Paying cash for a used car, how much of a discount?

[Chubby]

Well I'm going to end up with about $10,400 cash after I get my deductible back (tax will pay off the balance of my finance) and I'm looking to buy a Certified Honda from a dealership so i was wondering what sort of discount do you usually get off of sticker price if you are paying cash up front? We have some extra money so if the car is $12,500 or whatever we'll still be paying cash for it.

I know if varies from dealership to dealership a little but just curious as to what a "good deal" would be.

[B & B]

5-10%


Better question is, where is this "extra money" and how can I acquire some?

[Chubby]

5-10%


Better question is, where is this "extra money" and how can I acquire some?

Bank of Mom :)

[Yossarian]

Our local car dealership prefer you NOT to pay cash because they get interest on alternative methods...

[Logan]

Yeah, it really depends. I don't have experience with it, but from what I've read they have more incentive to push you towards their own financing arms.

[albionmoonlight]

One thing that you could do it get him to agree to a price while implying (but never saying) that you will finance with them.

Then, after he commits to a price, pull out the checkbook.

Sometimes, I hear, they will lower the price if they think that they can make it back on the financing.

[Chubby]

One thing that you could do it get him to agree to a price while implying (but never saying) that you will finance with them.

Then, after he commits to a price, pull out the checkbook.

Sometimes, I hear, they will lower the price if they think that they can make it back on the financing.


that's a good idea too.

We have found ONE comparable car to mine and we're looking at it on Thursday. It used to belong to a salesman's wife of the dealership but she died (not in the car) hence it's an '03 with 32k

[stevew]

If there's no pre-payment penalty on the financing, you could definitely go that route, get the best deal you can, and then pay it off next week. I don't think you really get much of any benefit anymore from paying cash for anything. I'm sure Swaggs or someone else who has sold cars might have an even better idea.

[Chubby]

If there's no pre-payment penalty on the financing, you could definitely go that route, get the best deal you can, and then pay it off next week. I don't think you really get much of any benefit anymore from paying cash for anything. I'm sure Swaggs or someone else who has sold cars might have an even better idea.

Maybe not, I've never been in this position.

[Swaggs]

I would say that it will have minimal to zero impact.

If they know that you have means to pay $xx, they will try to get $xx out of you. I would just go in and tell them you are interested in their out the door price, so they don't try to sell you on a monthly payment. If they ask about financing or to run a credit check, tell them that your credit is fine, that we can get to the financing once we get an agreed price, and get back to working on the out the door price.

I would tell them that you are looking for something in the $10K-range. I'd check autotrader and craigslist, as well. You can run a carfax yourself for pretty cheaply (I think you can order a monthly subscription) and avoid the hassle of the dealership. Hondas are very reliable, so unless the car you are looking at has been in a bad accident, you have little to worry about.

Also, avoid an extended warranty on a Honda. You'll be better off sticking the money spent on a warranty in an interest-bearing account, because odds are you won't need it.

[st.cronin]

Through a dealership, zero.

[MacroGuru]

Most used car dealers are marking their cars up 33% you might get a wiggle room of 5 - 15% on the cash now scenario, dependent upon the dealer, my wife use to work for the Flooring company that gave most of the dealers their money to buy cars from the Auctions, after talking with them, they all said cash was king, it paid their bills off immediately for them, so they were happy that way.

Because of that, we got our mini-van $500 above the price they paid....

[Chubby]

I would say that it will have minimal to zero impact.

If they know that you have means to pay $xx, they will try to get $xx out of you. I would just go in and tell them you are interested in their out the door price, so they don't try to sell you on a monthly payment. If they ask about financing or to run a credit check, tell them that your credit is fine, that we can get to the financing once we get an agreed price, and get back to working on the out the door price.

I would tell them that you are looking for something in the $10K-range. I'd check autotrader and craigslist, as well. You can run a carfax yourself for pretty cheaply (I think you can order a monthly subscription) and avoid the hassle of the dealership. Hondas are very reliable, so unless the car you are looking at has been in a bad accident, you have little to worry about.

Also, avoid an extended warranty on a Honda. You'll be better off sticking the money spent on a warranty in an interest-bearing account, because odds are you won't need it.

Well the Civic I'm looking at is certfied (last two cars have been Civics). I'd certainly look at non-Certified if I could find them within a 300 mile radius :mad: So it does have a 7year, 100k Powertrain on it.

I don't really think the price is bad considering it's a Certified EX ($13,990) and is an '03 with 31K on it. Gotta be an EX cause I like my sunroof.

Auto trader I've checked but I will still look at craigs list.