I hate dealing with car dealers. I have a set total amount limit in mind and I am ready to walk if they want to play too many games. I have $5000 in my checking account earmarked for purchase down payment. I've got no problem handling it as cash, but is that the best medium? Would they reject a personal check or accept it with a waiting period? Would a cashier or certified check be more favorable to them?

Cash or personal check would allow me more negotiating leeway I think, not being locked into a set amount.

Any tips or insights are appreciated.

I bought a car in May with some cash, and a check to make up the difference. So, I'd say whichever you want.

You don’t need to say anything about a down payment until after the deal is done with the lot lizard and you are in with the finance guy. They always take checks, in my experience.

I found it makes no difference the final price is the final price.
I bought our Sienna paid in full with a personal check never mentioned the check just stated I would not be financing.
We agreed on the price and I then asked who I make the check out to.
When we bought our Highlander I had 10k cash as a down payment and financing for the rest was already secured with my credit union. They did not know that until after we agreed on the deal.

I research the snot out of the purchase know what I will pay. I tell them what I will pay out the door and I don’t play games they give a yes or no.
They say no or give a higher amount I leave.

If they want to sell they’ll call.

quote:

Originally posted by PowerSurge:
You don’t need to say anything about a down payment until after the deal is done with the lot lizard and you are in with the finance guy. They always take checks, in my experience.

This.

For that amount, they'll usually take a credit card. Once you start trying to put the whole Bentley on the Amex it's an issue, but IME $5K won't even raise an eyebrow.

Bring your own financing. Whatever rate you've gotten online or at a bank, they will probably beat.

Negotiate the price you want, don't mention the cash down at all at that point as there's no reason to. Best bet is to arrange for your own financing and go into the finance box with the check from the finance company of your choice along with a certified check for the downpayment. This will make it very hard for the finance guy to part that $5,000 from you by selling you a ton of aftermarket protection products you don't need. While some stores will take a credit card for the DP, many will not due to the fees they have to pay and the fact that most borrowers would reject the finance contract if they learned the DP came via a credit card (basically borrowing the DP). I know it happens every day, I'm just explaining how a finance company looks at it.

In my limited experience they don't worry about a check especially if you are local, I have asked, there was no waiting period. Once I was asked to bring a cashiers check when buying 400 miles from home and my bank didn’t have a presence in their state. They have your credit report and your check. If the check is bad and you don’t make it good pronto they just repo the car. I also bought a new car with a credit card once. Finance officer said “If you are crazy enough to do it I’m crazy enough to take it”. All they worry about it seems is your signature on the bottom line.

By the way...
My daughter now works in the legal department at a bank and worked years in collections before her promotion.

Now as to how best to negotiate a deal... I don’t know, hate doing that part.

I bought my last car with a personal check and trade. Bought the vehicle on a Saturday night and the bank was closed so they could not verify the funds, so i was expecting not to be able to take possession of the vehicle. I was wrong, dealership didnt even blink an eye handing me the keys.

I’ve always written a personal check whether for DP or PIF.

Thanks everybody! This is good stuff, I'm taking notes.

quote:

Originally posted by Georgeair:
[QUOTE]Originally posted by PowerSurge:


Bring your own financing. Whatever rate you've gotten online or at a bank, they will probably beat.

I have 2 credit unions I shop before buying a car. Once the final price is met on the vehicle I let the dealer know my interest rate.
5 cars now dealer has never been close but I always let them try.

quote:

Originally posted by Black92LX:
I found it makes no difference the final price is the final price.
I bought our Sienna paid in full with a personal check never mentioned the check just stated I would not be financing.
We agreed on the price and I then asked who I make the check out to.
When we bought our Highlander I had 10k cash as a down payment and financing for the rest was already secured with my credit union. They did not know that until after we agreed on the deal.

I research the snot out of the purchase know what I will pay. I tell them what I will pay out the door and I don’t play games they give a yes or no.
They say no or give a higher amount I leave.

If they want to sell they’ll call.

This right here. Solid advice. Usually the dealership will use the credit union of my choice. As Black said, I choose the credit union, and get pre-approved. The dealership gets about $500 for doing the paperwork and choosing that credit union. I just ask for half that from the F&I manager. They have never said no. It’s either they get half of $500, or none.

Use a check, or credit card for the down payment as you wish, but not currency.
Reason being, the first two you won't lose. Credit card gives you a bit of time to pay (and maybe some rewards/rebates) so try that first, assuming you will then pay off the entire amount on the next credit card bill. If the dealer doesn't add any extra fees for using the CC for the down payment, you're good. If they try to put on fees, then just whip out the checkbook.

The reason they don't care cash-vs-check is that they know where you live and they have a lien on the vehicle. If the bill doesn't get paid, "Repo Man" isn't just a movie title.

My wife just bought a new car for herself. She had been making monthly "car payments" into a money market account for several years, so when she was ready to buy the car she had the funds.

The dealer that she bought from accepts up to $5,000.00 on a credit card, so she used a cash-back card and got 1.5% back. She wrote a personal check for the remainder of the car purchase and paid the $5,000.00 credit card balance a couple of days before the due date the following month.

I have always wanted to open an attache case full of cash, like a a drug dealer in the movies, but that was just an amusing fantasy.

Just write a check. Don’t mention the down payment, any financing, nothing, as has been said. Negotiate the car + TTL. No bs add ons, no extras, be extremely blunt, price of vehicle + TTL. When the car deal is agreed upon, then in the finance office you can let them know you’ll be writing a 5k check for down payment.

You’re already ahead of most as you are ready to walk. I just bought a new truck this past weekend and it took the stealer 2 months to agree to my terms. I did not budge an inch. Patience wins out every time. I got private party “excellent” pricing for my trade (no small feat), and got the Honda for 2k under invoice which is also an excellent price as they don’t deal like the domestics do as they don’t depreciate like the domestics do.

Be prepared to walk always, and have patience. Patience always wins out in car deals. Once you know your price, do not deviate an inch. The dealer I just got working with kept following up every week and I didn’t budge or flinch. I also had financing preapproved through my credit union. Best of luck. If you see the squares brought out on paper just get up and leave.

Oh and don’t buy anything additional at the stealer. If it’s a new vehicle and you want an extended warranty you’ve got 3 years bumper to bumper in effect so you have 3 years to buy an extended warranty and you can buy it from any dealer in the United States. Extended warranty is tied to the VIN and absolutely does not have to be purchased at the time of sale.

On your part there is no "presentation" of down payment which increases your bargaining position.

Neither does having a trade-in. Those two factors benefit the seller, as they lower the amount you are "paying for" the vehicle. The salesperson will focus on your "payments" as what the vehicle costs, disregarding what you pay "today" in down payment and trade-in.

The offering of financing from the dealership does, however, increase their bargaining position if you need or are expecting financing.

Taking cash is more of a hassle for the dealership. No owner wants his minimum wage lackeys to know there is five or ten grand in cash sitting in a cabinet behind a flimsy door. Checks go through a clearinghouse for verification. When the dealership accepts your check, a 3rd party has guaranteed that check to the dealership. My last purchase consisted of $5,000 cash, which the owner was not thrilled to have, even cautioning me not to "wave that money around". And a large check, which was verified in about four minutes.

A good negotiating practice is to visit the same dealership 2-3 times, ask the same questions, and verify everything they say regarding model, options, and price. By the third visit the owner should recognize you and walk out personally to see why you have not yet bought.

It always comes down to price. He/she will say, "If I work up a price which comes in at what you will spend for this vehicle, can we close the deal right now?" Have a number in mind, knock 8% off of it, and think hard of that number.

Do not be surprised if the owner comes in $300 under your number. And be ready to close the deal, as you agreed to do, even if the agreement was only in your own mind.

quote:

If you see the squares brought out on paper just get up and leave.

I sold Fords back in my misspent yute. I used the "Four Square" method all the time. It's amazing what people will fall for.

quote:

Originally posted by Rev. A. J. Forsyth:

quote:

If you see the squares brought out on paper just get up and leave.

I sold Fords back in my misspent yute. I used the "Four Square" method all the time. It's amazing what people will fall for.

It’s even more amazing that there are people that are so dishonest to be car salespeople. Dealerships are corrupt top to bottom. The only honest people there are in parts and the mechanics. And even some of the mechanics are dishonest with what services a car actually needs at the time. Willing participants with service writers/managers in drumming up more work that is not needed.

quote:

It’s even more amazing that there are people that are so dishonest to be car salespeople.

I was 19 and needed a job. Dealership employees are under tremendous pressure to produce. If you don't produce, you don't eat. It's definitely not moral or right, but that's how it is. The only people that came close to getting it right was Saturn. Here is our price, buy it or don't.

It is absolutely reprehensible that vehicle purchasers that are cash only / paid in full are viewed as a pain by the dealerships. My last two vehicles purchases each took about 6-8 weeks.

I hit the lot and look at what I might like and note a vehicle or two that fit the bill. Then, I write down a number and my phone number and give it to the sales person. My instructions are straight forward. "This is what I'm willing to pay period. When the sales manager is ready to accept this call me. But - you only have 3 phone calls to accomplish that. After that I won't do business with you or accept phone calls."

I've walked on more cars than I've bought. Not being emotionally attached to the deal is the key.

My last one was great... Got a Cashiers check from the Bank for the price I was willing to pay. Drop it on the desk of the salesperson with a copy of the vehicle invoice. Told him I'll be there 20 min max for the sales manager to accept the sale.

He came back to counter offer. I grabbed my check and walked out. The next day, the vehicle was delivered to me at home and the deal was completed for the exact amount on that check.

Andrew