has more flexibility too. Gently used cars from individuals can be a great way to find good deals and those sellers almost always want to deal in cash because it’s just plain easier. If you have cash-on-hand, you may be able to strike a better bargain.
Finally, for an out-of-the-box solution that may also net you a great deal: finance your car through the dealership in exchange for a much better price, but only if there is no penalty for paying it off early. Get a better price and deal. Then immediately pay it all off.
Bio: Sean knows how to save money on a car, because he works for a used car dealership. The car dealership he works for sells cars, and also offers money for cars.