View Full Version : Can anyone school me on buying a new car in cash?
Rento_VW
12-13-2007, 10:47 PM
I know.. I been making weird threads on cars lately.. I just want to know one last thing, or a few. That is the subject on paying for a car in cash.
I asked my mother this question since she works at a car dealer and is a salesperson, however, she doesn't like the question and didn't give me enough info.
Apparently the dealer would hate it since they would lose money off financing, so on and so fourth. So, with that said, you wouldn't even bring up paying in cash to start off w/ till you're ready.
Say, for example, I wanted to walk into Symbolic Motosport of La Jolla, or Lotus of Beverly Hills and wanted to buy a Lotus Exige S for cash. The MSRP on one at the Lotus of USA website lists them at $59,890.
However, they did not have a Lotus Exige S on the lot that I wanted so I ordered:
- Lotus Exige S ($59,890)
- Aubergine Purple ($590)
- Lotus Traction Control ($495)
- Starshield ($995)
The total will come out to about $61,970. So, if you wanted to pay for one in cash, is this what you would pay? Or would there be other fees?
What if there was a car on the lot equipped like this? Would it be cheaper that ordering on built? Or would just be the same?
I'm just looking this info up for a friend. Thanks guys.
RavinJetta
12-13-2007, 11:26 PM
Don't forget tax and license. That will add a chunk of change on to that. Also I prefer to not talk about how I am paying until I have the price locked down.
Rento_VW
12-13-2007, 11:40 PM
Well yeah, of-course about the choice of payment... What if you bought the car in another state... Ah.. California would probably tax you even more.. dang. So the Tax and license is determined at the DMV or dealer?
Well yeah, of-course about the choice of payment... What if you bought the car in another state... Ah.. California would probably tax you even more.. dang. So the Tax and license is determined at the DMV or dealer?
not sure about this, smog and license.... prolly those two you wanna added on ur check list as well if you want to have cali plate . since Cali is so hard on smogies. :)
RavinJetta
12-14-2007, 09:00 AM
Well yeah, of-course about the choice of payment... What if you bought the car in another state... Ah.. California would probably tax you even more.. dang. So the Tax and license is determined at the DMV or dealer?
Tax and license is added right at the dealer.
Nefarious
12-14-2007, 09:24 AM
There are no added fees for paying cash. Just go in, agree on a price and then pay cash. Don't mention payment method until the price is agreed upon in writing.
madajb
12-14-2007, 09:50 AM
How you pay is mostly irrelevant.
Agree on a price, then deliver that price in legal tender and you should be fine. If the dealer loses out because they thought they could talk you into a bad financing deal, well, that's their problem.
If the dealer is giving you a hard time about financing, and for some reason you prefer not to mention cash, then just say you've arranged financing outside of the dealer (bank loan or whatever) and leave it at that.
_However_, some dealerships will not accept cash for a large amount. The last dealership I dealt with had a policy of accepting no more than $10k in cash.
So, if you haven't inquired before as to their policy, you may find yourself running down to the bank for a cashier's check before you get the keys.
-ajb
TOYr32
12-14-2007, 09:51 AM
It is harder to buy in oher states because you have to be a resident of that stae right?
My neighbor paid cash for his corvette and durango. Well, wrote a check, but either way. You play the game just like you would if you were gonna finance. Dealers only make money if you finance through them. If you end up financing through a different back, they may get a kickback, they may not, so it doesn't matter.
A sale is a sale, and if you have the cash and everything is Kosher, then they'll draw up the paperwork and you'll be leaving with a new car. Lots of people have been paying cash lately for cars because of refinancing (before the housing slump).
Nothing changes when you buy a car cash versus credit. Taxes, everything is the same. You may actually get a bit of a break cause not the dealer doesn't have to do any finance paperwork, but probably not. The only thing that is different is there will be no further payments.
Paying > 10k in hard currency for anything requires that the transaction be reported to the FBI. It's a money laundering thing.
bringing cars from out of state you still pay taxes on when you register.
Dealers only make money if you finance through them. If you end up financing through a different back, they may get a kickback, they may not, so it doesn't matter.
This isn't true really.
For example. American manufacturers and dealers will sell cars at below purchase price. Invoice = dealer purchase price. Why would they sell below invoice? Because the manufacturer still has dealer incentives for selling the car. They may get $1000 from the manu regardless of the selling price.
Financing incentives is one way for the dealership to make money but it isn't the only way.
Take a european car for example. They sell it at full price, since well that's what a lot of them go for. Selling price - invoice price - commission = Dealer profit.
Add in any options and the dealer is making even more on "labor" for installing said options. Also if the dealership sells you an extended warranty, they get a kick back from that company.
Tons of ways to make money, the biggest one is labor for maintenance/repairs.
Most european dealerships are already close to or over $100/hr. $90/diagnostic, etc. They make a ton of money on parts and service.
madajb
12-14-2007, 11:25 AM
Paying > 10k in hard currency for anything requires that the transaction be reported to the FBI. It's a money laundering thing.
As far as I know, CTR rules only apply to financial institutions.
The only other $10k trigger I know about is the "financial instruments" question on a customs form.
If you know differently, please reference.
-ajb
MikekiM
12-14-2007, 11:52 AM
Most dealership actually won't take CASH of more than around $2k to $5k. The balance has to be in the form of a check or money order. I know this was the case with both Hoehn and Miramar.
Sorry it wasn't FBI, IRS DUH.
http://www.irs.gov/businesses/small/article/0,,id=159755,00.html
madajb
12-14-2007, 01:02 PM
Sorry it wasn't FBI, IRS DUH.
http://www.irs.gov/businesses/small/article/0,,id=159755,00.html
Interesting. I didn't know about that one.
Though, I've never done anything where I was paid that much cash, so hopefully the accountant would have pointed it out if it came up. heh.
-ajb
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