Negotiating Cash purchase for car

RedBern

Hi, We're looking to replace our car with a newer model, have sold our existing car privately, so have cash. My question is, when looking at the asking price at a dealership, what margin is there for driving down the price with a cash purchase? Won't be taking out a loan with them either! Surely it has to be better than part ex?

forgotmyname

Depends on the car and the colour and the condition and the papertrail.

Finance is better for them because they earn money from it.

If you are looking at cars that dont sell well in a poor spec and a horrible colour then you may get a very big discount.

If your looking for a popular car in a good colour and some nice extras you may get very little knocked off as the dealer knows it will sell.

When i bought mine it was a bargain price anyway. So i knew getting anything off the price would be hard. The only haggling i could do was on the price of mine as a part ex.

Normally i would ask for quite a large discount. Start low and work up very very slowly.

motorguy

RedBern wrote: »

Hi, We're looking to replace our car with a newer model, have sold our existing car privately, so have cash. My question is, when looking at the asking price at a dealership, what margin is there for driving down the price with a cash purchase? Won't be taking out a loan with them either! Surely it has to be better than part ex?

Depends on the car and the price its on at. I'd rather have £100 off a car price at £10000 that £1000 off the same car from another dealers at £11000

Also cash sale no trade in means no commission from the finance company and no opportunity for profit on your trade in.

So not a great opportunity for them

RedBern

Thanks for the responses, looking at 2013 Astra 2.0 dcti which is similar to what we have at the moment. I can see they're not going to make anything from the loan deal, or part ex, but thought that a bird in the hand in terms of cash would have been good for the garage.

melbury

When looking at cars for sale online, all the best offers seem to only show PCP and HP prices, some don't even quote a cash pay for it in full now price:mad:

Can't understand what has happened, I remember when cash was king;)

colino

Cash is still king when you buy from a privateer, however with money laundering laws, banks who charge businesses for everything (yes, even depositing cash) and finance companies desperate for customers, cash, in business context, is a nuisance.

Nodding_Donkey

Remember that if the finance deal has a cooling off period you could agree to it to get a discount then settle it within the 14 days (or whatever it is)