Don't say "I'm Paying Cash" at Car Dealerships

[ford man xf]

When buying a new car are the days of paying cash and getting a better deal gone? I came across an interesting video on YouTube, I know its in the USA but it does have some good points about negotiating a good deal with the dealership and not mentioning that you will pay cash.

It's basically arguing that now finance rather than cash will get you a better deal with the dealership? Is it better to just get finance and pay it off super quick?

Is there any good tips from new car buyers on here that worked for them?

Heres the video: https://www.youtube.com/watch?v=gLxVyeFmod8

[Tassie f100]

Dealers aren’t interested in cash details because they get kick backs, amounting to hundreds of dollars, from finance companies for signing up buyers to buy on finance.

[ozpacman]

The video didn't open for me mate.

Dealerships are not really interested in you paying cash because there is good commission in arranging your finance for you.

As well as that it's probably much easier to upsell you into a higher spec model and some genuine accessories which they can also wrap into the finance, because "for only x amount a week more you can have blah blah blah extra!"

Then the Ming Moll wanders over and waves her 'products' under your nose and "Ahh, what the heck. We can wrap the paint protection, rust proofing, mats and fabric treatment in as well!"

If you're paying cash they know you're there to deal hard.

I pay cash (well, my own money via a bank transfer anyway) so I tend to make them work pretty hard to sell me a car.

[CyberWasp]

Isn't there a new law coming to limit cash to 10K transactions or something?

[Tassie f100]

Originally Posted by CyberWasp

Isn't there a new law coming to limit cash to 10K transactions or something?

You are right,but paying cash is a fairly loose term.What it really means is you want to pay by cheque, bank transfer etc on signing the deal,rather than using term financing

[IanC]

Originally Posted by CyberWasp

Isn't there a new law coming to limit cash to 10K transactions or something?

That is to stop people rocking up with a suitcase full of 50s. If you front up with a bank cheque or do a bank transfer that is as good as cash and you don't have the risks of walking around with a big wad of money.

The way I deal with the salesmen is when they ask how I intend to pay or do I want finance I say "Hang on a minute. The first thing is for us to decide what price it is and whether I want to buy it at that price or not."

[fiestaz]

The salesman couldn’t care less how you pay for the car. It truly is a waste of breath trying to get a better deal “for cash”.

The business manager (who does the money side) does care because they’d rather you finance it.

[Vekgib]

Originally Posted by fiestaz

The salesman couldn’t care less how you pay for the car. It truly is a waste of breath trying to get a better deal “for cash”.

The business manager (who does the money side) does care because they’d rather you finance it.

True that.
Once Mrs Vekgib settled on buying a Corolla, for the price she wanted, the dealership did all they could to get her to buy it under finance.
Even when she returned with $23k in 100's, the business manager was still pushing the finance route.

[xxx000]

Originally Posted by IanC

That is to stop people rocking up with a suitcase full of 50s. If you front up with a bank cheque or do a bank transfer that is as good as cash and you don't have the risks of walking around with a big wad of money.

The way I deal with the salesmen is when they ask how I intend to pay or do I want finance I say "Hang on a minute. The first thing is for us to decide what price it is and whether I want to buy it at that price or not."

Bank cheques can bounce so they aren't as good as cash.

[bungarra]

Originally Posted by CyberWasp

Isn't there a new law coming to limit cash to 10K transactions or something?

Half right, you can still spend over 10K in cash but the institution you are buying from (car yard, Harvey Norman etc) or the bank you take your money out of or deposit into, are required to report it to AusTrack, The limit previously on bank deposits was 5K.

[Mulva]

Originally Posted by CyberWasp

Isn't there a new law coming to limit cash to 10K transactions or something?

Think you can still do cash transactions for $10k+ but the transaction needs to be reported to Govco???

Ask an elderly Italian or Greek gent - they generally like to deal in cash. [/stereotype]

EDIT: Beaten by Bungarra

[gossy]

Originally Posted by Mulva

Think you can still do cash transactions for $10k+ but the transaction needs to be reported to Govco???

Ask an elderly Italian or Greek gent - they generally like to deal in cash. [/stereotype]

EDIT: Beaten by Bungarra

https://youtu.be/lsicvYuBdJM?t=27

[You Yangs]

Originally Posted by ozpacman

Then the Ming Moll wanders over and waves her 'products' under your nose and "Ahh, what the heck. We can wrap the paint protection, rust proofing, mats and fabric treatment in as well!"

Always avoid the Ming Mole!!

[ebv8]

a mate of mine sold a boat (he was a dealer) for about $45k and the buyer paid cash
they had to shut the doors and all the dealers counted the money for the next few hours
aparently when finished they scraped the table and had a party...

[adyadad]

Originally Posted by Vekgib

True that.
Once Mrs Vekgib settled on buying a Corolla, for the price she wanted, the dealership did all they could to get her to buy it under finance.
Even when she returned with $23k in 100's, the business manager was still pushing the finance route.

I bought a new car a couple of years ago. The salesman didn't care but the manager pushed the finance. When I said I had all the purchase price, he offered finance for half the price. I still paid for it all.

[Pis-ton broke]

Originally Posted by CyberWasp

Isn't there a new law coming to limit cash to 10K transactions or something?

its govco trying to push everybody into a cashless society. maybe in five years they will says 5k max cash transactions, slowly,slowly they work towards what the govco wants.

thats how the govco win, very sneaky. (ie. passing controversial laws on or just before long weekends). the cash economy, is an economy that the govco cant control or tax.

you ever done a cash job (cashie) for someone? and did you pay tax on it?

[bartaxr8]

Originally Posted by Mulva

Think you can still do cash transactions for $10k+ but the transaction needs to be reported to Govco???

Ask an elderly Italian or Greek gent - they generally like to deal in cash. [/stereotype]

EDIT: Beaten by Bungarra

The cash ban isn't law........yet. It has just been through a Senate Economics Legislation Committee and looks like becoming law. In essence, cash transactions above $10,0000 between an individual and a business will be illegal, with a punishment of 2 years jail/$25,000 fine. Transactions between individuals are ok.

If it can be proven that you have made two transactions for the same goods or services over the $10,0000 limit, this is also illegal under the legislation.

[Mulva]

Cash is still king when buying privately off gumtree - seems to trump the offers of swap for lizard and busted fish tank.

[X-AHH]

Related to the topic.

My mother whose an 85 year old pensioner had to pay a 4% surcharge for paying for her carpets to be cleaned by one of the leading cleaning companies because she paid in cash.

I was about to go to town on them but discovered that it was clearly displayed on their website under the terms and conditions. It seems that payments in cash are becoming a thing of the past.

She and everyone else in the family will never use that company again.

[Tassie f100]

A lot of places now won’t accept cash at all.Probably costs a small business at least an hour every couple of days to count cash, then go to bank,stand in queue then back to the office.When it costs $30-40/hr at least 3 hours/week it gets a bit expensive.

[hayseed]

Originally Posted by xahh

Related to the topic.

My mother whose an 85 year old pensioner had to pay a 4% surcharge for paying for her carpets to be cleaned by one of the leading cleaning companies because she paid in cash.

I was about to go to town on them but discovered that it was clearly displayed on their website under the terms and conditions. It seems that payments in cash are becoming a thing of the past.

She and everyone else in the family will never use that company again.

About 12 months ago I took my elderly Mother to e Medical appointment in Canberra. Whilst We were paying her Bill another elderly Woman was being served beside us by another receptionist, When Told the amount Owing, She pulled out a Roll & laid the EXACT amount on the Counter (From memory $260)Only to be informed that We Don't accept Cash........ Eftpos or Credit card Only. .Old Girl says I don't have a card never have & never Will..

They were Both eyebrow to eyebrow When We Left ..NFI on the outcome...

[GCRXR6]

Originally Posted by Tassie f100

A lot of places now won’t accept cash at all.Probably costs a small business at least an hour every couple of days to count cash, then go to bank,stand in queue then back to the office.When it costs $30-40/hr at least 3 hours/week it gets a bit expensive.

Exactly. Some one has to pay for that time, i.e. the customer. Most businesses would have that figured into their hourly rate and not state it, just like power or rent, depreciation of tools etc.

[GCRXR6]

Originally Posted by hayseed

About 12 months ago I took my elderly Mother to e Medical appointment in Canberra. Whilst We were paying her Bill another elderly Woman was being served beside us by another receptionist, When Told the amount Owing, She pulled out a Roll & laid the EXACT amount on the Counter (From memory $260)Only to be informed that We Don't accept Cash........ Eftpos or Credit card Only. .Old Girl says I don't have a card never have & never Will..

They were Both eyebrow to eyebrow When We Left ..NFI on the outcome...

I wonder how that would be legal. I mean, cash is legal tender. To refuse cash is to decline payment?

[hayseed]

Originally Posted by GCRXR6

I wonder how that would be legal. I mean, cash is legal tender. To refuse cash is to decline payment?

Mum & I were only talking about it last weekend. We both agreed, We would've walked out & left the cash on the counter....

[M&Ms]

Well if you can score finance at the special rates on offer at times (1.9% or 2.9% comparison rates), you'd be silly to pay for the car upfront! I bought my car with an advertised 1.9% comparison rate, worked out to be 0.7% in my case, interest rate is 0.08% for 3 years. Why wouldn't you!

[Pis-ton broke]

Originally Posted by GCRXR6

I wonder how that would be legal. I mean, cash is legal tender. To refuse cash is to decline payment?

after they refuse the cash, just walk out.

they should take cash.

[CATXR8]

Their is a law which states how much ( cash - each value of )money you can pay with.

Also no cash means employers can't steal money.

The other thing is the current young population can't add / subtract / read.
1. At woolies cost was $ 24.50 gave a $ 50 note and after 3 attempts to give me the right change I ended up tell the cashier what the change should be.

2. Went through McDonalds drive thru as I arrived at the pay window the eft machine was put to me. I said no and gave cash . The look on her faces was what to do now.

[FTE217]

Originally Posted by M&Ms

Well if you can score finance at the special rates on offer at times (1.9% or 2.9% comparison rates), you'd be silly to pay for the car upfront! I bought my car with an advertised 1.9% comparison rate, worked out to be 0.7% in my case, interest rate is 0.08% for 3 years. Why wouldn't you!

well its all and great at low rates but what about the interest and residual ?
What you pay over 3yrs + that irks me no matter the low rates.

I DD the whole buy price when Sprint was ready - why did I ? because I could fortunately. Finance is great when you haven't the liquid.
Buying any car your at a loss the moment you drive off, why pay more than what its worth over a loan period - tax concessions arn't that great in any case and IF you were to hang onto the car its cough cough to a already and more depreciating item hence many stay in the finance/lease merry go round.
Buying outright IF you can reduce's the leakage, why wouldn't you.

[KobiXR6T]

Originally Posted by FTE217

well its all and great at low rates but what about the interest and residual ?
What you pay over 3yrs + that irks me no matter the low rates.

I DD the whole buy price when Sprint was ready - why did I ? because I could fortunately. Finance is great when you haven't the liquid.
Buying any car your at a loss the moment you drive off, why pay more than what its worth over a loan period - tax concessions arn't that great in any case and IF you were to hang onto the car its cough cough to a already and more depreciating item hence many stay in the finance/lease merry go round.
Buying outright IF you can reduce's the leakage, why wouldn't you.

I've been crunching some numbers on the old novated lease at the moment. I've been through it a couple times now, and in my situation at the end of 3 years I still come out ahead of where I'd be buying upfront.. Then I also save a bit more having that surplus against the mortgage instead of tied up with the car.

What I don't like is the amount coin that gets moved into the hands of the finance and leasing company. I know it's legal, but effectively I'm dodging a good heap of tax for 3 years, and most of that is paying others to help more people pay tax. I just don't see the logic in it..

[IanC]

Originally Posted by KobiXR6T

What I don't like is the amount coin that gets moved into the hands of the finance and leasing company. I know it's legal, but effectively I'm dodging a good heap of tax for 3 years, and most of that is paying others to help more people pay tax. I just don't see the logic in it..

The employer likes it because it ties you to the job for the next three years. You can't leave because then you would have to pay the lease off and most people don't have that kind of money lying around. It doesn't stop the employer laying you off though and then you are faced with the lease bill and no income to pay it.