Do cash buyers have any leverage?

kazzamunga

facade said:

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.

Are you saying there's no deal to be struck for second-hand cars at all? Or are you referring to more specific incentives? Most cars I've had were second-hand and they took off at least a few hundred – is that not a thing anymore?

Herzlos

kazzamunga said:

facade said:

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.

Are you saying there's no deal to be struck for second-hand cars at all? Or are you referring to more specific incentives? Most cars I've had were second-hand and they took off at least a few hundred – is that not a thing anymore?

Not really. Back in the day dealers would mark up a car by £1000 to knock £500 off later, but sales were done by someone visiting a dealership and seeing what was on offer. Now people to go Autotrader, put in some details, sort by cheapest and buy the first one they like, so marking up by £1000 means you're now on the 2nd page and no-one visits to knock the £500 off.


There's some haggling possible over the trade-in value if you're trading in, and possibly the chance to get a deal on mats, fuel, servicing or whatever, but you're going to struggle to get any real money off the cars list price.

facade

kazzamunga said:

facade said:

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.

Are you saying there's no deal to be struck for second-hand cars at all? Or are you referring to more specific incentives? Most cars I've had were second-hand and they took off at least a few hundred – is that not a thing anymore?

I'm referring to an "incentive" to buy on finance rather than cash. This was common to shift new cars, but has always been rare on second hand ones.

You do sometimes get novelties like £1000 cashback with second hand, but you are actually borrowing the extra £1000 and paying interest on it.

Goudy

The answers is yes and no.
It depends on who you are dealing with and for what.

Generally a used car will be marked up by around 20% of it's trade price on a dealers forecourt.
Trade prices are worked out on what cars make at the big auctions dotted around the country.
If stock makes high prices at these auctions, used prices rise.

This 20% isn't all dealer profit, they more often than not have overheads, sometimes some expensive ones but you can try to chip into it for a discount.

Now dealers don't just sell cars, they also sell finance and other products (that get rolled into the finance like service plans, warranties and paint protection) and because of this they get commision from the finance companies for doing this.

Another generalisation is that used cars tend to attract high interest rates (which is also true of people least likely to afford finance), so a dealer selling a car with an expensive finance package will get a bigger commission.

With a deal like this you can often get a bigger up front discount or (deposit contribution thoough usually only on new cars) as the dealer will earn that back on commission from the finance company.
This is where the take the deal and settle the finance asap comes in.
The dealer gets his commission, you get the discount but the finance company lose out on nearly all the interest. (they can only charge 2 months interest max).

With a cash deal, these isn't anything in it for the dealer except the mark up on the car and it will be just down to negotiation between you and the dealer.

There are various ways to go about this, but usually just asking for a discount ends in a no or I can't.
It's worth researching these negotiation methods if you really want a discount on a cash deal.

You could also consider a non cash based discount, say getting the dealer to agree on a longer warranty or a service plan might be as benifical as a straight cash discount. 

Krakkkers

When i bought my Ford Focus from a main dealer i got the impression that they did not want cash, they make more from the finance than they do from the car. They want you to take a finance deal.

Galloglass

For those who have not been through a time of high inflation, cash is useless as the items you intend to buy will be increasing in price as they sit there. 

If you have cash, and need to buy, buy now. This is especially true of items with high labour/service content as NLW will rise by 9.7% next April.