r/askcarsales • u/No_Percentage_5649 • 7h ago

How much can you haggle if paying in all cash

I’m not sure if paying for a used car in all cash would at all lower the price on a car but, I’m looking at a civic for 23,960 and was wondering if I’m paying in all cash could lower the price for me. Maybe even start off with an aggressive 22k. Thanks!

0 Upvotes

31% Upvoted

31 comments sorted by

42

u/gganew Ford General Sales Manager 7h ago

Paying cash doesn't change the market or the dealers cost.

The dealer is either getting cash from you, or from the lender.

21

u/df540148 7h ago

My brief experience was the dealer turned down an all cash offer and would only accept it if financing. This seemed to be pretty common these days.

13

u/gganew Ford General Sales Manager 7h ago

Its only common if you sort by lowest price and go to the dealers that play games. Which most people do. But in reality, 99% of the dealers don't care if you pay cash or finance.

1

u/kenphx1 6h ago

Same experience here so I let the dealer finance and then paid off in 3 payments.

-6

u/No_Percentage_5649 7h ago

On the post I see it just says financing available. So I don’t think that would be the case. That’s why then I’m wondering if it’s a low ball

7

u/Otto_Polymath 7h ago

Dealer will make some money on the loan. So by paying cash, they feel you are taking money out of their pocket.

3

u/GlassCannon81 6h ago

You are taking money out of their pocket. If it’s a high volume model that they can easily move, selling it for cash just means making less money on it. There’s no upside.

2

u/blipsman 6h ago

Dealers typically get commission on loans they refer to a bank, so they prefer a buyer finance than pay cash. They get paid in full regardless, whether it’s your cash or bank’s cash.

4

u/ObviousAlias7 7h ago

Just play the game and haggle with the premise of getting their financing.

Once you get home and get the account info, just pay it off.

Or, if you like the dealer and feel they helped you out, pay 99% of the loan on the first payment and then make 2-3 more payments of a handful of bucks. You'll pay very little interest and they will get their backend money due to keeping the loan active for 3+ mos.

1

u/JJHall_ID 6h ago

Dealers make more money when you finance the car than if you pay cash since they get a commission from the bank. "Cash is king" isn't really the case anymore. You'll probably get a better deal overall if you take dealer financing then pay the loan off.

-3

u/No_Percentage_5649 7h ago

Okay I see, then regardless is that a crazy low ball or is it a good starting point.

11

u/gganew Ford General Sales Manager 7h ago

Dealers advertise to market, and don't have a lot of mark up. Can you find one for less money somewhere else? If not, then there probably isn't going to be much, if any, negotiation. If you can find one for less somewhere else, go look at that one or use it as leverage on this one.

The Internet has made car sales a really small world.

3

u/RandyJackson BMW 7h ago

Sometimes there is a lot of mark up. But if the market says that’s the price then that’s the price. What we make on a pre owned should have no bearing on that as you know

-1

u/No_Percentage_5649 7h ago

Okay thank you.

5

u/Ibroketherandom 6h ago

What is the last year you bought a car? Genuinely. 

1

u/JJHall_ID 6h ago

You'll just have to look at prices of similar vehicles being sold in your area. If most are going for $22K, you probably have a better shot of getting that accepted. If most are going for closer to $24K, then maybe not. You can also look at KBB to see what their estimated trade in and private party values are. While not always 100% accurate, that will give you a ballpark of what the dealership likely paid for it (the trade-in value) and are probably selling it closer to the "private party" value. It's hard to know for sure what the dealership actually paid for it though because they could have offered a higher price on the trade in order to sweeten the deal for a buyer. Or they may have paid less for the trade because of a lower offer on the sale price of the new car.

Ultimately what they paid for it really doesn't matter all that much. It all comes down to what the market is supporting for a price.

12

u/PabloIceCreamBar Former Lexus/Chevy Sales 7h ago

Zero

5

u/New_Inflation_8419 Ford Sales 6h ago

Is your 22k based on the market ? Like are there cars for 22k out there with same equipment ? It’s one thing to negotiate with facts and research and another to pull a number out of your ass.

3

u/jpb59 Former SM/Director 6h ago

Cash used to be an advantage back in the day because banks would take weeks to fund dealers so it was beneficial to discount to have cash in hand.

For the last 20 years, that hasn’t been a thing since dealers are funded electronically. There’s banks where we’re paid within hours of contracts being signed. Not only that, we’re being paid by the banks for acquiring these contacts for them now.

So, cash isn’t going to matter anymore when negotiating. It’s no longer a benefit to the dealer to accept cash vs financing. It’s the opposite to some places anymore.

2

u/DavefromCA Former Sales 6h ago

"paying in all cash could lower the price for me"

Paying cash giving you leverage is one of the most common misconceptions in auto buying. Why do you think paying cash gives you leverage?

2

u/AutoDealSource Industry Expert 5h ago

Cash no longer has the clout it once did. Too many ways to make profit sans cash. What a time

3

u/TheMrDetty Toyota Sales 6h ago

Why would I, the dealer, take money off of a car that I can sell at full price to make less money because you're paying cash? Let me make this clear: Dealers want you to finance because they make more money that way.

Going in with the idea that "I'm paying cash, the dealer will like this, and give me a better deal," is insane in this day and age. The dealer makes a kickback from the bank when you finance it. That means they make more money that way. There is zero incentive for the dealership to lose the finance kickback and take money off the price because you're paying with a check.

1

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u/AutoModerator 7h ago

Thanks for posting, /u/No_Percentage_5649! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.

I’m not sure if paying for a used car in all cash would at all lower the price on a car but, I’m looking at a civic for 23,960 and was wondering if I’m paying in all cash could lower the price for me. Maybe even start off with an aggressive 22k. Thanks!

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