When it comes to buying a car, cash speaks volumes. Although, there are speculations on how cash buyers are treated at the dealership since salespeople usually get kickbacks on financing deals and additional insurance costs. But at the end of the day the cash holder controls how the deal goes, and doesn’t need to worry about monthly payments. In this article, we’ll take a look at some of the advantages of being a cash buyer on a new or used car and even some of the ways a customer can buy a car with cash in the first place.
So how are buyers treated at the dealership when they’re paying cash? First of all, cash buyers trump the financing conversation, which can potentially be a good or a bad thing. Most of the time, salespeople will negotiate the sale price of a car or truck because the dealership also makes money on financing and insurance. When a buyer makes it known up front that it’s going to be a cash deal, a salesperson might skip the luxuries of negotiation and set a fixed sale price for the car or truck for the entire conversation. For buyers interested in getting the best deal, they might want to wait to announce it will be a cash deal until the very last minute, while buyers not interested in negotiating the sale price can get in and out of a dealership quickly.
There is another perk to being a cash buyer. Dealerships often search for quick turnaround customers to move inventory off the lot. Especially this time of year when dealerships are trying to make room for new inventory, salespeople will be on the lookout for customers ready to buy a car with cash. When a buyer has cash in hand, typically they aren’t in the mood to negotiate too long, and would rather pay up front and start driving their new rides the same day.
So what are some tips for people interested in paying with cash? Aside from inheriting or receiving a large sum of money, it takes patience and conscious saving to become a cash buyer. Customers often set money aside each month to save up for the purchase of a car; how much they set aside depends on how soon they want to purchase. For some buyers, if saving for a new car is more important to them than other amenities in their lives, it doesn’t take long to save enough money to buy a car or truck they have in mind. Most cash buyers also consider a number of different vehicles and price tags before even stepping foot on the dealership lot. This usually involves older models, used vehicles, or purchasing from private sellers. It is much easier to buy a used car with cash.
Customers in the position to buy a car with cash must be doing something right. Whether it’s due to an inheritance or smart money saving, a cash buyer is in a great position to drive away with a good deal. Just remember to always negotiate for the best deal possible and be willing to walk away in case the deal isn’t satisfactory.