Buying a Car straight out with cash

noobie

OK two questions. I'm hoping to buy my first new car soon and my parents were going to buy the car then I would pay them off, instead of using other finance and paying hefty interest, so:

1) Obviously you don't walk in with an envelope full of money, so whats the deal, does a cheque suffice? When do you hand the cheque over (i.e. does it need time to clear before they accept it).

2) Do you use this as an extra bargaining tool? i.e. negiotiate the price for the car and then say i'm willing to pay in cash/straight out any chance of throwing in more free goodies?

stacey21_2

You could pay easily with a debit card. If the garage offer a credit facility they usually get commission from this so may not be much use offering to pay cash.

Dave_Brooker

noobie wrote: »

OK two questions. I'm hoping to buy my first new car soon and my parents were going to buy the car then I would pay them off, instead of using other finance and paying hefty interest, so:

1) Obviously you don't walk in with an envelope full of money, so whats the deal, does a cheque suffice? When do you hand the cheque over (i.e. does it need time to clear before they accept it).

2) Do you use this as an extra bargaining tool? i.e. negiotiate the price for the car and then say i'm willing to pay in cash/straight out any chance of throwing in more free goodies?

These days alot of car dealers earn more from the finance than they do from the cars, so the days of "how much for cash?" are numbered.

But that said if they think you've got the reddies, they'll do a deal as you're a proper man, not just a dreamer...

Gold_Shogun

noobie wrote: »

OK two questions. I'm hoping to buy my first new car soon and my parents were going to buy the car then I would pay them off, instead of using other finance and paying hefty interest, so:

1) Obviously you don't walk in with an envelope full of money, so whats the deal, does a cheque suffice? When do you hand the cheque over (i.e. does it need time to clear before they accept it).

2) Do you use this as an extra bargaining tool? i.e. negiotiate the price for the car and then say i'm willing to pay in cash/straight out any chance of throwing in more free goodies?

1) ... A Cheque WILL need time to clear before the car is collected.

2) ... TIP = DON'T mention a "CASH Purchase" AT ALL during negotiations UNTIL the "Final Purchase Figures" are written down in detail ...
The SalesDept have "more discount flexibility" on Haggling the Vehicle Price when they THINK they can offset some of the discount against the commission they will earn from the Finance/HP ... So "act as though" you would/might be using one of their finance deals AND haggle hard on the "Base Figures PLUS As many Free-Extras/Goodies as you can grab" (Ignoring the likely outrageous interest charges quoted), THEN change your mind & decide to simply pay Cash instead once the Price has been agreed.

3) ... TIP = Further to (2) --> If you're upto the "Kick 'em in the Goolies" challenge, Decide to pay by Credit Card instead, then change your mind again & ask for a further 2% "Cash reduction" (as you will therefore be saving the Seller around 3-4.5% in CC commission).

4) ... TIP - Pay AT LEAST £100.00 of the total invoice by YOUR "Personal & Primary" Credit Card anyway (and happily pay a couple of quid CC surcharge if needed) ...
REASON --> This gives you the EXTRA Guarantee & peace of mind & protection of "Section 74 of the Consumer Credit Act 1974", which renders the Credit Card Company EQUALLY liable (to the Supplying garage) for the WHOLE PURCHASE for purchases between £100 and £30,000.
This means that you can Legally use/force the CC company as a "BIG HAMMER" against the garage IF you have any subsequent problems with the Manufacturer OR Selling-Garage during the Warranty Period.

louidog

A discount for cash depends on what make and model you are buying. If there is a new model due on the market and even what time of the car buying year you are looking at purchasing the car. If you don't mind the "old model" which of course it won't be old it will just not be the newer model (to be honest, don't buy a new model as they normally have lots of faults on them still to be ironed out!) then go for it....there are always cars sitting about waiting to be purchased. Oh and don't forget to shop about the different dealerships...even for the same model they will offer different incentives to get your hard earned cash!

Always ask....they can only say yes or no

As has already been said they may be more up for doing a deal if you take finance....ask about the costs etc and how much paying up the loan will cost you and then consider taking out the loan and then paying it back instantly! Everyone is happy then

Did any of that make sense? My mind goes faster than my fingers and I understood every bit of it!

hearts

I am buying a car now this way. Went to Arnold Clark and couldnt budge them on the price. They accept Switch. Then went to Motorpoint, again no movement on price. They accept Bankers Draft.
This is on a car costing 7k. Not bought one yet cos I felt they weren't trying hard enough to get my business. Had either made some gesture then they would have had a sale. ;-)

jonnypb

depends on the garage, i drove my car away after giving them a cheque and it hadn't even cleared. some will insist the money is in their bank 1st

xycom1

When I bought my last car (about £4000+trade in of my old car), I just walked in with cash and paid.

ISTR reading that nowhere should be accepting more than £8000 in cash at once though because of money laundering regulations or something?

Presenting a bankers draft will let you drive away same day - like someone else said, a garage will want to see your cheque clearing before handing you the keys. Equally, many places will accept Switch payments.