no discount for cash on new cars????????

[john.xs]

why is it when we are in supposed credit crunch the garages dont seem keen on discounting for cash.they seem to offer best dicounts for you taking on more credit cards. it sounds daft to me or are they trying to take me for a ride?

[Lemonade Pockets]

???
Doesn't make sense. By credit cards, do you mean some sort of finance package provided by them?

[dzug1]

They make more on the commission on the credit than they do on the car.

[jeannieblue]

If they won't do a deal, you walk out.

Then you call the manufacturer and let them know that the dealership is letting you walk away etc. Recommend you try a few dealerships first before you have a rant!

You are the buyer and you are calling the shots. I am amazed at the way some of them are behaving lately when they have thousands of cars just sitting there. I'd bore you with some sorry tales... but I can't be bothered, I am suffering with new salesman syndrome.... :eek:

[MX5huggy]

As said they make the money on the finance (like double glazing sales men).

I would look at using a broker like drive the deal or similar they can cover alot more ground than you and find the one dealer that needs to shift one more car to meet a target.

I should think at the moment some dealers are so far off their targets that there is no point doing deals.

[vikingaero]

What car are you buying?

[hewhoisnotintheknow]

they want to sell you finance as they make a comission

also i wouldnt want the hastle of the cash, would prefer electronic transfer

[Older but not wiser]

Just bought a new (to me) car, 06 plate Merc C180K, and the salesperson was keen for me to take finance, as it makes them more money - they get a kickback from the finance company.
Stuck to my guns and paid cash (debit card actually),and got a few freebies thrown in as well as money off because they were keen to sell.

Just walk out if the deal isn't right for you, it's a buyers market.

[john.xs]

looking for a new corsa for son whose just past test

[zappahey]

If your credit history is good, it might be worth checking if the finance can be cleared early without penalty. You can then buy the car on finance, which gives the salesman a commission so that he can work a bit more on the price and you're both winners.

Then just clear the finance immediately.

[Hintza]

Probably not making money at all on new cars just now and the old trick of selling close to cost to get volume bonuses I imagine is just a distant memory. I imagine the manufacturers and dealers are busy rying to thrash out out new deals in this new world to try and just shift cars.

However with lack of finance available the cash buyer will hopefully soon become the holy grail of the dealership.

[ArsenalFC]

I assume you have good finances in order to get a brand new 1st car for your son.

It's worth considering 2nd hand private sale for a first car as new drivers tend to have a few scraps here and there.

[alared]

Go online to a site that sells cars to the public such as drivethedeal or autobyte and find out the internet price for a new corsa delivered to your door.
Then go to your local dealer and tell him the price you can get it for and if he doesn`t match it ----------- BUY IT ONLINE.

[vikingaero]

Screw the local dealer. If the salesman wants to talk BS then treat him like BS.

As an example on www.broadspeed.com

New Corsa 1.2 SXi 3dr List £10726 Online £9185

[flea72]

what benefit is there in paying with cash? perhaps if you can give a reason, why cash makes for a better deal, then by all means, you should get a discount. But money is money, no matter what form it comes in

and as for saying they get commission on finance, is the reason they wont discount for cash, is complete nonsense. If your moneys green enough, they will take it, just dont expect an extra discount

But due to the nature of business lately, yes some dealerships do discourage payment in cash, due to possible money laundering, and the fact paying by card is safer and easier for both parties

Flea

[Hintza]

I think you are all taking the word "cash" too literally.

[Lemonade Pockets]

+1
Cash sale to a dealership is any sale that isn't using their finance.

[Premier]

-1

How many car dealerships do you know that issue credit cards? :confused:


The reason dealershios offer no discount for cash (in the literal sense) is probably because it's a pain in the rear end to them. There's the effort to count it out correctly, the fact that each note will need to be checked to ensure it is not counterfeit, the security issues involved in handling it, the problems assciated with money laundering regulations and the hefty charge their bank will make to bank cash - 8% is not uncommon.
Credit cards may charge 4-5%, debit cards much less.
If you take out finance with the dealer, they'll earn commission on that too.

[Lemonade Pockets]

that was my original question. But i think has since been decreed that the op meant credit cards as in finance.

I'd be surprised if your comments about pound notes were true. The dealerships that i worked for never worked on that basis. The only reason "cash" customers are discriminated against is simply because finance earns the dealership more, therefore finance pen is the key KPI for most dealerships/networks.