All of this information has convinced me that the burden of buying a new car is TOTALLY on the shoulders of the " customer " and has nearly turned me off from buying a car PERIOD! It literally gives me the impression that the customer should arrive prepared to do major battle and everyone inside that dealership is an enemy . I hate being made to feel like I'm doing a business a favor and that I should feel blessed that they are allowing me to buy something from them! At this point, I think I'll find some alternative and spend my hard earned money with a private party.
It's too bad you feel that way, but I understand. I've paid cash for my last two cars and I find, simply put, that if you do all of the necessary research as far as model and out the door price you're willing to pay, and be prepared to simply say "no thanks" and walk out the door. No reason for any conversation about a new or used car should ever get above normal talking volume. Here's my offer, if you counter, fine. Thanks for your time.
If you tell them that you are a cash payer, do not expect to get a discount. The dealership makes money off your interest rate too so tell them that you are financing it and you will get the pricing down. After about a month, call up the lending bank and pay it off. This will make the dealership mad cuz you pulled one up on them. Take it from a former high volume dealership sales guy.
You don’t think the dealers are wise to that? Lol. As soon as you say you’re not sure how you will pay they will assume the worst case scenario for THEM and be difficult in the negotiation. And at the end, if you pay cash, they protected their profits……if you finance, they made MORE. Either way they have the upper hand.
Please read your contract carefully because a lot of them have a prepayment penalty for trying to pay it of its a law allowed in most states to protect the loss of the lenders so do your research and inform yourself cause sometimes paying early costs more than the financing, yeah I know it’s ridiculous
I went into a dealership one time planning to pay cash. To make a long story short they were very open about being able to offer a better deal if I financed it for 36 months and didn't pay it off for at least 90 days. The discount was $1,500 and I was only going to pay a few hundred in finance charges in 90 days. The dealership told me that the finance company gave them money for selling the loans and if I paid it off before 90 days they wouldn't get their money. Well I agreed to the deal. I thought I explained all this to my wife, but when the first payment came in the mail she just paid it off. The salesman called and wasn't happy, but all I could say was sorry, it was a mistake.
If the check is too high, then rip it up and write another. If the check is too low, then tell them you are not going to rewrite the check, take it or leave it. The customer could care less if the Finance Mgr 'shoots' his co-workers. I bought a car one time with a check, no financing, and the Finance Manager was trying unsuccessfully to sell me extra stuff, and he started whining and crying that they were not making any money on the deal. I stood up and said "if your that unhappy rip the check and the paper work up and I will just leave." The Finance manager shut up and completed the deal. The only reason the dealers do all this crap is because almost everyone, men and women, are all pussified.
Agreed... I don't know why these people think anyone cares how car dealerships feel. They certainly don't care how the customers feel and will do anything to pressure someone into a purchase.
I’ve had finance managers furious with me because I made a deal for the purchase of a car and absolutely nothing else. None of their garbage warranties, paint coatings ect. and financed through my credit union. It’s pretty entertaining to watch these clowns lose their minds.
@@frankvadnais3536 Well since I was not there, I can only make a guess, which is ... the Finance Mgr was probably not really upset, he was just ACTING upset. Most of them are professional salesmen, they work with hundreds of people a year closing car deals. Do you really think they would become unduly emotionally involved in your particular transaction? Highly unlikely.
Basically, you have to lie to dealerships about how you plan to pay for a vehicle if you are going to pay cash. I have been going through this for the last few weeks. They love to jump right into what your payments will be on a vehicle. I use the words "I have my own financing lined out" and most do not call or text back. By taking the money out of the bank and paying ourselves back, we are saving about 15k in interest on the vehicle over 5 years so it is well worth doing, it is just finding someone who will work on a cash deal seems almost impossible. It is a terrible business model when you have to go in lying to prepare for their lies, omissions, hidden fees and markups.
Your dad reminded me of the time when my significant other and I went to a new location for our dealership of choice. It was a early Friday night and the General Manager who we normally dealt with was busy so we just started looking around to see what was available. We where there for about a half hour and NO ONE said a word to us, they were to busy talking with one another (no other customers were there). The GM came out, saw us and we told him that we thought we were invisible. Now normally when we bought something he would give the deal to salesperson to handle for him; however, this time he was so upset that he kept the deal for himself. We bought 2 new cars that night and he had fun telling the next morning sales meeting what they had missed. I find your channel very informative.
Same thing happened to me and my husband last week at a used car dealer ship in NYC. We were rudely told to sit down and completely forgotten about as employees chit chatted. After an hour of watching ppl avoid us, we walked out. They had a great deal, and we were ready and I was desperate lol. We wouldn’t of even haggled too much. As much as I wanted that deal just out of principal we refused to give them our business.
I was selling Mitsubishis back in the mid 90's. We had a 3000 GT VR4 in the showroom that listed for around $50k. A farmer in an old beat up truck showed up and walked in the showroom. None of the "more experienced" sales people paid him a second glance, as he was quite disheveled. He started looking at the VR4 and I approached him. He asked me, "This thing fast?" I replied "Yes sir!" He then asked how much it was. When I told him the cost he, didn't say a word, turned around and walked out of the dealership. I thought he was leaving and went back to my desk. He then walked back in with two armfuls of mason jars filled with cash...walked up to me and said, "Should be about fifty thousand in here. Let's talk." He bought the car, drove it home that night....leaving his beat up pick up truck in the lot to be picked up in the morning. The other sales people couldn't believe it, nor could I!
@@steelydan449 I made a fat commission. I don't care if the story has been told before or not. It was the one really great sale I had in my one year of selling cars.
This video is the ultimate proof that cash buyers do not get to skip meeting with the finance officer. Everybody has to listen to the sales pitch for the extended warranty no matter what.
Gwin you can blame the lawyers for this. Too many dealerships have been sued because a customer has claimed that they would have purchased a protection plan from the dealership had it been offered to them in F&I. So now everyone hears the pitch and signs off that they were offered the various items and that they declined them. All the best, Ray
I was able to do this once. It was at an out-of-state dealership. They had a used car that was the same make, model and color of my car that was totaled. The price was a few hundred bucks more than my settlement. I agreed to the price, drove to a branch of my bank to get a cashier's check for the amount, and bought the car. They gave me a temp tag and off I went. Never saw the finance guy. (I had been looking for many months and everything I saw were several thousands more. Plus I wanted the same gold color, not black, white or silver.)
I purchased a car, paid cash by doing an electronic transfer from my bank account to theirs. The mistake I made was to tell the salesperson that I was paying cash upfront. After watching your channel I know that the saved very little.
As someone who has handled large sums of money everyday . You count everything into 500 or 1000 dollar increments. And after everything's counted like this. Then you add to the total
From my experience, I think you might have left out the most important point. Which is never tell them you are paying cash until the otd deal has been made! Cash is not king with a dealership
Nailed it! I was going to say the same thing. This is contrary to the way most people think. When I was working at a Honda Dealer one of my colleagues would actually tell his customers take what ever financing there is then when the first payment comes, pay it all off.
What if they ask if paying cash within the first 5 minutes of negotiations? First ?: Do you have a trade? 2nd ?: Are you financing or paying cash, 3rd ?: What down payment? I guess you have to baffle them with BS to avoid answering them. Sort of like Democrat nominees for cabinet positions "I am sorry Republican Senator, I don't know how to answer that at this time!"
@@veger5872 you can start off by asking, what monthly payment plans do you guys offer? You’re not telling them lie. You’re just not telling them you’re paying cash.
Ray is exactly right. One of my best deals was an 18 year old who came and looked at a nearly new Toyota Tacoma. He drove up in a beat up jeep cherokee missing a window and covered in mud. I went over and talked to him. He called his grandfather and I went with them to lunch and bought their lunch. They came back and bought the Tacoma and a New Dodge Challenger R/T Cash.
So I have a question let's say I buy a $40,000 vehicle in cash. Will the IRS come hunting me down? I prefer not to go through the bank every month and would like to just pay once.
@@Jr._.2soild just write a personal check, or actually if you're paying that much maybe do a cashier's check. I don't think the IRS will hunt you down as long as you've always filed your taxes accordingly lmao
This video was right on time! Through an inheritance, I'm able to pay for a vehicle in cash. I had no clue how to go about it. I also learned from you guys NOT to tell the dealer it'll be a cash/check deal. I've learned (SO) much off ur site!
Perfect timing!! Was wondering what the proper procedure was for paying cash in dealership ,came across this video that was made 9 months ago . Very good video once again!!!! Answered my questions! thanks once more Ray, Zack, and Kimberly you guys are truly awesome!!!!
I would love to see the finance manager run out on the sales floor looking for who to berate. I'd literally start a slow clap. Also this is why, as a cash buyer, you come in with the expectation of writing 2 checks. Let's say the OTD price is 40,196.98 from the sales crook, have a check written for $39,000 then expect to write another check for the difference and hand it to the Finance Racketeer. You'll remember the look on the Finance pilferer's face, it's a beautiful thing. Cheers!
Outwest the Mennonite farmers are famous for buying expensive farm implements (a modern tractor combine can easily be $250,000 or more)and showing up in a group with boxes filled with cash!
I recently purchased a vehicle and never told them I was paying Cash. I negotiated over the phone until I got the price that was fair for both parties. Once I got to the financial manager, I noticed the interest rate was much higher than I know I qualified. I wanted to pay the full vehicle, so interest rate was of no concern. I did not like they were offering a higher interest rate until I brought it to their attention. It was immediately lowered to the lowest available. The Vehicle was delivered to my home, paperwork signed at my home. I paid their max amount on Credit Card (wanted travel miles). The remainder on a personal Check.
My friend Deb went to the local Chevy dealer to purchase a new 2010 ZR1 Corvette that was on the sales floor. The sticker was around $110,000. She had a C3 Vette to trade in that she had purchased used at that dealer a few years before. Her boyfriend had recently died (a prominent local DJ) and left her a huge insurance settlement, an expensive SUV and a paid for condo. The male salespeople simply blew her off. She drove to a dealer 50 miles away and ordered the same ZR1, The salesperson at dealer #2 took her seriously and had the car shipped to him from the original dealer she had tried to buy the car from. A month or so later Deb purchased another new Corvette C6 convertible Grand Sport from dealer #2 and is now driving either a new C7 or C8 she bought from dealer #2. I have lost touch with Deb as I moved far out West to Arizona. Let that be a lesson to you sales folks!
In 1986 I worked as a car jockey for a car detailer. I would go to various dealers to pick up used cars that needed to be cleaned up for resale. On this day I was at McGuire Chevrolet in Bordentown, N.J.for that reason. I had time before the vehicle was ready for me so I found my way to the new car showroom. As I’m checking out a yellow Camaro Z/28 two customers wearing business suits and Keffiyehs walked in. One of them spotted a salesman, pointed to two Chevrolet Classics and opening two steel briefcases filled with cash said “Is this enough for those two?” I walked out of the showroom so I wouldn’t be seen laughing at two guys about to be fleeced but also not to be seen crying because there was no way I was getting a deal on the yellow Camaro. On a side note that was the day I met Barry Meguiar who was a close relative of the dealership owner.
When I bought my 19 Cruze, the salesman asked me pretty quickly how I was going to pay, when I said a check (which I will never do again) his enthusiasm and personality changed instantly. I was charged MSRP, but I wanted the car.
I paid cash for a car once. It was a state away, and I confirmed the full amount with the dealer over email. They said they only wanted a cashier's check, so I got one for the out the door (didn't know that exact term for it at the time) price. I was driven there by some family, tested the car, signed some paperwork, handed them the check, and drove it home. Interesting that you say most dealers not only will accept personal checks but are wary of cashier's checks, as this place would only take a cashier's. Heh oh well, it worked out great.
Sadly, my grandparents (Danish emigrants in the early 1900's), bought a new car with cash, only to have it destroyed in a barn fire a year later with no insurance. This happened in the Great Depression, something my dad never recovered from.
As some others have said, the most important point would be to get the OTD price before mentioning how you're paying. Was this intentionally excluded? With as much dealership experience Kimberly and Ray have, I'm surprised a point as important as this was not included in a video about paying cash for a vehicle. Kevin Hunter 'The homework guy' has a couple of really good videos about paying cash for a vehicle. I believe you did a reaction video to one of his videos previously. Overall, I do enjoy your videos, even if they sometimes come off as having a bias towards dealerships. Keep up the good work!
Thanks Jason. We simply wanted to highlight the "how" to pay cash and things like what to do, what not to do and the questions you might want to ask the dealership before hand. I do hope it was helpful to some people as it does come from our years of experience. We do however, have videos and tons of information on our website and Community on when to discuss just how you'll be paying for your new vehicle.
Jason, 100% with you on this. LOVE this show, just good people who want to help. But yes, they have been so close to the dealerships they are forgetting that the dealership is the "feeding pit" for the sales people. We are but pray for them to feast on. Best option, NEVER EVER step foot in the dealership. I'll rent or test-drive a car at a dealer I'm not going to buy from (exception to my rule) before I buy, so I don't even deal with that nonsense. I do everything over the phone or internet (even better yet, I call with my google voice number so the lions can't get ahold of my #).... but, all dealer tracking systems (such as Dealerspike) now put you in their system even if you *67 your caller ID.... so scummy. We are simply buying a can of Green Beans from Safeway. There is NO difference between the greenbeans at Joe's New Care Lot or Sue's New Car Lot. They are all just a commodity. I think I'm going to start my own channel! Your Advocate Alliance.... is the"Your" the dealership or the customer... It makes me wonder. But again, good people but something is just a little off. If they tweet their message just a little, I'll keep being a fan. Waiting for them to invite me in to debate some of this stuff. Wonder if They can handle a boy from central Jersey or not?!
I was the fiance manager at a dealership, a guy shows up he is going to write a check for the car. He says I have $12, 000 I want to give you but I don't want to fill out the IRS form. I explained it is not a choice, if we take $10,000 or more the IRS form will have be filled out. He states if I am not willing to do it his way he is walking out. Told him I am sorry but I have no other choice. He walks. A week later report hits the news how 3 other dealerships in the area have been raided by the IRS, it was a sting operation by the IRS. This was in the late 80s.
When I was a P&C insurance agent, we had a client that was an older gentlemen and he wanted to pay everything in cash. He carried around 4k on his person. I advised him that was not the wisest thing to do. We dicussed finance etc. He is a wonderful guy but being in his early 80's (you would never know it!) he was not aware of the risks etc. He is still a client of my former co-agent! Use your finances wisely! My last comment :) NEVER judge people on the way the look! People who have money do not flaunt it. I know. :)
Exactly! Many relatives, my best friend, & several other very wealthy people that I know look like they are homeless. Holes in their shoes, need a haircut, drive 32 year old cars with dents, & do not own a cell phone. That is how they became wealthy, by being thrifty!
In 1975, upon graduating with an engineering degree and landing a good-paying career job, I went car shopping at a local Ford dealer. I was wearing jeans and a t-shirt, and honestly, looked like a teenager. None of the salesmen approached me as I looked at the models on display in the showroom. I had to ask for assistance, and still they all ignored me, even though I was the only customer. I would have purchased one of the cars on the floor that day. I went next door to the Chevy dealer and bought a car from them, as they greeted me as soon as I walked in. Don't judge a book by its cover.
@bobcat baldfat drunkbeater Fords of that era were no better. The pollution requirements stole all the power from the engines and Japanese cars of that era were very small, and didn’t meet my needs.
I used to work in a high end technology store (computers etc). Our sales team always told us to make sure to approach people in sweatpants, white tees etc as not everyone wears their bank account.
As a young man I met a salesman at a Chevy dealer who would not get up from his chair. I then went to a Pontiac dealer where the salseman grabbed the keys to multiple cars, allowed me to test drive, etc. I came back with my Dad and we bought a new car. In the 8 years that followed, between my friends and I, that same Pontiac salseman netted 5 or 6 more sales.
My pop, Great uncle & their buddies were self-made men. always dressed in work clothes. Mainly overalls, work boots, denim shirt, and a hat. But could buy anything they wanted with cash . But my pop ( grandfather) was smart about it. If he wanted a piece of equipment for the excavation business or for the farm. He'd have the money in the bank just write a check out.
Love your clammer story. I was a retail banker and at a car show at the Memorial Colosseum in Fort Wayne, Indiana in the 80's. There were wealthy businessmen who sometimes dressed like their gardeners. I knew one from contact through a friendship with a rich friend. I saw this guy, whose estate had an African veldt, own security and lots of hidden perks. (A long time friend's father was the guy's horse stable manager, so the estate was our playground.) there, looking like a gardener. I watched every sales person blow off helping this guy until one I respected was being diligent. I sauntered over to him, gave him the back story, then as he was commencing a deal with the guy, announced it to the whole of the sales people. It was fun to watch them scramble to find some crumbs.
Back to new cars, in the 80's their was a simple formula on new cars: Sticker -discount -trade in = out the door price. Everything was a manipulation of this formula. Now, is this still the case? And I remember that manufacture and dealer incentives on particular models influenced the discount portion. Trade in was determined by the Actual Cash Value of the vehicle traded in.
I once had to have 2k in cash because I couldn't use a personal check and wasn't close enough to a branch of my bank to get a cashiers check and I was scared sh*tless that whole time and I was in a good neighborhood. Not only is it not safe but it is INCREDIBLY suspicious if you are walking around with enough cash (I'm assuming 20k and up) to buy a car.
Although it is perfectly legal to carry any amount of cash, if you get stopped by police, they may sieze that cash without charging you of any crime. It's called CIVIL ASSET FORFEITURE, and is one of the most evil things allowed in the USA.
I never had a dealer accept a personal check for a car. So, is the only option to drive to the nearest bank form a cashier's check? Or can you do put your money in the bank account and authorize an ACH bank transfer?
Can you address when to say you are paying cash? After the deal is made? I’ve heard to negotiate the deal first and have it in writing since the dealer makes money on the financing.
You left out a very critical piece paying with cash. At my work we get counterfeit money and it got so bad we had to purchase a high end counting machine ($5k) that can identify very well done counterfeit money. The paper is hard to replicate but we have received washed bills where they will take a $5 and make it a $50. Always hold the bill up to the light and match up the President. If you see a Lincoln water mark on a $50 it has been washed. The counting machine if high end will catch a washed bill.
Shawn I always told my salespeople not to wear expensive clothing or jewelry, I didn't want the customer to think to themselves that I don't want pay too much so they can wear $1000 suits. All the best, Ray
I stopped by the Nissan dealership a couple weeks ago dressed in my work out clothes (before working out off course) they didn’t give me the time of the day. Just know I took my business to another dealership
I used to be a teller at a bank. i would count that 35k in cash and bundle them for u in under 20 mins :P Also i advise dealerships to have a cash counter machine on hand xD
I'm very surprised at dealerships preferring a personal check to a cashier's check. Last vehicle I bought at a dealership for cash was a new motorcycle 20 years ago and they absolutely wanted a cashier's check.
When I purchased my 2009 CRV brand new, I sat down and told the finance manager I did not want to purchase anything extra for the CRV. I did not need to hear his sell pitch. He was PISSED, but he honored my request. My wife and I still laugh about that to this day. I still have that CRV. LOL
I was in the aircraft business and we had just started our company in a leased hanger and had our first inventoried plane in the hanger . I was working on the weekend and this guy comes in he was in his 70s and had Oshkosh overalls on and said to me I would like to buy me one of these airplanes . I was like sure :-) we discussed the plane and went over the details about it and the pricing and he said thanks and left . A week later he comes back with this lady in her 30s and introduces to her and says she is the finance officer of his company she gives me her card and it has her name and her title which was “Trail Boss “ we discussed the aircraft again went over the numbers she asked if there any other associated costs I said no , he said we will take it . He wrote a personal check for 1.3 million. A month later we delivered the aircraft. As you guys eluded to you never know who is going to walk in and purchase something from you so treat everyone like they are a buyer no matter what you think . He was a customer of ours until he passed away and had purchased two more planes from us in that time . Never judge a book by its cover .
i negotiated my trade and discounts to get an OTD price then i paid them with a cashiers check. i made it firm what im paying and not anymore than what was agreed on. we both got a good deal.
Loved this episode! I never thought of putting part of the purchase on a credit card -- but with all the fantastic cash back and points deals out there, this could be a nice perk. I wonder what the max limits are these days? Also, does the dealership call the bank after you write the check to confirm the funds are available? Some of us still save for cars -- inflation killed us this year -- but we're out there. So many great comments here -- you may want to do a sequel.
Keep in mind that dealerships sometimes have to pay service fees if the car buyer uses a credit card. Thus the dealer may refuse to let you use a credit card to buy a car or set a limit like say put 5K on your card but pay the rest using a check. As for your second question, dealerships have a special machine that can validate personal checks to make sure they're genuine and yes if need be, the dealership will call the bank.
If you put $5000 on the credit card that would be 1% rebate or $50, at 2% it is $100. Probably you could tell the dealer to knock off that chump change and not use a credit card. A dealer will not let you pay any more than that on your credit card, and probably not that much.
I'm glad I decided to watch this video. I'm getting ready to go buy a used car with cash. And I would have done it completely backwards and all wrong. I thought having cash would be powerful. Now I know don't even talk money really with the salesman.
Nope. I don't wait to see if there are any "extras". There aren't any. I don't tell them it is a cash sale until I am in the finance room AFTER the P&S is signed. Once I have my price, I make the finance guy very sad and present a bank check for the EXACT amount of the P&S, period. They hate this, but I love it.
Excellent point. I want to buy a new Honda with my personal check. It's convenient and I'll just say "undecided" until I get a OTD price. Then walk into the finance office and write my check for the agreed price.
I am in the process of shopping for a new car and I've been watching a lot of the videos on this channel, and I agree with some of the comments. I absolutely hate buying a car because of predatory sales tactics, and I have a number of bad experiences... Honda is the worst. I am dreading this. And no one should be made to feel this way about the second most expensive thing you own. It's not this hard to buy a lawn mower. You don't spend 6 hours at a store being worn down by layers of salespeople in a coordinated effort to get you to pay 3 times as much for one and several useless maintenance plans you'll never use. It's ridiculous. Ugh.
So let me get this straight - once I have the OTD and I'm headed to the Finance office, when and how do I mention I am paying cash? Do I just come out and say it or do I ask the finance numbers and what the interest would be and then tell them that over the years it will cost me more than I want to spend so I'll buy it in cash?
I scrolled down further and seen that a person said they don't mention that they're paying cash until a P&S (Purchase and Sale Agreement) is signed in the finance office. Then they present their check for the exact P&S price to the finance manager
There was one Lady who walked into a Porsche dealer dressed poorly. The salespeople ignored her. She was eying the most expensive one. She then DEMANDED service. Finally one of them walked up to her. "How much for this one??" (ALOT) To the shock of the salespeople, she started pulling hundred dollar bills out of her boots, and other clothes. She drove it home. That Woman was Grace Slick!! She could have bought every car in the place five times over. 😱
Right after WW2 my uncle was working a dealership in Reno, an older fellow entered the showroom floor and asked the price on a particular expensive vehicle. The answer he received was “more than you can afford grandpa “, about two weeks later the gentleman returned, walked up to my uncle and says “If you want too continue employment grab a broom and start sweeping if not leave the premises, a lesson in humility is on the plate for you “. Uncle found the broom and stayed 25 years.
It’s clear that you all have a great deal of experience in the car buying process and want to share you’re knowledge with consumers. Would it be possible to forgo the lengthy stories of fishermen and little old couples with bags of cash and focus clearly on the best way to conduct a cash purchase. I had to fast forward through these extended stories to get to the information I was looking for. Save the stories for a dealership retirement party. Thanks
We have always paid cash for the cars we've bought. The last new car we bought we took a test drive and then wrote down the dealer's inventory number. We then went to the fleet sales manager office and asked what the fleet price was for that car. He gave us his fleet price, we wrote a check for that amount, and we had a new car. We went back to the salesman that had given us a test drive and gave him $100. Dealing with the fleet manager is the only way to go.
I take my dog with me, and he pees on the tire of a car in the showroom. If they complain then I also pee on a tire. At that point the tone of the negotiation has been set.
My Cousin did the same thing back in the 50's. He walked into a local car dealership with his greasy overalls on and asked about a brand new buick. Noone seemed to want to help him, and finally the manager dealt with him, saying the new Buick was 2500 I think. My cousin just whooped out a roll of hundreds and payed cash for it right there. What they didn't know is that he lived near me off grid. No electricity, no running water and worked for the school as a bus driver. Every quarter, the Superintendant would have to call him in the office and threaten him to cash his paychecks, so they could balance the books. Before he died, he dug up the money he had hidden around his house and my other cousin, he moved in with and left the money to, told me he had about 250k, left in the mid 90's.
Here in Spain, and in whole Europe, you can't pay in cash more than 1000 € (around 1050 $). Credit and debit cards has also daily limits and ammount limits. Bank checks have fees. It's better to pay by electronic bank transfer.
Interesting comment on credit cards. I once tried to buy a car on an Amex. Instead, they accepted a 10% down payment on the card. The dealer told me something about different consumer protection laws with credit card purchases, which made sense to me at the time.
Ray, again from the 80's, I remember a couple buying a car, and when the price was agreed, he looked at her and said "get out the sock"! she pulled out a sock of very smelly bills totally worth $27000, to pay for the vehicle. We took the money and immediately ran it to the bank' the smell was killing us. LOL
Better to tell the sales person you are open to/intend to finance so they can factor the back end in and then pivot during closing and say you are purchasing outright. You may get a slightly better deal
@@timothyfoutz6147 well there are conceivable genuine reasons someone could pivot. For example I went intending to use 0% and a rebate I qualify for only to discover accepting a certain program may disqualify. Or you don’t accept the terms & conditions of the lender agreement, are unwilling to do business with lender, etc
@@joshgoldstein1568 Correct rebates and 0% virtually never stack. Typically you get the best deal by financing at least 10K with for example GMF or NMFC etc. Then pay the car off on the 2nd to 8th payment, depending on the terms. But lying to us is a bad plan. Especially at a luxury vehicle store. Especially right now it is a bad idea. The odds are you will be sent packing.
@@timothyfoutz6147 thanks for engaging on this but I don’t think it’s lying. As a consumer Im open to financing, especially at 0% or near 0%. All of this aside I only lease my cars and the biggest challenge for me has been getting an F&I manager to do refundable Multiple Security Deposits to buy money factor down below buy rate Tier 1+. Had Audi and Toyota managers go to great lengths to talk me out of doing it, saying it’s not a good deal, we only get a few of these a year, etc
@Tall RVr You have no idea what you are talking about. So I guess in whatever business you are in you get to pay 500 dollars a month to keep an 85K item in inventory for up to oh maybe 2 years. Then sell it for a loss as the markup was 1800 dollars. Maybe the holdback is another 1200. I sold a van once that we had had for 2 years 6 months for a dead loss of 10K plus floorplan costs etc. That is ok there will be no more dealers soon enough as things are going. We are supposed to have 300 cars. We have 4. Two are leaving on Sat. so then we will have two. We have three sold units coming in this week.
I negotiated the price of a car and then told them that I was paying cash. They told me that the negotiated price was only if I financed the car. Two hours and a lot of screaming later I got the car.
@@joyphoummavong3165 the dealer is the one that files the 8300 form because they're the one that is receiving the money, only the ones receiving the money that was for business has to file a 8300 form
Honesty is the best policy. If you don’t want the dealer to lie to you then you should not lie to them. Do your research before you show up to the dealership and if they can’t match the price you are willing to pay, you leave.
Small used car dealers will only accept bank checks. No personal checks, no cash, no money orders, no credit cards. I just tried yesterday with cash and the owner said, "No." I said, "Then, you drive me to my bank, pay for the bank check and drive me back." No deal came out of that encounter. It was only a $9,000 deal which cash is not reported to the IRS until $10,000 like you said.
It seems that the amount that can be paid by credit card is just as negotiable as the various fees that the dealership wants to add on. You can offer to pay the full OTD price by credit card, and be willing to just walk out if they won't accept that.
I'm confused as to how this video answers the question posed in the title, other than, "don't actually bring a pile of cash with you". Cash in most cases these days means "Not Financing/Paying via Certified Cheque/Bank Draft". Do you guys have a video for that? I'm about to buy!!!
I showed up with a trade in. Started negotiating. They let me leave the dealership. The next day I sold my trade in and called them back and told them I have a check for this amount out the door. I showed up with the check and told them to tell me to take my money and leave. I got my first pickup truck that day. Ended up getting a check in the mail for $40. Did notice finance persons eyes get big when I said I want to buy all of my cars like this.
That's what I'm thinking of doing. I know they'll rip me off on trade and it's an easy sell, plus I just sold a peice of land and want to pay cash. I've waited 5 years for this and trying to learn how the dealers look at cash buyers.
I bought a new camry 2021. I came to a dealer and asked for OTD and compared to price the dealer advertised on internet. I had a snapshot of the ad price. Then the sale manager asked me how do i want to pay. I told the sale manager, I have to go the bank to get Cashier's check. I asked the sale manger for statement for a final OTD price and he accepted my inquiry. The sale manage said the dealer added paint protection on it and wanted to charge me xtra 400 dollars. I dicovered the car was just delivered from manufacturer 1 hour prior i arrived the dealer. Actually, the car wheels and fenders were covered with plastic. It indicated that words from sale manager lied about color paint protection!
Please talk about how to structure the deal if you plan to pay case, when to spring that after deal is hammered out. I'm going to buy last truck of my life, next year when things are caught up, full size Super Duty Ford, F- 350 , Thanks
Since you are buying a brand new car you should prob join their website and gain access to their email templates they are really good, especially if you are buying new because the local dealerships have more than 1 of the truck that you want in stock. You just copy and paste and insert the type of truck you want and send it to a bunch of dealers and you try to get the best offer from whatever dealer then choose the dealer you want and ask them to match the deal. And actually idk how much it is, or if a membership to their website is the payment, but, they negotiate deals for people/customers. If they can or you can get an out the door price on the truck, then all you need to do is make the deal with the sales manager or person and then you bring a check when you go in to sign the paperwork.
@@don3394 Hey Don, I am buying a 4 wheel long bed, but an XL the more bells and whistles, the more things to break, I still have first Ford P/U 86 F2504/4 460motor 8600 gvw non catylst motor, look Ford released same basic pushrod motor and marketed as 7,3 displacement like the early diesel, By the way, driving 2007 Loaded Mopar now going back to Ford. Good luck
9:00 In the 80s the owner of our town grocery store had quite a bit of money and was in his 50s. He would test out a dealership by going to it wearing a tee-shirt and shorts. If no one waited on him he went to the next dealership. I think he enjoyed buying cars.
Actually, dressing down a little bit, or just not dressing up is a beautiful thing at a car dealer because until pushed to do so, sales people will pretty much ignore you. Imagine browsing uninterrupted until you really want to take a look at something. I'm an old fat dude that wears cargo shorts and T-shirts exclusively so I get looked at like I walked into their office with 2 full bags of garbage or I'm lost. If you don't think car dealers, like any other sales people, don't judge a book by it's cover, guess again. Cheers!
I worked for a Mercedes Dealer for 14 years. A guy came in one day to buy a used M-class SUV. He was a little dirty but it was sawdust so he wasn't unpleasant to be around. It was a $35,000 deal. (I had numerous salesman friends who filled me in later). He paid "cash". A few days later, he came back in to ask a question about how to operate a few functions in the vehicle. We saw him get out of the car and before he entered, the sales manager said, "Here comes the troll" to the surrounding people within earshot. Very disrespectful of someone who paid a chunk of her salary in one deal. She was a pile of dog crap anyway. One of the stupidest people I have met in my 52 years. Never, Never judge a book by its cover!
Hi Kimberly can you tell us what fee is charged for the dealer to process a credit card payment? Is it 2%? More or less? This information is valuable for those of us trying to put more money on a credit card. We need to understand the dealer's economics to figure out their limitations. Thanks.
Hi @slimjseattle I can remember ours going from 2% and then up to 3% per transaction and it really depends on the deal that was struck with the payment processing company. Also, I had buyers actually pay the processing fee so they could put more than our given limit which worked out well after I got approval to do so from the accounting department.
You guys mentioned not to bring a check into the finance office because this will make them angry. As a customer, who cares if they are upset. And if I'm going to pay cash by paying off the loan within 10-15 days after the financing was done, wont getting the loan ding my credit? (They will require a credit check). Just seems best to cut a check in the finance office and not fool around with credit check dings. BTW, you guys are great
I remember going out and looking at Porsche Turbos back in the 80’s my wife and I were dressed in Levi’s the dealers would not even come over and talk to us, until we went into Beverly Hills Porsche, they jumped up and came over and talked to us wanted to know if we would like to test drive the vehicle, they bent over backwards for us! Haha! In Beverly Hills you never know who has those deep pockets and they were smart enough to realize that!
Wondering whether the dealership may offer a discount if you agree to finance vs. paying cash? You get a few hundred off so they can make a little on their end then you pay the loan off within 30 days (assuming no pre-payment penalty).
My sales contract showed I got a dealer discount of $1,500.00. Not so. It gave the appearance they lowered the cars out the door price thus making the purchase more enticing.
These guys are super nice and smart, but the advice they give is so PRO Dealership it makes me question their motives. I guess once a salesmen always a salesmen ;-) lol
Exactly. I live in Connecticut and I bought a brand new car and they wouldn't take a personal check the only accepted a bank check. I went into the finance office with it and they offered me things to purchase which I refused but I don't know what this video is talking about by having you write a check on the spot. I guess if I purchased additional warranties they probably would have billed me I don't know the answer but I do know they required a bank check for the out the door price that I agreed with the car salesman
Maybe next vid you can explain how to buy a vehicle with cash and not get taken. Seems once you mention cash there's a plethora of fees associated. Every add I see mentions the finance price and when you try to email a dealer for a cash quote I get no response . Seems cash is taboo to dealers
I have used cash for the down payment. Now I want to take $9k cash next time I purchase a new car at a dealership. I have received cash ($2-6K) when I have sold a car.
In the UK cash transactions are not accepted due to the money laundering risks etc. Even bank transfers need to be reviewed and cleared, some dealerships want to hang onto the funds for and day or more before releasing the vehicle. Personal cheques are a problem too as there are various circumstances as to when they are cleare for value and for fate.
We called on a specific auto and they gave an OTD price. We had the bank print the check. The finance manager tried selling 4-5 options. We said "Thank you" and handed him the check and email giving us the price. He was very disappointed.
As a multi-millionaire, i walk into dealerships in a plain tshirt and jeans looking like a very average joe. It's funny when people ignore me at the luxury dealerships because they think I am not a serious buyer. I usually give my business too those who do not judge the book by its cover. :)
I've a friend who is a multi-millionaire. He owns a small farm and generally walks around his small town looking like a smelly farmer. He's got an MBA from Princeton (classmates with Meg Whitman) and was also the township supervisor in the small town town for many years. He buys 2K cars and drives them till they're dead.
Please tell us how it works when the buyer is using his own bank or credit union. Does he have to finish up the deal documents with the finance manager and then go away to the credit union to get the deal funded and then come back to pick up the car? Or is there a way to use outside financing without leaving the dealership (even on weekends?)
You could get a cashier's check from bank or credit union that is a few hundred or a thousand short of your target out-the-door price, and then at finalization: (1) pay remainder with cash, check or credit card; or (2) tell 'em "that's all I got, take it or leave it", then get up and WALK OUT if they don't accept it. USAA Federal Savings Bank offers a "sight draft" in the amount of the loan the Bank has approved you for. The dealer is supposed to accept it as if it were a cashier's check, but some dealers are suspicious.
I have only seen cash deals like that about 6 times in 7 years. One was a 22k down payment. The rest were 4 farmers and an MD getting divorced who had 37K in a duffle bag in 10s and 20s were his bills on choice.
@@namvet1968 When paying by check you will be escorted by the sales person out to the showroom and if you glance into the finance office you will see the finance person making a call. They will be calling the financial institution and ask if you have enough in your account to cover the amount on the check.
I heard Marco from Whiteboard Finance channel say that he or someone he knew paid for a New car in full with multiple credit cards, to get the Rewards points from each credit card company. He had the full cash amount in the bank to easily pay off each credit card in Full when they came in to be paid. The key he initially used at the beginning of the negotiations with the salesman was that he was thinking of financing the purchase, so they would bend some more on the final price of the vehicle. I wonder if all or most Dealerships allow you to pay the full amount with a credit card or credit cards???
@joshm3342 I'm sure it is dealership dependent, without most Refusing such payment method. But that's where you have to go in Prepared to play Hard Ball. Negotiate aggressively and be ready to walk out. I say shop for a vehicle at the time you mostly Want one and only a little cause you need one. If you go shopping when you Need one because your current one is about to die or has serious mechanical problems, then you are putting your ownself in a corner and essentially desperate for the car you are shopping around for. Even if the salesman does not know your desperate situation, the pressure they put on you to buy at the price/conditions (bank loan method, etc.) and you knowing your desperate situation, will cause you to most like buy the vehicle the wrong way and end up paying more than you should have.
Whenever I have purchased a used car, I always paid cash...never thought anything of it....most recent used truck from a dealer, had $9,000 in cash....dealer did not want to accept it. Honestly I never thought a dealer would take a check for that amount. I wont make that mistake again.
All of this information has convinced me that the burden of buying a new car is TOTALLY on the shoulders of the " customer " and has nearly turned me off from buying a car PERIOD! It literally gives me the impression that the customer should arrive prepared to do major battle and everyone inside that dealership is an enemy . I hate being made to feel like I'm doing a business a favor and that I should feel blessed that they are allowing me to buy something from them! At this point, I think I'll find some alternative and spend my hard earned money with a private party.
Just get your balls back from your wife/girlfriend and act like a man. You fem-men are afraid to talk to a car salesman? Pathetic.
facts
It's too bad you feel that way, but I understand. I've paid cash for my last two cars and I find, simply put, that if you do all of the necessary research as far as model and out the door price you're willing to pay, and be prepared to simply say "no thanks" and walk out the door. No reason for any conversation about a new or used car should ever get above normal talking volume. Here's my offer, if you counter, fine. Thanks for your time.
Gots me feeling the exact same way bro!
That’s because they are your enemy
If you tell them that you are a cash payer, do not expect to get a discount. The dealership makes money off your interest rate too so tell them that you are financing it and you will get the pricing down. After about a month, call up the lending bank and pay it off. This will make the dealership mad cuz you pulled one up on them. Take it from a former high volume dealership sales guy.
You don’t think the dealers are wise to that? Lol. As soon as you say you’re not sure how you will pay they will assume the worst case scenario for THEM and be difficult in the negotiation. And at the end, if you pay cash, they protected their profits……if you finance, they made MORE. Either way they have the upper hand.
Do you know how much of a possibility is it to get a loan and pay it off in a short amount of time with your credit card instead?
Please read your contract carefully because a lot of them have a prepayment penalty for trying to pay it of its a law allowed in most states to protect the loss of the lenders so do your research and inform yourself cause sometimes paying early costs more than the financing, yeah I know it’s ridiculous
The lender usually let you know when you can pay it off. For Kia right now is like a year
I went into a dealership one time planning to pay cash. To make a long story short they were very open about being able to offer a better deal if I financed it for 36 months and didn't pay it off for at least 90 days. The discount was $1,500 and I was only going to pay a few hundred in finance charges in 90 days. The dealership told me that the finance company gave them money for selling the loans and if I paid it off before 90 days they wouldn't get their money. Well I agreed to the deal. I thought I explained all this to my wife, but when the first payment came in the mail she just paid it off. The salesman called and wasn't happy, but all I could say was sorry, it was a mistake.
If the check is too high, then rip it up and write another. If the check is too low, then tell them you are not going to rewrite the check, take it or leave it. The customer could care less if the Finance Mgr 'shoots' his co-workers. I bought a car one time with a check, no financing, and the Finance Manager was trying unsuccessfully to sell me extra stuff, and he started whining and crying that they were not making any money on the deal. I stood up and said "if your that unhappy rip the check and the paper work up and I will just leave." The Finance manager shut up and completed the deal. The only reason the dealers do all this crap is because almost everyone, men and women, are all pussified.
Spot on mate!
Agreed... I don't know why these people think anyone cares how car dealerships feel. They certainly don't care how the customers feel and will do anything to pressure someone into a purchase.
Truth man
I’ve had finance managers furious with me because I made a deal for the purchase of a car and absolutely nothing else. None of their garbage warranties, paint coatings ect. and financed through my credit union.
It’s pretty entertaining to watch these clowns lose their minds.
@@frankvadnais3536 Well since I was not there, I can only make a guess, which is ... the Finance Mgr was probably not really upset, he was just ACTING upset. Most of them are professional salesmen, they work with hundreds of people a year closing car deals. Do you really think they would become unduly emotionally involved in your particular transaction? Highly unlikely.
Basically, you have to lie to dealerships about how you plan to pay for a vehicle if you are going to pay cash. I have been going through this for the last few weeks. They love to jump right into what your payments will be on a vehicle. I use the words "I have my own financing lined out" and most do not call or text back. By taking the money out of the bank and paying ourselves back, we are saving about 15k in interest on the vehicle over 5 years so it is well worth doing, it is just finding someone who will work on a cash deal seems almost impossible. It is a terrible business model when you have to go in lying to prepare for their lies, omissions, hidden fees and markups.
Your dad reminded me of the time when my significant other and I went to a new location for our dealership of choice. It was a early Friday night and the General Manager who we normally dealt with was busy so we just started looking around to see what was available. We where there for about a half hour and NO ONE said a word to us, they were to busy talking with one another (no other customers were there). The GM came out, saw us and we told him that we thought we were invisible. Now normally when we bought something he would give the deal to salesperson to handle for him; however, this time he was so upset that he kept the deal for himself. We bought 2 new cars that night and he had fun telling the next morning sales meeting what they had missed. I find your channel very informative.
Same thing happened to me and my husband last week at a used car dealer ship in NYC. We were rudely told to sit down and completely forgotten about as employees chit chatted. After an hour of watching ppl avoid us, we walked out. They had a great deal, and we were ready and I was desperate lol. We wouldn’t of even haggled too much. As much as I wanted that deal just out of principal we refused to give them our business.
I was selling Mitsubishis back in the mid 90's. We had a 3000 GT VR4 in the showroom that listed for around $50k. A farmer in an old beat up truck showed up and walked in the showroom. None of the "more experienced" sales people paid him a second glance, as he was quite disheveled. He started looking at the VR4 and I approached him. He asked me, "This thing fast?" I replied "Yes sir!" He then asked how much it was. When I told him the cost he, didn't say a word, turned around and walked out of the dealership. I thought he was leaving and went back to my desk. He then walked back in with two armfuls of mason jars filled with cash...walked up to me and said, "Should be about fifty thousand in here. Let's talk." He bought the car, drove it home that night....leaving his beat up pick up truck in the lot to be picked up in the morning. The other sales people couldn't believe it, nor could I!
I feel like he did that on purpose just for the shock factor. It wouldn't be the first time someone did that.
Farmers make the world go round
what a chad
This is the oldest story car dealers tell
@@steelydan449 I made a fat commission. I don't care if the story has been told before or not. It was the one really great sale I had in my one year of selling cars.
This video is the ultimate proof that cash buyers do not get to skip meeting with the finance officer. Everybody has to listen to the sales pitch for the extended warranty no matter what.
Gwin you can blame the lawyers for this. Too many dealerships have been sued because a customer has claimed that they would have purchased a protection plan from the dealership had it been offered to them in F&I. So now everyone hears the pitch and signs off that they were offered the various items and that they declined them. All the best, Ray
I was able to do this once. It was at an out-of-state dealership. They had a used car that was the same make, model and color of my car that was totaled. The price was a few hundred bucks more than my settlement. I agreed to the price, drove to a branch of my bank to get a cashier's check for the amount, and bought the car. They gave me a temp tag and off I went. Never saw the finance guy. (I had been looking for many months and everything I saw were several thousands more. Plus I wanted the same gold color, not black, white or silver.)
Put your feet on his desk and he or she will wrap it up rather quickly. Better yet wear your mowing sneakers with the big toe sticking out.😊
It's not about what the dealership want. It's what I want. You don't take cash or cashier's check, I go elsewhere
period
I purchased a car, paid cash by doing an electronic transfer from my bank account to theirs. The mistake I made was to tell the salesperson that I was paying cash upfront. After watching your channel I know that the saved very little.
As someone who has handled large sums of money everyday . You count everything into 500 or 1000 dollar increments. And after everything's counted like this. Then you add to the total
From my experience, I think you might have left out the most important point. Which is never tell them you are paying cash until the otd deal has been made! Cash is not king with a dealership
Nailed it! I was going to say the same thing. This is contrary to the way most people think. When I was working at a Honda Dealer one of my colleagues would actually tell his customers take what ever financing there is then when the first payment comes, pay it all off.
Agreed!
What if they ask if paying cash within the first 5 minutes of negotiations? First ?: Do you have a trade? 2nd ?: Are you financing or paying cash, 3rd ?: What down payment? I guess you have to baffle them with BS to avoid answering them. Sort of like Democrat nominees for cabinet positions "I am sorry Republican Senator, I don't know how to answer that at this time!"
@@veger5872 Do not tell them you are paying cash, be more subtle and just say you are putting 100% down.
@@veger5872 you can start off by asking, what monthly payment plans do you guys offer? You’re not telling them lie. You’re just not telling them you’re paying cash.
Ray is exactly right. One of my best deals was an 18 year old who came and looked at a nearly new Toyota Tacoma. He drove up in a beat up jeep cherokee missing a window and covered in mud. I went over and talked to him. He called his grandfather and I went with them to lunch and bought their lunch. They came back and bought the Tacoma and a New Dodge Challenger R/T Cash.
Did you put mind control drugs in the lunch meat?
🤣🤣🤣
So I have a question let's say I buy a $40,000 vehicle in cash. Will the IRS come hunting me down? I prefer not to go through the bank every month and would like to just pay once.
@@Jr._.2soild just write a personal check, or actually if you're paying that much maybe do a cashier's check. I don't think the IRS will hunt you down as long as you've always filed your taxes accordingly lmao
This video was right on time!
Through an inheritance, I'm able to pay for a vehicle in cash. I had no clue how to go about it. I also learned from you guys NOT to tell the dealer it'll be a cash/check deal. I've learned (SO) much off ur site!
Perfect timing!! Was wondering what the proper procedure was for paying cash in dealership ,came across this video that was made 9 months ago . Very good video once again!!!!
Answered my questions! thanks once more Ray, Zack, and Kimberly you guys are truly awesome!!!!
I would love to see the finance manager run out on the sales floor looking for who to berate. I'd literally start a slow clap. Also this is why, as a cash buyer, you come in with the expectation of writing 2 checks. Let's say the OTD price is 40,196.98 from the sales crook, have a check written for $39,000 then expect to write another check for the difference and hand it to the Finance Racketeer. You'll remember the look on the Finance pilferer's face, it's a beautiful thing. Cheers!
Outwest the Mennonite farmers are famous for buying expensive farm implements (a modern tractor combine can easily be $250,000 or more)and showing up in a group with boxes filled with cash!
I recently purchased a vehicle and never told them I was paying Cash. I negotiated over the phone until I got the price that was fair for both parties. Once I got to the financial manager, I noticed the interest rate was much higher than I know I qualified. I wanted to pay the full vehicle, so interest rate was of no concern. I did not like they were offering a higher interest rate until I brought it to their attention. It was immediately lowered to the lowest available. The Vehicle was delivered to my home, paperwork signed at my home. I paid their max amount on Credit Card (wanted travel miles). The remainder on a personal Check.
Nice!
this avoids problems with IRS?
I’m not understanding why the interest rate mattered if you were paying cash?
@@egomaniac247 probably just because they were going to screw him over with the interest rate because they thought he was going to finance
@@deathbyvanity1955 That's only if you pay in actual cash
My friend Deb went to the local Chevy dealer to purchase a new 2010 ZR1 Corvette that was on the sales floor. The sticker was around $110,000. She had a C3 Vette to trade in that she had purchased used at that dealer a few years before. Her boyfriend had recently died (a prominent local DJ) and left her a huge insurance settlement, an expensive SUV and a paid for condo. The male salespeople simply blew her off. She drove to a dealer 50 miles away and ordered the same ZR1, The salesperson at dealer #2 took her seriously and had the car shipped to him from the original dealer she had tried to buy the car from. A month or so later Deb purchased another new Corvette C6 convertible Grand Sport from dealer #2 and is now driving either a new C7 or C8 she bought from dealer #2. I have lost touch with Deb as I moved far out West to Arizona. Let that be a lesson to you sales folks!
Typical woman to spend money like water, of course that’s what they do when they don’t have to earn it.
In 1986 I worked as a car jockey for a car detailer. I would go to various dealers to pick up used cars that needed to be cleaned up for resale. On this day I was at McGuire Chevrolet in Bordentown, N.J.for that reason. I had time before the vehicle was ready for me so I found my way to the new car showroom. As I’m checking out a yellow Camaro Z/28 two customers wearing business suits and Keffiyehs walked in. One of them spotted a salesman, pointed to two Chevrolet Classics and opening two steel briefcases filled with cash said “Is this enough for those two?” I walked out of the showroom so I wouldn’t be seen laughing at two guys about to be fleeced but also not to be seen crying because there was no way I was getting a deal on the yellow Camaro. On a side note that was the day I met Barry Meguiar who was a close relative of the dealership owner.
When I bought my 19 Cruze, the salesman asked me pretty quickly how I was going to pay, when I said a check (which I will never do again) his enthusiasm and personality changed instantly. I was charged MSRP, but I wanted the car.
I paid cash for a car once. It was a state away, and I confirmed the full amount with the dealer over email. They said they only wanted a cashier's check, so I got one for the out the door (didn't know that exact term for it at the time) price. I was driven there by some family, tested the car, signed some paperwork, handed them the check, and drove it home.
Interesting that you say most dealers not only will accept personal checks but are wary of cashier's checks, as this place would only take a cashier's. Heh oh well, it worked out great.
I did the same thing, all over email. I hear that these days they prefer wire transfer because of cashier cheque fraud.
Sadly, my grandparents (Danish emigrants in the early 1900's), bought a new car with cash, only to have it destroyed in a barn fire a year later with no insurance. This happened in the
Great Depression, something my dad never recovered from.
As some others have said, the most important point would be to get the OTD price before mentioning how you're paying. Was this intentionally excluded? With as much dealership experience Kimberly and Ray have, I'm surprised a point as important as this was not included in a video about paying cash for a vehicle. Kevin Hunter 'The homework guy' has a couple of really good videos about paying cash for a vehicle. I believe you did a reaction video to one of his videos previously. Overall, I do enjoy your videos, even if they sometimes come off as having a bias towards dealerships. Keep up the good work!
Thanks Jason. We simply wanted to highlight the "how" to pay cash and things like what to do, what not to do and the questions you might want to ask the dealership before hand. I do hope it was helpful to some people as it does come from our years of experience. We do however, have videos and tons of information on our website and Community on when to discuss just how you'll be paying for your new vehicle.
Jason, 100% with you on this. LOVE this show, just good people who want to help. But yes, they have been so close to the dealerships they are forgetting that the dealership is the "feeding pit" for the sales people. We are but pray for them to feast on. Best option, NEVER EVER step foot in the dealership. I'll rent or test-drive a car at a dealer I'm not going to buy from (exception to my rule) before I buy, so I don't even deal with that nonsense. I do everything over the phone or internet (even better yet, I call with my google voice number so the lions can't get ahold of my #).... but, all dealer tracking systems (such as Dealerspike) now put you in their system even if you *67 your caller ID.... so scummy. We are simply buying a can of Green Beans from Safeway. There is NO difference between the greenbeans at Joe's New Care Lot or Sue's New Car Lot. They are all just a commodity. I think I'm going to start my own channel! Your Advocate Alliance.... is the"Your" the dealership or the customer... It makes me wonder. But again, good people but something is just a little off. If they tweet their message just a little, I'll keep being a fan. Waiting for them to invite me in to debate some of this stuff. Wonder if They can handle a boy from central Jersey or not?!
I just watched a different video by these guys "Questions to Never Answer when buying a car" and the father mentions that several times.
I was the fiance manager at a dealership, a guy shows up he is going to write a check for the car. He says I have $12, 000 I want to give you but I don't want to fill out the IRS form. I explained it is not a choice, if we take $10,000 or more the IRS form will have be filled out. He states if I am not willing to do it his way he is walking out. Told him I am sorry but I have no other choice. He walks. A week later report hits the news how 3 other dealerships in the area have been raided by the IRS, it was a sting operation by the IRS. This was in the late 80s.
When I was a P&C insurance agent, we had a client that was an older gentlemen and he wanted to pay everything in cash. He carried around 4k on his person. I advised him that was not the wisest thing to do. We dicussed finance etc. He is a wonderful guy but being in his early 80's (you would never know it!) he was not aware of the risks etc. He is still a client of my former co-agent! Use your finances wisely! My last comment :) NEVER judge people on the way the look! People who have money do not flaunt it. I know. :)
Yes!
SMART people who have money, don’t flaunt it.
Exactly! Many relatives, my best friend, & several other very wealthy people that I know look like they are homeless. Holes in their shoes, need a haircut, drive 32 year old cars with dents, & do not own a cell phone. That is how they became wealthy, by being thrifty!
In 1975, upon graduating with an engineering degree and landing a good-paying career job, I went car shopping at a local Ford dealer. I was wearing jeans and a t-shirt, and honestly, looked like a teenager. None of the salesmen approached me as I looked at the models on display in the showroom. I had to ask for assistance, and still they all ignored me, even though I was the only customer. I would have purchased one of the cars on the floor that day. I went next door to the Chevy dealer and bought a car from them, as they greeted me as soon as I walked in. Don't judge a book by its cover.
Absolutely right!!!
@bobcat baldfat drunkbeater Fords of that era were no better. The pollution requirements stole all the power from the engines and Japanese cars of that era were very small, and didn’t meet my needs.
I used to work in a high end technology store (computers etc). Our sales team always told us to make sure to approach people in sweatpants, white tees etc as not everyone wears their bank account.
As a young man I met a salesman at a Chevy dealer who would not get up from his chair. I then went to a Pontiac dealer where the salseman grabbed the keys to multiple cars, allowed me to test drive, etc. I came back with my Dad and we bought a new car. In the 8 years that followed, between my friends and I, that same Pontiac salseman netted 5 or 6 more sales.
@@joshm3342 I wish GM kept the Pontiac Div. instead of Buick.
My pop, Great uncle & their buddies were self-made men. always dressed in work clothes. Mainly overalls, work boots, denim shirt, and a hat. But could buy anything they wanted with cash . But my pop ( grandfather) was smart about it. If he wanted a piece of equipment for the excavation business or for the farm. He'd have the money in the bank just write a check out.
No wonder dealerships wouldn’t help me. I said I was paying up front. This is useful.
I always put as much on my credit card, so I can get points, then write a personal check. I always pay cash. I never buy the extended warranty.
Seems like you could negotiate a bit off if you didn’t use a credit card 🤔
@@davewmck no, you would pay the same. Usually the limit is $5000.
Thank you all! Im walking in tomorrow to purchase a car outright and this was very helpful!
I have had my car forever and am thinking of buying a new car with cash. I'm inhaling all your videos.Thank you so much.
Love this channel! We're looking to buy a new car, and your information has been so helpful. We're also planning on paying cash (personal check).
Love your clammer story. I was a retail banker and at a car show at the Memorial Colosseum in Fort Wayne, Indiana in the 80's. There were wealthy businessmen who sometimes dressed like their gardeners. I knew one from contact through a friendship with a rich friend. I saw this guy, whose estate had an African veldt, own security and lots of hidden perks. (A long time friend's father was the guy's horse stable manager, so the estate was our playground.) there, looking like a gardener. I watched every sales person blow off helping this guy until one I respected was being diligent. I sauntered over to him, gave him the back story, then as he was commencing a deal with the guy, announced it to the whole of the sales people. It was fun to watch them scramble to find some crumbs.
Back to new cars, in the 80's their was a simple formula on new cars: Sticker -discount -trade in = out the door price. Everything was a manipulation of this formula. Now, is this still the case? And I remember that manufacture and dealer incentives on particular models influenced the discount portion. Trade in was determined by the Actual Cash Value of the vehicle traded in.
I once had to have 2k in cash because I couldn't use a personal check and wasn't close enough to a branch of my bank to get a cashiers check and I was scared sh*tless that whole time and I was in a good neighborhood. Not only is it not safe but it is INCREDIBLY suspicious if you are walking around with enough cash (I'm assuming 20k and up) to buy a car.
Your too afraid to walk around with $2K ? What a wimp you are. Next time bring your wife/girlfriend/mother/grandmother to protect you.
Yeah. During the crack years in my city we had a drug dealer charged with murder pay his lawyers that way.
Although it is perfectly legal to carry any amount of cash, if you get stopped by police, they may sieze that cash without charging you of any crime. It's called CIVIL ASSET FORFEITURE, and is one of the most evil things allowed in the USA.
I never had a dealer accept a personal check for a car. So, is the only option to drive to the nearest bank form a cashier's check? Or can you do put your money in the bank account and authorize an ACH bank transfer?
Can you address when to say you are paying cash? After the deal is made? I’ve heard to negotiate the deal first and have it in writing since the dealer makes money on the financing.
You left out a very critical piece paying with cash.
At my work we get counterfeit money and it got so bad we had to purchase a high end counting machine ($5k) that can identify very well done counterfeit money.
The paper is hard to replicate but we have received washed bills where they will take a $5 and make it a $50.
Always hold the bill up to the light and match up the President. If you see a Lincoln water mark on a $50 it has been washed. The counting machine if high end will catch a washed bill.
Listening to Ray's story about the clam digger, anytime I go to purchase a vehicle, I purposely "dress down" to see how I am perceived.
Shawn I always told my salespeople not to wear expensive clothing or jewelry, I didn't want the customer to think to themselves that I don't want pay too much so they can wear $1000 suits. All the best, Ray
@@CarEdge The Ferengi 47th Rule of Acquisition: Don't trust a man wearing a better suit than your own. 😁
I stopped by the Nissan dealership a couple weeks ago dressed in my work out clothes (before working out off course) they didn’t give me the time of the day. Just know I took my business to another dealership
@@galsov Right on!
I used to be a teller at a bank. i would count that 35k in cash and bundle them for u in under 20 mins :P
Also i advise dealerships to have a cash counter machine on hand xD
I agree, it would have been nice to have one for the finance managers.
I'm very surprised at dealerships preferring a personal check to a cashier's check. Last vehicle I bought at a dealership for cash was a new motorcycle 20 years ago and they absolutely wanted a cashier's check.
Aside from having the opportunity to purchase an added option, why would I care about the finance officer getting upset?... Ef him
When I purchased my 2009 CRV brand new, I sat down and told the finance manager I did not want to purchase anything extra for the CRV. I did not need to hear his sell pitch. He was PISSED, but he honored my request. My wife and I still laugh about that to this day. I still have that CRV. LOL
I was in the aircraft business and we had just started our company in a leased hanger and had our first inventoried plane in the hanger . I was working on the weekend and this guy comes in he was in his 70s and had Oshkosh overalls on and said to me I would like to buy me one of these airplanes . I was like sure :-) we discussed the plane and went over the details about it and the pricing and he said thanks and left . A week later he comes back with this lady in her 30s and introduces to her and says she is the finance officer of his company she gives me her card and it has her name and her title which was “Trail Boss “ we discussed the aircraft again went over the numbers she asked if there any other associated costs I said no , he said we will take it . He wrote a personal check for 1.3 million. A month later we delivered the aircraft. As you guys eluded to you never know who is going to walk in and purchase something from you so treat everyone like they are a buyer no matter what you think . He was a customer of ours until he passed away and had purchased two more planes from us in that time .
Never judge a book by its cover .
i negotiated my trade and discounts to get an OTD price then i paid them with a cashiers check. i made it firm what im paying and not anymore than what was agreed on. we both got a good deal.
Loved this episode! I never thought of putting part of the purchase on a credit card -- but with all the fantastic cash back and points deals out there, this could be a nice perk. I wonder what the max limits are these days? Also, does the dealership call the bank after you write the check to confirm the funds are available? Some of us still save for cars -- inflation killed us this year -- but we're out there. So many great comments here -- you may want to do a sequel.
Keep in mind that dealerships sometimes have to pay service fees if the car buyer uses a credit card. Thus the dealer may refuse to let you use a credit card to buy a car or set a limit like say put 5K on your card but pay the rest using a check. As for your second question, dealerships have a special machine that can validate personal checks to make sure they're genuine and yes if need be, the dealership will call the bank.
If you put $5000 on the credit card that would be 1% rebate or $50, at 2% it is $100. Probably you could tell the dealer to knock off that chump change and not use a credit card. A dealer will not let you pay any more than that on your credit card, and probably not that much.
@@tommak6516not even worth the hassle for $50
I'm glad I decided to watch this video. I'm getting ready to go buy a used car with cash. And I would have done it completely backwards and all wrong. I thought having cash would be powerful. Now I know don't even talk money really with the salesman.
Nope. I don't wait to see if there are any "extras". There aren't any. I don't tell them it is a cash sale until I am in the finance room AFTER the P&S is signed. Once I have my price, I make the finance guy very sad and present a bank check for the EXACT amount of the P&S, period. They hate this, but I love it.
Why is the industry like this??? Isn’t paying cash the absolute best thing a customer could do for his or her finances?
Excellent point. I want to buy a new Honda with my personal check. It's convenient and I'll just say "undecided" until I get a OTD price. Then walk into the finance office and write my check for the agreed price.
I am in the process of shopping for a new car and I've been watching a lot of the videos on this channel, and I agree with some of the comments. I absolutely hate buying a car because of predatory sales tactics, and I have a number of bad experiences... Honda is the worst. I am dreading this. And no one should be made to feel this way about the second most expensive thing you own. It's not this hard to buy a lawn mower. You don't spend 6 hours at a store being worn down by layers of salespeople in a coordinated effort to get you to pay 3 times as much for one and several useless maintenance plans you'll never use. It's ridiculous. Ugh.
So let me get this straight - once I have the OTD and I'm headed to the Finance office, when and how do I mention I am paying cash? Do I just come out and say it or do I ask the finance numbers and what the interest would be and then tell them that over the years it will cost me more than I want to spend so I'll buy it in cash?
I’m waiting for the same answer to your question!
Same here id like to know!
I scrolled down further and seen that a person said they don't mention that they're paying cash until a P&S (Purchase and Sale Agreement) is signed in the finance office. Then they present their check for the exact P&S price to the finance manager
If I paid with a personal check, could I take the car the same day or does the dealership hold the vehicle until the check clears?....🤔🤔🤔
In many cities, if you pay for a car with paper money, at least one person in the building is going to think you are a narcotics dealer.
Though they may not care. Some people might even try to see if they can buy some from you.
Any transaction for $10,000 or more in cash or check is automatically reported to the IRS due to anti-money laundering regulations.
Unless you're a very hot chick. Then other "occupations" come to mind. 😁
All they have to do is try to buy some off me. They will find out otherwise.
Wow this is scary. You go in with the amount that you want to spend and the dealership is literally made to find more to add on to the price.
I have been told that to get your best deal on a car. Never tell them that you are paying cash up front. So, when do you tell them.
Absolutely love these stories of paying actual cash, in paper bills! Wow
There was one Lady who walked into a Porsche dealer dressed poorly. The salespeople ignored her. She was eying the most expensive one. She then DEMANDED service. Finally one of them walked up to her. "How much for this one??" (ALOT) To the shock of the salespeople, she started pulling hundred dollar bills out of her boots, and other clothes. She drove it home. That Woman was Grace Slick!! She could have bought every car in the place five times over. 😱
Right after WW2 my uncle was working a dealership in Reno, an older fellow entered the showroom floor and asked the price on a particular expensive vehicle. The answer he received was “more than you can afford grandpa “, about two weeks later the gentleman returned, walked up to my uncle and says “If you want too continue employment grab a broom and start sweeping if not leave the premises, a lesson in humility is on the plate for you “. Uncle found the broom and stayed 25 years.
It’s clear that you all have a great deal of experience in the car buying process and want to share you’re knowledge with consumers. Would it be possible to forgo the lengthy stories of fishermen and little old couples with bags of cash and focus clearly on the best way to conduct a cash purchase. I had to fast forward through these extended stories to get to the information I was looking for. Save the stories for a dealership retirement party. Thanks
This was very helpful. I want to pay cash for a car in September. Wasn’t sure what was the best way.
We have always paid cash for the cars we've bought. The last new car we bought we took a test drive and then wrote down the dealer's inventory number. We then went to the fleet sales manager office and asked what the fleet price was for that car. He gave us his fleet price, we wrote a check for that amount, and we had a new car. We went back to the salesman that had given us a test drive and gave him $100.
Dealing with the fleet manager is the only way to go.
I Love Dealership experiences an employee has had. Do more of them, please!
I take my dog with me, and he pees on the tire of a car in the showroom. If they complain then I also pee on a tire. At that point the tone of the negotiation has been set.
I'm saving up now for a ls-460 l.. I gave myself till may . Thanks for the heads up..
My Cousin did the same thing back in the 50's. He walked into a local car dealership with his greasy overalls on and asked about a brand new buick. Noone seemed to want to help him, and finally the manager dealt with him, saying the new Buick was 2500 I think. My cousin just whooped out a roll of hundreds and payed cash for it right there. What they didn't know is that he lived near me off grid. No electricity, no running water and worked for the school as a bus driver. Every quarter, the Superintendant would have to call him in the office and threaten him to cash his paychecks, so they could balance the books. Before he died, he dug up the money he had hidden around his house and my other cousin, he moved in with and left the money to, told me he had about 250k, left in the mid 90's.
Here in Spain, and in whole Europe, you can't pay in cash more than 1000 € (around 1050 $). Credit and debit cards has also daily limits and ammount limits. Bank checks have fees. It's better to pay by electronic bank transfer.
Interesting comment on credit cards. I once tried to buy a car on an Amex. Instead, they accepted a 10% down payment on the card. The dealer told me something about different consumer protection laws with credit card purchases, which made sense to me at the time.
Ray, again from the 80's, I remember a couple buying a car, and when the price was agreed, he looked at her and said "get out the sock"! she pulled out a sock of very smelly bills totally worth $27000, to pay for the vehicle. We took the money and immediately ran it to the bank' the smell was killing us. LOL
Better to tell the sales person you are open to/intend to finance so they can factor the back end in and then pivot during closing and say you are purchasing outright. You may get a slightly better deal
Of course, the manager then has the right to not sell you a car and tell you to have a great day.
@@timothyfoutz6147 well there are conceivable genuine reasons someone could pivot. For example I went intending to use 0% and a rebate I qualify for only to discover accepting a certain program may disqualify. Or you don’t accept the terms & conditions of the lender agreement, are unwilling to do business with lender, etc
@@joshgoldstein1568 Correct rebates and 0% virtually never stack. Typically you get the best deal by financing at least 10K with for example GMF or NMFC etc. Then pay the car off on the 2nd to 8th payment, depending on the terms. But lying to us is a bad plan. Especially at a luxury vehicle store. Especially right now it is a bad idea. The odds are you will be sent packing.
@@timothyfoutz6147 thanks for engaging on this but I don’t think it’s lying. As a consumer Im open to financing, especially at 0% or near 0%. All of this aside I only lease my cars and the biggest challenge for me has been getting an F&I manager to do refundable Multiple Security Deposits to buy money factor down below buy rate Tier 1+. Had Audi and Toyota managers go to great lengths to talk me out of doing it, saying it’s not a good deal, we only get a few of these a year, etc
@Tall RVr You have no idea what you are talking about. So I guess in whatever business you are in you get to pay 500 dollars a month to keep an 85K item in inventory for up to oh maybe 2 years. Then sell it for a loss as the markup was 1800 dollars. Maybe the holdback is another 1200. I sold a van once that we had had for 2 years 6 months for a dead loss of 10K plus floorplan costs etc. That is ok there will be no more dealers soon enough as things are going. We are supposed to have 300 cars. We have 4. Two are leaving on Sat. so then we will have two. We have three sold units coming in this week.
I negotiated the price of a car and then told them that I was paying cash. They told me that the negotiated price was only if I financed the car. Two hours and a lot of screaming later I got the car.
How did that turn out with the irs did you file a 8300 form
@@joyphoummavong3165 the dealer is the one that files the 8300 form because they're the one that is receiving the money, only the ones receiving the money that was for business has to file a 8300 form
Honesty is the best policy. If you don’t want the dealer to lie to you then you should not lie to them. Do your research before you show up to the dealership and if they can’t match the price you are willing to pay, you leave.
Small used car dealers will only accept bank checks. No personal checks, no cash, no money orders, no credit cards. I just tried yesterday with cash and the owner said, "No." I said, "Then, you drive me to my bank, pay for the bank check and drive me back." No deal came out of that encounter. It was only a $9,000 deal which cash is not reported to the IRS until $10,000 like you said.
It seems that the amount that can be paid by credit card is just as negotiable as the various fees that the dealership wants to add on. You can offer to pay the full OTD price by credit card, and be willing to just walk out if they won't accept that.
I'm confused as to how this video answers the question posed in the title, other than, "don't actually bring a pile of cash with you". Cash in most cases these days means "Not Financing/Paying via Certified Cheque/Bank Draft". Do you guys have a video for that? I'm about to buy!!!
What did you end up doing? Help us out instead of this video lol
You shouldn't be using actual physical cash tho, it's a hazard lol either use a check or debit card
I showed up with a trade in. Started negotiating. They let me leave the dealership. The next day I sold my trade in and called them back and told them I have a check for this amount out the door. I showed up with the check and told them to tell me to take my money and leave. I got my first pickup truck that day. Ended up getting a check in the mail for $40. Did notice finance persons eyes get big when I said I want to buy all of my cars like this.
That's what I'm thinking of doing. I know they'll rip me off on trade and it's an easy sell, plus I just sold a peice of land and want to pay cash. I've waited 5 years for this and trying to learn how the dealers look at cash buyers.
If I have an out the door price, there’s not going to be any changes. It’s out the door, full stop.
I bought a new camry 2021. I came to a dealer and asked for OTD and compared to price the dealer advertised on internet. I had a snapshot of the ad price. Then the sale manager asked me how do i want to pay. I told the sale manager, I have to go the bank to get Cashier's check. I asked the sale manger for statement for a final OTD price and he accepted my inquiry. The sale manage said the dealer added paint protection on it and wanted to charge me xtra 400 dollars. I dicovered the car was just delivered from manufacturer 1 hour prior i arrived the dealer. Actually, the car wheels and fenders were covered with plastic. It indicated that words from sale manager lied about color paint protection!
Giving away the game ... and we love it.❤
Please talk about how to structure the deal if you plan to pay case, when to spring that after deal is hammered out. I'm going to buy last truck of my life, next year when things are caught up, full size Super Duty Ford, F- 350 , Thanks
My situation & plan too! 👍
Since you are buying a brand new car you should prob join their website and gain access to their email templates they are really good, especially if you are buying new because the local dealerships have more than 1 of the truck that you want in stock. You just copy and paste and insert the type of truck you want and send it to a bunch of dealers and you try to get the best offer from whatever dealer then choose the dealer you want and ask them to match the deal.
And actually idk how much it is, or if a membership to their website is the payment, but, they negotiate deals for people/customers. If they can or you can get an out the door price on the truck, then all you need to do is make the deal with the sales manager or person and then you bring a check when you go in to sign the paperwork.
@@don3394 Hey Don, I am buying a 4 wheel long bed, but an XL the more bells and whistles, the more things to break, I still have first Ford P/U 86 F2504/4 460motor 8600 gvw non catylst motor, look Ford released same basic pushrod motor and marketed as 7,3 displacement like the early diesel, By the way, driving 2007 Loaded Mopar now going back to Ford. Good luck
9:00 In the 80s the owner of our town grocery store had quite a bit of money and was in his 50s. He would test out a dealership by going to it wearing a tee-shirt and shorts. If no one waited on him he went to the next dealership. I think he enjoyed buying cars.
Actually, dressing down a little bit, or just not dressing up is a beautiful thing at a car dealer because until pushed to do so, sales people will pretty much ignore you. Imagine browsing uninterrupted until you really want to take a look at something. I'm an old fat dude that wears cargo shorts and T-shirts exclusively so I get looked at like I walked into their office with 2 full bags of garbage or I'm lost. If you don't think car dealers, like any other sales people, don't judge a book by it's cover, guess again. Cheers!
I worked for a Mercedes Dealer for 14 years. A guy came in one day to buy a used M-class SUV. He was a little dirty but it was sawdust so he wasn't unpleasant to be around. It was a $35,000 deal. (I had numerous salesman friends who filled me in later). He paid "cash". A few days later, he came back in to ask a question about how to operate a few functions in the vehicle. We saw him get out of the car and before he entered, the sales manager said, "Here comes the troll" to the surrounding people within earshot. Very disrespectful of someone who paid a chunk of her salary in one deal. She was a pile of dog crap anyway. One of the stupidest people I have met in my 52 years. Never, Never judge a book by its cover!
Hi Kimberly can you tell us what fee is charged for the dealer to process a credit card payment? Is it 2%? More or less? This information is valuable for those of us trying to put more money on a credit card. We need to understand the dealer's economics to figure out their limitations. Thanks.
Hi @slimjseattle I can remember ours going from 2% and then up to 3% per transaction and it really depends on the deal that was struck with the payment processing company. Also, I had buyers actually pay the processing fee so they could put more than our given limit which worked out well after I got approval to do so from the accounting department.
@@dantedressage thank you!
Very beneficial video. Thank you for sharing.
And thank you for being here @David Murray !
You guys mentioned not to bring a check into the finance office because this will make them angry. As a customer, who cares if they are upset. And if I'm going to pay cash by paying off the loan within 10-15 days after the financing was done, wont getting the loan ding my credit? (They will require a credit check). Just seems best to cut a check in the finance office and not fool around with credit check dings. BTW, you guys are great
No even trying to be vulgar but your mom is so beautiful bro ❤️
I remember going out and looking at Porsche Turbos back in the 80’s my wife and I were dressed in Levi’s the dealers would not even come over and talk to us, until we went into Beverly Hills Porsche, they jumped up and came over and talked to us wanted to know if we would like to test drive the vehicle, they bent over backwards for us! Haha! In Beverly Hills you never know who has those deep pockets and they were smart enough to realize that!
Wondering whether the dealership may offer a discount if you agree to finance vs. paying cash? You get a few hundred off so they can make a little on their end then you pay the loan off within 30 days (assuming no pre-payment penalty).
My sales contract showed I got a dealer discount of $1,500.00. Not so. It gave the appearance they lowered the cars out the door price thus making the purchase more enticing.
No dealership in CT I’ve been in will accept a personal check. Bank check only and only up to $2500 on a CC.
These guys are super nice and smart, but the advice they give is so PRO Dealership it makes me question their motives. I guess once a salesmen always a salesmen ;-) lol
Exactly. I live in Connecticut and I bought a brand new car and they wouldn't take a personal check the only accepted a bank check. I went into the finance office with it and they offered me things to purchase which I refused but I don't know what this video is talking about by having you write a check on the spot. I guess if I purchased additional warranties they probably would have billed me I don't know the answer but I do know they required a bank check for the out the door price that I agreed with the car salesman
Please post more experience stories like these. Very interesting and helpful
Maybe next vid you can explain how to buy a vehicle with cash and not get taken. Seems once you mention cash there's a plethora of fees associated. Every add I see mentions the finance price and when you try to email a dealer for a cash quote I get no response . Seems cash is taboo to dealers
love your videos, always so informative!
I have used cash for the down payment. Now I want to take $9k cash next time I purchase a new car at a dealership. I have received cash ($2-6K) when I have sold a car.
In the UK cash transactions are not accepted due to the money laundering risks etc. Even bank transfers need to be reviewed and cleared, some dealerships want to hang onto the funds for and day or more before releasing the vehicle. Personal cheques are a problem too as there are various circumstances as to when they are cleare for value and for fate.
We called on a specific auto and they gave an OTD price. We had the bank print the check. The finance manager tried selling 4-5 options. We said "Thank you" and handed him the check and email giving us the price. He was very disappointed.
As a multi-millionaire, i walk into dealerships in a plain tshirt and jeans looking like a very average joe. It's funny when people ignore me at the luxury dealerships because they think I am not a serious buyer. I usually give my business too those who do not judge the book by its cover. :)
I've a friend who is a multi-millionaire. He owns a small farm and generally walks around his small town looking like a smelly farmer. He's got an MBA from Princeton (classmates with Meg Whitman) and was also the township supervisor in the small town town for many years. He buys 2K cars and drives them till they're dead.
Great report. Hats off to your team.
God Bless
If car salesmen/ car dealerships were this honest then we wouldn't be needing these videos. Thank you for this information.
Please tell us how it works when the buyer is using his own bank or credit union. Does he have to finish up the deal documents with the finance manager and then go away to the credit union to get the deal funded and then come back to pick up the car? Or is there a way to use outside financing without leaving the dealership (even on weekends?)
I too want to know
You could get a cashier's check from bank or credit union that is a few hundred or a thousand short of your target out-the-door price, and then at finalization: (1) pay remainder with cash, check or credit card; or (2) tell 'em "that's all I got, take it or leave it", then get up and WALK OUT if they don't accept it. USAA Federal Savings Bank offers a "sight draft" in the amount of the loan the Bank has approved you for. The dealer is supposed to accept it as if it were a cashier's check, but some dealers are suspicious.
IRS Form 8300 is also known as a CTR (Currency Transaction Report) required for cash transactions of $10k or more
You got it @Josh Goldstein ! Thank you for being here~!
Yes! Truth Josh.
I have only seen cash deals like that about 6 times in 7 years. One was a 22k down payment. The rest were 4 farmers and an MD getting divorced who had 37K in a duffle bag in 10s and 20s were his bills on choice.
Does that also apply to a personal check? If I pay 35,000 for a new Honda with my personal check is there any problem?
@@namvet1968 When paying by check you will be escorted by the sales person out to the showroom and if you glance into the finance office you will see the finance person making a call. They will be calling the financial institution and ask if you have enough in your account to cover the amount on the check.
I heard Marco from Whiteboard Finance channel say that he or someone he knew paid for a New car in full with multiple credit cards, to get the Rewards points from each credit card company. He had the full cash amount in the bank to easily pay off each credit card in Full when they came in to be paid. The key he initially used at the beginning of the negotiations with the salesman was that he was thinking of financing the purchase, so they would bend some more on the final price of the vehicle.
I wonder if all or most Dealerships allow you to pay the full amount with a credit card or credit cards???
Ask the dealer. Each dealer may have a different limit, but they'll tell you what it is.
@joshm3342 I'm sure it is dealership dependent, without most Refusing such payment method. But that's where you have to go in Prepared to play Hard Ball. Negotiate aggressively and be ready to walk out. I say shop for a vehicle at the time you mostly Want one and only a little cause you need one. If you go shopping when you Need one because your current one is about to die or has serious mechanical problems, then you are putting your ownself in a corner and essentially desperate for the car you are shopping around for. Even if the salesman does not know your desperate situation, the pressure they put on you to buy at the price/conditions (bank loan method, etc.) and you knowing your desperate situation, will cause you to most like buy the vehicle the wrong way and end up paying more than you should have.
Whenever I have purchased a used car, I always paid cash...never thought anything of it....most recent used truck from a dealer, had $9,000 in cash....dealer did not want to accept it. Honestly I never thought a dealer would take a check for that amount. I wont make that mistake again.