Buying new with cash. Need advice.

Thanks guys for all your advice. I think im going to try the internet dealership route first.

 

Never tell them you're paying cash. They make more money if you finance so they won't come down on price as much if you tell them you're gonna pay cash. And don't pay sticker price.

 

I have brought 6 or 7 cars across the border with no issue.
On my Tacoma I saved almost $13,000.00. My cousin saved almost $24,000 on his Audi S5.
My truck 4x4 TRD Off Road Access Cab was just under $30,000 sitting fully licensed on my driveway and at the time we payed 15% tax vs your 5% tax so subtract another 10% in savings.

If paying the $200 import fee at the border is getting raped, to save $13,000.00 then I'll bend over any day.

If you have any questions about importing a truck let me know.

Shawn.

 

ya I dont really know all the details but I read about a guy importing from the states and he said there was 3 kind of taxes he had to pay when crossing the border and he only came out 2 or 3 grand on top. Can I just go down there a buy one or do I have to let the border crossing know and talk to the dealer??

Also how would I pay for it in the states? I doubt they would take a certified check from a Canadian bank. Taking $40,000 across the border might raise suspicion. Unless I could take it out at a bank in the states? Uhhg so many questions lol

 

The only tax I had to pay was when I got plates at the DMV.
As far as I know, other then Michigan, you don't pay State tax until you license the vehicle. Since you are not licensing the truck in the States, no State tax is payed.

It really is very easy. All you need is a letter from the dealer indicating that there are no outstanding recalls, fill out a form at the border, get a second form from the RIV office, bring your truck to Canadian Tire for inspection, then go get your plates. The whole process took me less then 4 hours.

Shawn

 

Oh, and my Toyota dealer took a certified cheque, but the dealer we used for our Lexus RX350 took a wire transfer. Both very easy to do.

The warranties on both my truck and the Lexus are good here in Canada. I've never even had a dealer even mention the my truck was from the States.

Shawn

 

Thanks for the info. Im definitely gonna consider this.

 

Internet sales department. They'll have no problem working with you. Find a larger dealership near the border...I'm sure you're not the first to want to do this...

 

Don't tell them you are paying cash.

Go through the whole process trying to get your best deal. Then tell them before signing is going to be cash.

But is going to be your truck get what you like. I would go for the toyota if it was me.

 

Ya im pretty sure I will go with tacoma. Does anyone know if the warranty crosses over?

 

Here is what I usually do. I agree on a price first, then go through their financing department. I get any cash back rebates or anything else they offer. I take the cash back over the lower interest rate. Once the deal is done, the next month I write a check for the cost of the truck and its paid for. I got a 7 or 8% interest rate on my wifes Highlander but didn't care because they gave me 1K cash back and it was paid for within two weeks.
Dealerships actually make more off the financing than the truck so they give more incentives than buying w/ cash. The old days of cash is king, no longer exists at your local stealership.

 

I totaly agree. After working at a dealership, you will get a better deal if you use the dealer financing then pay it off. The dealership makes money on the kick backs from the finance company which gives them more lee-way on the price.

 

I will have to do the math here because there are a gazillion hidden fees when financing.

Paying cash on a depreciating asset is not a bad idea if you plan to keep it for a long time, because on a loan aside from interest you add depreciation and like most people out there you may find yourself upside down :/

 

I'll echo what some of the others have said here, as I was literally talking to the top financing guy at my dealership last night as I signed the papers.

Car sales can profit on two sides: front end, and back end. Front end profit is selling the car for higher than invoice. Dealers typically do not make much, if any, front end profit on new car sales. The front end profit is typically reserved for used car sales. Back end profit is the money they make in the finance department by the interest in your loan and selling that loan to Toyota. New car sales is almost ENTIRELY back end profit.

That being said, going into the dealership and saying "I want to pay cash and I want this car near invoice" isn't going to really get you anywhere, because then you're taking away both front and back end profit. However, if you go into the dealership and say "I'd like to finance as much of this as possible, but I want a good price on the truck." the sales rep is likely going to be willing to cut most of the front end profit because he's going to make some good money on the back end.

Finance the truck, make the monthly payments for a year to boost your credit, and then just pay it off. Or, if you don't care about boosting your credit, just finance it and pay it off on the first payment.

 

I'd work on building my credit first before deciding to buy a car with cash outright. My 4Runner was bought with cash and didn't help with my credit at all. Could have had it financed but a 17% APR was just a little too much for a first time buyer. I didn't start building my credit until I bought my Civic. Then when I bought my TSX I had good credit but not enough history. And now with the Tacoma I'm sitting at excellent credit and got a 0.9% APR. It will be paid off within 3 years and by that time I will have an excellent credit score to buy a house.

 

before considering buying american and imoprting get ahold of transport canada and make sure you are fully informed on the costs and odd items that will need to be updated/modified/changed to meet canadian requirements. off the top of my head i don't remember what the few small items are with the tacoma but i do recall reading on this site about some minor things that had to be done. also take note that i believe it is toyota policy to sell new to only persons with addresses in the country of purchase when it comes to american vs canadian. i might not be fully correct but there are complications with this process. another option is to pay an import company the fees to have them take care of all of the hassles. one more important thing to note is the variety of issues that people are having with new tacomas, the vibes and rattles and so on, don't do a buy without driving unless you can negotiate something into the deal, the seller will always say it's a new toyota it's perfect but they are not all perfect.

 

Im pretty sure the tacoma is all good to cross the border. But your right about all the little hidden fees, I know there would be some. Iv also heard about this only selling to peoples with american addresses. But Iv read some dealerships will do it.

 

My dealership made me sign a piece of paper promising that I wouldn't take my truck out of the country and sell it for at least 2 years. This was something directly from Toyota and Canada was specifically mentioned.

 

This is good advice, the only problem is I have started a new job a month ago. While it pays good money, I think you have to be at a job for a certain amount of time. 3 months I think. I could always just wait.

 

Thats crazy. Its your truck, you think you could do what you want with it.