Buying a new car with cash

[CrossFyer]

one potential reason for all the deals available on financing right now is simply the low interest rates.

because of those, paying cash might be a good idea.
1. car companies don't have as much profit while financing their cars
2. financing the car and investing in a CD or money market has an incredibly small yield right now compared to ~5 years ago.

 

[EightySix Four]

one potential reason for all the deals available on financing right now is simply the low interest rates.

because of those, paying cash might be a good idea.
1. car companies don't have as much profit while financing their cars
2. financing the car and investing in a CD or money market has an incredibly small yield right now compared to ~5 years ago.

It may have a small yield, but the money remains liquid, unlike if it was tied up in a car. If the rates increase (which the prime rate is bound to do soon) than the money can be moved and the return can be increased. If he pays for the car upfront, all he is guaranteed is the depreciation losses

 

[Gibson486]

People keep on saying this, but they aren't making any money on the special financing deals that are out there right now. Take the incentives on the corvette for example, you get 0% for 60 months OR $3000 cash allowance. The Silverado has 0% for 72 months OR $5000 cash allowance.

BMW has 0.9% financing on some of its models, they're losing money on that deal so they may be willing to give you a better deal if you don't take the financing. Honda and Acura has 0.9% and 1.9% financing depending on the model and the length of the loan, they aren't really making any money off that loan either.

Saying that the automakers make tons of money off the financing is a few years behind the times, many are taking a loss on the financing so they can move cars off the lot.

dealers are making money off financing, not car companies. When a dealer makes a finance deal, whether it be from a bank or the car company, they get cutback from the originator. It's not a big amount, usually something like $200-$300...and it is usually not negotiable unless the dealer really needs to sell the car.

 

[jaedaliu]

say you intend to get a loan with a long repay period, try using that angle to reduce the price.

Then pay cash.

And don't pay with actual cash, that will just get the secret service or police involved. They'll take a check.

 

[PrinceofWands]

say you intend to get a loan with a long repay period, try using that angle to reduce the price.

Then pay cash.

And don't pay with actual cash, that will just get the secret service or police involved. They'll take a check.

Why would police get involved? I've been a cash only operator for years. Nobody cares in the least. They don't even blink while they count it out.

 

[AMCRambler]

The other thing you can do when paying cash is establish the price you want to pay up front and not negotiate. You walk in and you tell them you want this car and you have X amount in cash to buy it, right then and there. Including tax, title, fees etc. If they say yes they can sell it to you for that price you play along and make sure they don't try and slip any extra costs past you. If they say no, you say thanks you'll go talk to their competitor.

This is probably about the only way I'd deal with a car salesman. I hate haggling BS where it's all a game to get you in the office, sitting down filling out a mountain of paperwork and they give you the last sheet and it's $1500 more than you were told it would cost. Establish up front that you don't deal with that bull shit and that as soon as they try it you're walking out. Should make things a lot smoother.

Now if your price is unrealistic, they'll just laugh you out the door. So you better do your homework when you come up with that number. Find out what other people are getting them for.

 

[ponyo]

Why would police get involved? I've been a cash only operator for years. Nobody cares in the least. They don't even blink while they count it out.

They do care. New car dealers prefer you write a check rather than deal with cash. Cash is pain to count and store til deposit. Banks also charge businesses for depositing cash. Cash over $10k requires paperwork.

 

[PrinceofWands]

They do care. New car dealers prefer you write a check rather than deal with cash. Cash is pain to count and store til deposit. Banks also charge businesses for depositing cash. Cash over $10k requires paperwork.

Twice I've paid over 10k in cash for a vehicle. Neither time did anyone so much as raise an eyebrow. They might prefer another method, but they don't raise any objections to cash.

Even if they did object, there's nothing I can do about it. Since I don't use banks, their only option with me is to take cash or not make a sale. Guess which one they'll probably choose every time.

 

[rh71]

as far as a deal, they'd rather you finance but it's not a big margin anyway... most care whether it's a purchase vs. a lease though... they love leases.

 

[alkemyst]

discount for cash...bahahahah

dude, keep your bucks in your savings.

Stroke a check or finance it on their money (the latter is the smart move if you have the credit).

They actually hope you sign up for the mat/protection packages and dealer financing. Even better get you into a lease that's borderline predatory.

 

[alkemyst]

Twice I've paid over 10k in cash for a vehicle. Neither time did anyone so much as raise an eyebrow. They might prefer another method, but they don't raise any objections to cash.

Even if they did object, there's nothing I can do about it. Since I don't use banks, their only option with me is to take cash or not make a sale. Guess which one they'll probably choose every time.

Many places even when buying a home are not set up for someone bringing in five figures + in cash. Even the liability of it most would want to avoid.

When I worked in a bank it wasn't out of the ordinary for some seedy looking dudes to show up minutes before some person (usually hispanic older women) would want to cash out their entire savings.

We'd have them wait for a police officer to escort them off the parking lot. Our local police were happy to assist.

 

[PrinceofWands]

Many places even when buying a home are not set up for someone bringing in five figures + in cash. Even the liability of it most would want to avoid.

When I worked in a bank it wasn't out of the ordinary for some seedy looking dudes to show up minutes before some person (usually hispanic older women) would want to cash out their entire savings.

We'd have them wait for a police officer to escort them off the parking lot. Our local police were happy to assist.

I have no issues transporting the money for them if they want, though no one has ever asked. But if they did, and wanted me to meet them at a bank for the payout, I'd be fine with it. I just don't see a business refusing a $10,000+ sale because the person wants to pay in cash.

 

[alkemyst]

I bought this in the mid 90's
o Rotel RSP960 surround processor/preamp
o Rotel RB980 125watt x 2 main amp
o Rotel RB965 100x3 (40x6) center/surround amp
o Rotel RT940 AM/FM tuner
o Def Tech CLR1000 Center Speaker
o Def Tech BP20 Mains
o Def Tech BP10 Surrounds
o Marantz CC65SE limited edition CD carosel.
o Mondial Magic
o Isobar 8
o 35" Mitsubishi with some corian top (35405)...didn't like the picture though.
o Mitsubishi U560 VCR

the dealer wanted a cashier's check or plastic only. Would not take cash. I brought it because his price was beyond belief. I think right around 10k then. Dealer helped get my debit card processed for that much dough once I redeposited the money.

 

[PrinceofWands]

I bought this in the mid 90's
o Rotel RSP960 surround processor/preamp
o Rotel RB980 125watt x 2 main amp
o Rotel RB965 100x3 (40x6) center/surround amp
o Rotel RT940 AM/FM tuner
o Def Tech CLR1000 Center Speaker
o Def Tech BP20 Mains
o Def Tech BP10 Surrounds
o Marantz CC65SE limited edition CD carosel.
o Mondial Magic
o Isobar 8
o 35" Mitsubishi with some corian top (35405)...didn't like the picture though.
o Mitsubishi U560 VCR

the dealer wanted a cashier's check or plastic only. Would not take cash. I brought it because his price was beyond belief. I think right around 10k then. Dealer helped get my debit card processed for that much dough once I redeposited the money.

I can't even imagine. Why do we even print 'legal tender' on our money if no one is obligated to accept it?

United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes and dues. Foreign gold or silver coins are not legal tender for debts.
—31 U.S.C. § 5103

Yes, I realize that doesn't FORCE private entities to accept cash payments, but my point is, 'why not'? If you're not going to FORCE a medium of exchange, then you HAVE no medium of exchange.

 

[alkemyst]

government doesn't decide a private business. Liability does.

My purchase at this shop was lowball...the same day they had a guy picking up a $50k turntable. They are just in a strip mall type setup. Holding 100's of thousands in cash would be stupid.

 

[JulesMaximus]

Depends on the car and what kind of financing the dealer might have available. When I bought my Maxima they gave me 1.9% financing on it for 5 years so I didn't put a penny down on it, I financed the entire car. Worked out great for me!

 

[PrinceofWands]

government doesn't decide a private business. Liability does.

My purchase at this shop was lowball...the same day they had a guy picking up a $50k turntable. They are just in a strip mall type setup. Holding 100's of thousands in cash would be stupid.

Here's the issue: taken to extremes (continued refusal to assume liability for taking cash by private business) this creates a situation where a private citizen can be FORCED to participate in private enterprise, relinquish control over their assets, etc (or conversely all private business would fail if enough people refused). Both options are, of course, wholly unacceptable to me.

The only workable solution is to enforce 'legal tender' status. If you choose to engage in commerce in a nation, use the currency of that nation. It's not rocket science. Cash on hand liability is nothing more than the inherent liability of doing business. If it gets too dangerous, engage in social change to reduce the crime rate.

 

[Strk]

Unless you're financing through the dealership, you're pretty much always paying them in cash. They've been paid, it's the bank that gave them the money that hasn't.

 

[MixMasterTang]

Here's the issue: taken to extremes (continued refusal to assume liability for taking cash by private business) this creates a situation where a private citizen can be FORCED to participate in private enterprise, relinquish control over their assets, etc (or conversely all private business would fail if enough people refused). Both options are, of course, wholly unacceptable to me.

The only workable solution is to enforce 'legal tender' status. If you choose to engage in commerce in a nation, use the currency of that nation. It's not rocket science. Cash on hand liability is nothing more than the inherent liability of doing business. If it gets too dangerous, engage in social change to reduce the crime rate.

Dealing with the IRS crap is why a lot of places would not want to accept a large amount of cash.

http://www.irs.gov/businesses/small/article/0,,id=159755,00.html

The law requires that trades and businesses report cash payments of more than $10,000 to the federal government by filing IRS/FinCEN Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business (See Exhibit 1, Form 8300).

 

[alkemyst]

Also it is a crime in many places to have over X amount of cash in your possession.

I do agree about the legal tender and all, but unfortunately our money is no longer backed by anything...plastic is just as good.

 

[TwinsenTacquito]

Yes, using cash will save you money. They don't make more money off the loan. The company giving you the loan makes that money. Yes, it's often the finance company of the manufacturer of the car you're buying, but your salesman doesn't give a shit about that. His boss doesn't give a shit about it either. That money never makes its way to the salesman's commission nor the dealership.

 

[alkemyst]

Yes, using cash will save you money. They don't make more money off the loan. The company giving you the loan makes that money. Yes, it's often the finance company of the manufacturer of the car you're buying, but your salesman doesn't give a shit about that. His boss doesn't give a shit about it either. That money never makes its way to the salesman's commission nor the dealership.

LOL...this sarcasm?

 

[PrinceofWands]

Also it is a crime in many places to have over X amount of cash in your possession.

I do agree about the legal tender and all, but unfortunately our money is no longer backed by anything...plastic is just as good.

Can you link some sources on that? I know there's the mexican with $124,000 case (which was a MASSIVE abuse of the government btw), and I know there are rules about declaring bank transactions over a certain amount, but I've never read a law about cash hording.

This is somewhat important, since I haven't used banks in years and have a fairly large amount of cash in my possession at various safe locations. I'm free from declaration laws because other than getting checks cashed I don't ever use banks, so no large transactions ever take place. But if there are laws about holding cash I'm very possibly in violation.

Not that I'll change, of course, but I'll sure as hell campaign to change the laws if they exist.

 

[alkemyst]

That's different than travelling around with a ton of cash. In your home you are safe (possibly).

The Patriot Act further screwed this up...

http://www.fdic.gov/regulations/examinations/bsa/index.html

 

[PrinceofWands]

That's different than travelling around with a ton of cash. In your home you are safe (possibly).

The Patriot Act further screwed this up...

http://www.fdic.gov/regulations/examinations/bsa/index.html

Yes, but anything I buy I carry cash for. So for the new home entertainment system I had several thousand in my pocket when we went shopping. When I go on vacation I usually have a few thousand on me. Redoing my bedroom I had a bunch, etc. To say nothing of buying cars, where I have to have 10-15k on me.

For all of these things the money has never been in a bank, so there can be no transaction slips. It's the money I've accumulated through years of saving from all sources. This makes it difficult, if not impossible, to meet the requirements of much of what I'm reading here.