When to Disclose That I Will Be a Cash Buyer?

I plan on having a 2021 Tacoma built for me with all the options that I want. Apparently, I will have to give one of the dealerships some money to get the process started. At what point will I have to disclose to the dealership the bad news that I will be an all-cash buyer, when I submit the order to have the Tacoma built or when I pickup the finished product? Any other advice?

 

Why would this be bad news for the ‘ship other than not getting to make some money on a loan?

By cash do you mean personal check or more likely cashier’s check, or a duffle bag full of stacks?

I assume when they ask for the deposit you inform on method of payment then.

If you’ll pay the rest with cashier’s check on delivery...seems pretty straightforward.

 

Welcome to TW!

 

Get the price all nailed down then when they start to discuss payments, interest rates or loans, throw that at them.

 

^ This.

Alternatively, try and further the deal. Dealers get a chargeback (extra incentive money from the bank) if the car is financed for over a certain period of time, usually 3 months. In exchange for holding a loan for a few months so they can get their chargeback amount, they may be willing to drop the price a little more vs a straight cash deal.

 

Welcome to TacomaWorld

 

Welcome to TW!

 

I haven't had a dealership care at all how they get their money. It's never changed the deal if I use my own financing cash or their bank.

 

I play along as if I'm financing through them to get them thinking that I will make them more money over time, so I let them see what kind of rate they can get me. But....... I always have my financing prearranged and has always been a lower rate.

I also don't even go in and talk numbers until I have absolutely exhausted all test drives, tire kicking, research, etc on what model, features, color, etc. Once I know EXACTLY what I am buying, I then begin the game.

You should easily be able to keep your payment plan completely off the table until you have exactly what you are looking to buy either in front of you, or on paper and have the out the door price in writing. Then you can pay as you like. Just remember to ignore the finance guy as he tries his darnedest to upsell all the silly stuff you won't ever need.

 

Welcome to TW, get the best price agreed and written down. After that it really doesn’t matter as the dealer gets paid out when you take title regardless.

If for some strange reason the sell price is lower with financing (such as the dealer gets an extra incentive) then negotiate and take the lower price and pay off the loan with monthly payment #1.

 

When you negotiate they will do the 4 box on you. Everybody focuses on 1 of 4. Price, interest rate, monthly payment, or down payment. Let them do this, but focus on the price. They will try and make it up on the other 3, but who cares. Then when you agree to the sales price and sign it in front of the salesmen, then you know what the price should actually be and can let them know it's a cash sale.

 

You are absolutely correct in questioning how to take advantage, or perhaps more properly how to prevent being taken advantage of... when making a deal on a new vehicle.

These guys selling trucks are either trained experts, or they are being directed by experts in wrangling ever possible dime from your pocket.

And considering the number of dollars involved, you will probably make or lose more money per hour of time and effort expended than you will ever make at a job for wages.

My advice is to insist on negotiating each facet of your purchase separately. The dealership will want to negotiate everything as a package so it is easy to confuse you. They will insist that it is normal, and will try to make you uncomfortable for asking to break things down and take things one step at a time. Start with the price you are willing to pay for the vehicle. Just remember that you have all the power as long as the money is in your own pocket and you have feet to walk out.

I've bought a popular new vehicle in high demand, MSRP at 32K plus dealer mark-up additions, for 24K out the door. It can be done. Just remember that if they don't sell you something at a profit for them... somebody else will. Your feet are your best tool for getting a good deal.

 

And make sure they don't hide extended warranties, paint protect, and all that other bs in the price. If you want it, negotiate it with the finance guy. They will run your credit, and they will likely set up a contingency loan in case your check bounces. Don't be surprised by this.

 

^^^... this!

 

I just put my $500 down to get my Pro reserved and built. The dealer didn't even ask about how it was going to be paid on full (I'm also cash buyer). I negotiated sale price before it was ordered though not including TTL/Dealer. They wouldn't do OTD price until truck on lot.

 

It may work differently with a truck that is still being built or in route, but when I got my '17 Taco it was in a different state 3-4 hours away. I negotiated the total OTD price over the internet making 4 different dealerships fight for my sale. I just kept pushing the lowest bid in front of each dealer until all but one dropped out completely. Then I screwed with the last one a bit more just to see how much further I could go.

In the end that last dealer drove out of state and had my truck available the next day for me with only 3 miles on it.

MSRP was $36,500ish, my total OTD agreed on price before I even saw the truck was $33,400. That is was what I paid.

 

This is exactly how I normally operate haha. I am a contracts manager and am used to negotiating multimillion dollar contracts, so it is always fun to do car sales. The issue with the new Pro's in AZ is all of them are bought even before they are being built (mine doesn't even start being built until May 28th..). Only 3 dealers in the whole state and the ones in NM/CA within a reasonable drive had build slots. 2 wanted 56k+. Was able to get the last one to MSRP... first time I have bought a car at MSRP in 20 yrs. Hoping it is worth it, but it is a present to myself to see me through 2nd bout of cancer.

 

It will be bad news for the dealership for the very reason that you suggest. I plan on paying with a personal check or a cashier's check.

 

I think that some dealerships may not let you pay OTD up front because they'll put your "build" on a list and keep an eye out for similar inventory at other dealerships. They'll trade inventory then give you a call and say, "Hey, this is your truck, just with these extra options, etc." and negotiate the difference. Hard to imagine that happening with national inventory so crazy right now, though, esp for TRD Pros.

 

Yea, there is no inventory. I have the VIN for the truck being built, and it's status (guess VIN is also reserved, which makes sense b/c we do the same with SN's for critical parts).