Do cash buyers have any leverage?

Bigwheels1111

Cash is good, but might get a deal for finance, Take it out get car and pay off the same day.
14 day cooling off period, no fees or interest. Mate did it on new Mercedes.
Car delivered on transporter, Signed for it. Went indoors and paid it off within 10 minutes.

GDB2222

Bigwheels1111 said:

Cash is good, but might get a deal for finance, Take it out get car and pay off the same day.
14 day cooling off period, no fees or interest. Mate did it on new Mercedes.
Car delivered on transporter, Signed for it. Went indoors and paid it off within 10 minutes.

I really didn’t realise that you could do that!

user1977

Richard53 said:
Cash meaning money transferred today, as opposed to finance, I suppose. 

Yes, that's what is generally meant when people are discussing "cash" versus having to borrow. "Cash buyers" for a house don't turn up with a suitcase full of tenners...

Flight3287462

OP if I was selling a car for £11,000 and offered you a £1k discount would that be a good deal?

What if I was selling a similar car for £10,000 and offered you a tank of fuel?  Which is the better deal.

My point being keep researching the prices so you know what is a good price and what isn't then you know if you need to haggle or not (you always have to try though ).

facade

GDB2222 said:

Bigwheels1111 said:

Cash is good, but might get a deal for finance, Take it out get car and pay off the same day.
14 day cooling off period, no fees or interest. Mate did it on new Mercedes.
Car delivered on transporter, Signed for it. Went indoors and paid it off within 10 minutes.

I really didn’t realise that you could do that!

It is Bad Form, because various people are down on the deal with admin costs and the actual "incentive".

However, if you do "the decent thing" and wait until the 14 days are over, they sting you for 2 months interest, as they have to try and get something back, see this current thread https://forums.moneysavingexpert.com/discussion/6403726/pcp-calculations-early-settlement/p1

2 months interest may still be a lot less than the incentive, so you still win though.

(I don't know why they still don't have it in the contract of sale that the "incentive" is repayable if you cancel within the 14 days- maybe they can't do it)

kazzamunga

[Deleted User] said:

kazzamunga said:

DanDare999 said:

MikeJXE said:

If the cash is in your hand when you go to buy you have more chance of achieving a deal.  I would have thought so anyway although a dealer may make more with HP on the car. As far as credit payment is concerned a dealer must have to pay a percentage to the bank. Cash is still king. 

 Not if you're buying from a dealer, they'll make a bigger percentage on finance and extras than they will on the car. 

It's still easy money that they wouldn't turn away if they can make 10k in one go though, isn't it? Rather than part exchange and a grand's deposit and then 4 years worth of finance?

There is a shortage of cars, they need to maximize profit.

One option is to take out finance to get a better deal, and then pay it off after a month or two. Be aware that it will affect your credit status if you are planning on borrowing money soon, at least for the short term.

Isn't there also the risk of getting penalised for paying it off early?

kazzamunga

facade said:

GDB2222 said:

Bigwheels1111 said:

Cash is good, but might get a deal for finance, Take it out get car and pay off the same day.
14 day cooling off period, no fees or interest. Mate did it on new Mercedes.
Car delivered on transporter, Signed for it. Went indoors and paid it off within 10 minutes.

I really didn’t realise that you could do that!

It is Bad Form, because various people are down on the deal with admin costs and the actual "incentive".

However, if you do "the decent thing" and wait until the 14 days are over, they sting you for 2 months interest, as they have to try and get something back, see this current thread https://forums.moneysavingexpert.com/discussion/6403726/pcp-calculations-early-settlement/p1

2 months interest may still be a lot less than the incentive, so you still win though.

(I don't know why they still don't have it in the contract of sale that the "incentive" is repayable if you cancel within the 14 days- maybe they can't do it)

I did read somewhere that if you do that, you're effectively cancelling the finance deal, so that you also forfeit the warranty and things like that? Is that definitely not the case?

kazzamunga

user1977 said:

Richard53 said:
Cash meaning money transferred today, as opposed to finance, I suppose. 

Yes, that's what is generally meant when people are discussing "cash" versus having to borrow. "Cash buyers" for a house don't turn up with a suitcase full of tenners...

Yes I wasn't going to do a Phil Mitchell and turn up with a brown envelope inside my jacket, haha.

kazzamunga

Flight3287462 said:

OP if I was selling a car for £11,000 and offered you a £1k discount would that be a good deal?

What if I was selling a similar car for £10,000 and offered you a tank of fuel?  Which is the better deal.

My point being keep researching the prices so you know what is a good price and what isn't then you know if you need to haggle or not (you always have to try though ).

Yeah I was thinking of just printing out the Parker's valuation for that reg (which is based on higher mileage than the car I'm interested in, but I've also tried putting in different mileages for the same model to see how they calculate it, and it seems like every 10,000 miles is worth around £450. So if a valulation is based on 40,000 miles and the car has only done 25,000 miles, add on £675 to the valuation. Currently the top dealer price + £675 is still a bit lower than what they're asking for, so hopefully that's a starting point for negotiating some kind of deal without having to get into finance deals...

facade

kazzamunga said:

facade said:

GDB2222 said:

Bigwheels1111 said:

Cash is good, but might get a deal for finance, Take it out get car and pay off the same day.
14 day cooling off period, no fees or interest. Mate did it on new Mercedes.
Car delivered on transporter, Signed for it. Went indoors and paid it off within 10 minutes.

I really didn’t realise that you could do that!

It is Bad Form, because various people are down on the deal with admin costs and the actual "incentive".

However, if you do "the decent thing" and wait until the 14 days are over, they sting you for 2 months interest, as they have to try and get something back, see this current thread https://forums.moneysavingexpert.com/discussion/6403726/pcp-calculations-early-settlement/p1

2 months interest may still be a lot less than the incentive, so you still win though.

(I don't know why they still don't have it in the contract of sale that the "incentive" is repayable if you cancel within the 14 days- maybe they can't do it)

I did read somewhere that if you do that, you're effectively cancelling the finance deal, so that you also forfeit the warranty and things like that? Is that definitely not the case?

Yes you are cancelling the finance, but any manufacturer warranty, or "warranty" that you have paid for is still valid.

The point is rather moot though, as you won't get "incentives" on second hand cars anyway, so there is little point in buying one on finance with the intention of paying it off within 14 days.