Need advice paying cash for new truck

I would just negotiate as usual, wouldn't mention financing. That's a great price though. Paid more than that for my '16 in SoCal lol

 

I do not know if it's true but I have researched to many articles that state...never let a dealership you are paying cash. It makes sense if you think about it. Dealerships in general try to tell you there is a 500 to 1000k processing fee. Thats free money in pocket for them. They cannot add extra fees if you do not agree. When you finance I know this for a fact. When you finance they try to add every extra fee they can by my past experiences. I have owned a decent amount of cars in my life time. I have made mistakes with these extra b.s. fees. I'm just in the position for the first time to say hey here is what we agreed to early I really do not have a finance company I have decided to pay cash. I want to see if they back off there better price. It will be another learning experience and I will post results.

 

When you pay cash for a car/truck, you own them.

 

Many times if they think you are financing, they will focus on dealing around a monthly payment rather than what you are paying for the vehicle. Avoid that play, focus on a bottom-line total amount. Some of the additional fees may be standard that they have to include on the sales order, but they can knock the price down to cover. My rule of thumb on Toyotas (outside of any specials they might be running) is no more than $500 over dealer invoice. That is a fair deal. And those dealer-installed options are WAY marked up to gain them some dealing room, knock those off as well.

 

Depends on dealer. I've had friends do the cash thing before. Some found not saying anything and going with dealer financing then paying it immediately saved them money since dealer lowered price anticipating getting something on the financing end. I've heard others say I have cash in my hand don't say how much. What's it gonna take for me to walk out of here with this. Remember end of month sales guy may need the extra sale and may be able to get you a good deal just to hit numbers. Depends on situation.

 

I did this on my last truck. If you can contact the fleet dealer, tell them what you're doing and set up an appointment. They can only charge you a couple hundred over list price.

 

You can adopt me. I'll even keep it washed waxed and gassed up. Grades are good. I'm not in school. May I call you daddy?

 

Be careful with that. Some financing terms have a Prepayment Penalty. Usually a few months before you're allowed to pay it off in full.

 

Exactly phsycle that's why I said you gotta be careful and think of and plan for everything .

 

Have you thoroughly considered financing?

Time value of money is key here and an attractive financing rate below 3% would beat the current inflation rate of approx 2.8%.

These are small figures but I wouldn't argue with the liquidity of having a fast stack of cash in the bank over a nice truck.

 

It just seems crazy to me I would have any penalties. I'm a realised. Why punish me when you can you mark on your dry earse board you sold a truck? Maybe you did not make a lot compared to the average joe. You still had another sale and you can explain to your boss you did not know he was a cash sale deal. Dealership will not lose money but it may not be the most profitability sale. In the end you moved another truck off the lot. I know there is a quota of how many cars and trucks you move at a dealership.

 

I paid cash for mine. Just tell them you're not sure if they ask how you're paying. They won't pry. They're more interested in trying to get you to agree on a price. I don't even discuss that with the salesman and just bring it up in the finance room.

The only time it became an issue for me was a salesman tactic to only discuss payment amount. He literally wouldn't get away from talking about payment when I was trying to get the total otd price. I was annoyed and just left.

 

I penciled it out. It's hundreds of dollars saved max. No more. It's really not worth the hassle of filling out all the bank paperwork. Even then it absolutely drives me crazy to look at the registration and have the registered owner yourself and the actual owner some bank. Then you have to get a new title issued later on. Which is $60 in my state wiping out even more of the savings.

 

Its the idea of liquidity.

I suppose this is ultimately personal preference but it's generally best to maintain the option of liquidity at all costs.

Push comes to shove you can just pay off the loan if you need to. There might be prepayment penalties but a simple call to the bank will sort things out.

Also, the paperwork hassle is mostly left to the dealership.

 

Thanks that's helpful. I'm willing to drive 250 miles to any dealership if I have to do that. I just do not think cash customers should have to suffer. Yes I know it's not as much profit but in the end they moved another car or truck. I know dealerships need that stat. They can penalize people who finance but not me. I will buy a 2017 to 2018 with 10k or less miles and be hassle free if that's what it takes from private dealer.

 

Honestly considering the 0% financing available I'd just finance it.

 

Is there a reason you're not financing?

Not trying to probe, I would just like to know if there is a particular benefit I haven't thought about.

 

Oh boy, going car shopping. My favorite!



Ok, just remember, it’s you against them. Buy near the last day of the Month, they like to top off their sales numbers those days more than the other days. Turn the sale around in your favor and say things they like to say such as “make me an offer that will sell this truck today” and “I would really like to buy this truck from you” and ask for free stuff like an OEM bed mat and other goodies.

 

This might be dealer specific. We wrote a $13,000 personal check for a down payment and they took it without any questions. The finance department didn't look so happy when he realized we were financing much less than he initially expected. Also as many mentioned make sure you go over everything really well. He just kept focusing on what our monthly payment would be, but it didn't jive with what I calculated and it turned out they had added a bunch of stuff and were just trying to slip it past us and hoping we would sign without noticing it. When you start dealing with the overall price it makes things much easier because you will immediately notice if they try slipping something in.

 

some will let you put up to 5K on a CC. that's a c note back assuming you have a 2% cash back card. double win