Car buying negotiation

[Anonymous]

We have never done this before and will be buying a car soon. We have enough to pay in cash (and would like to unless interest rates are ultra low) but I understand that cash purchases are a negative to dealerships so we should keep our lips zipped on that until the last possible minute. With that in mind, a couple questions...
-Who do we negotiate the out-the-door price with - the salesperson or the financing department?
-At what point do we reveal that we will actually be buying in cash while avoiding being penalized/paying more for that? Any tips for playing along to ensure that we don't get screwed here?

[Anonymous]

Salesperson. You want the otd price. No add one. Finance set will try to add on. You say no no no. Then write the check.

[Anonymous]

Take the financing and then just pay it all off right away.

[Anonymous]

We have always emailed several dealerships asking them for an out the door price for the exact car we want and informing them we are paying in cash. They want to know from the beginning how you will pay. You don’t get screwed and we keep back and forth to a minimum. It’s a pretty easy transaction.

[Anonymous]

Don’t ever tell the sales person you are paying cash. They will want to know what you. And afford per month. Most people are stupid and fall for this. You want the cheapest price for the car you want.

[Anonymous]

I’ve hedged when asked how we’ll pay (plan was cash) and said something like “we are considering our options and it’ll depend on the price.”

[Anonymous]

Anonymous wrote:We have always emailed several dealerships asking them for an out the door price for the exact car we want and informing them we are paying in cash. They want to know from the beginning how you will pay. You don’t get screwed and we keep back and forth to a minimum. It’s a pretty easy transaction.

Are u buying brand new?
With used cars there are so many variables I don’t see any giving you a set price easily. Other than Carmax

[Anonymous]

They’re gonna ask u about trading in your car too. So if they feel like they’ve given you a deal on the new car, they will lowball you on your trade in…… go to Carmax first if you have the time and get a 7 day trade in price from them. That gives you negotiating power AFTER you’ve agreed on the purchase price of the new car.

[Anonymous]

They are so rude! One salesperson chastised me, a 40-year old grown up, for not buying the car he showed me. No, you don't get to bully your way into a car sale.

[Anonymous]

Tell them you will use your own financing unless the dealer can beat it. Gives them incentive to quote a good rate. You can always reveal later that "your financing" = cash if you want.

Generally, if you can get 0-2% promo rate, do that. Its free or nearly free money. Keep your money in the index fund or whatever.

[Anonymous]

Note: if you want the dealer to find/provide financing or get you a quote on financing, you will have to provide info for the credit check. Otherwise, if you are 100% NOT using their financing you do not need to consent to a credit check, but they will try to tell you otherwise!!

I think if you are paying cash (as in $100 bills etc) then you also may need to provide certain info for anti money laundering efforts and such.

[Anonymous]

Do NOT buy any extras that the dealer finance person offers.

Also, consider getting offers on the internet from other dealers.

[Anonymous]

Anonymous wrote:We have never done this before and will be buying a car soon. We have enough to pay in cash (and would like to unless interest rates are ultra low) but I understand that cash purchases are a negative to dealerships so we should keep our lips zipped on that until the last possible minute. With that in mind, a couple questions...
-Who do we negotiate the out-the-door price with - the salesperson or the financing department?
-At what point do we reveal that we will actually be buying in cash while avoiding being penalized/paying more for that? Any tips for playing along to ensure that we don't get screwed here?

Are you buying a new car ?

Which brand & model ?

There are services that provide actual sales prices for the exact make & model of new cars in your area. Might be Consumer Reports or a similar service.

I asked for specifics because we recently bought two new cars (when supply was low) and did thorough research on many makes & models before buying.

Consumer Reports has a helpful magazine for sale which lists all new cars and past problems with each model.

[Anonymous]

Anonymous wrote:Do NOT buy any extras that the dealer finance person offers.

Also, consider getting offers on the internet from other dealers.

+1. Ourisman Rockville tried to charge me $500 for nitrogen in the tires. You can get that for much much less elsewhere. There were a few other bogus “add-ons” too.

[Anonymous]

Just bought a car last week for 0%. Put the money from selling old car into the bank.