So I am ready to pick up a new SUV.  Have narrowed the search down and know what model I want, color, options, etc.  new 2013 Xterra leftover for those that must know.  I know it's not GD's precious wrangler but it is what we want so go flame at a 13er.

Is there any deals to be had paying cash?  I have done a lot of research online but have found nothing current.  I know the dealerships have like 87 different lenders lined up to get anybody credit, so they are getting paid either way.  Does the cash thing only work with small mom and pop dealerships?  I know arfcom has some serious ballers so please school me on the subject.

All the dealerships by me are large, multi state dealerships.

The numbers:

MSRP: $27,745

Factory Invoice: $26,590

Truecar Average Price Paid: $26,569

Truecar Estimated Dealer Price in my Location: $23,890

We will also be trading in a 2003 Grand Cherokee with KBB Trade In Value of $3,700.  I would be happy to get 3,000 for it.  I was thinking on giving them the Jeep on trade and telling them I will cut them a check for $17,500 total including taxes, fees, everything in fine print.  Then see where it goes from there.  What say the hive?

I have also been working on my wolf stare and if the salesmen are not working with me I have no problem blading at 45 to the next dealership.

I have friends that have gotten better deals using the financing.  Then pay the note off after a month.        
 

I'd rather have root canal than deal with those sob's
But then again its been over ten years since I bought a new car.

Exactly. A lot of dealerships make money off the financing so cash usually doesn't get you a discount.

I don't think so, the dealers usually get kickbacks from the financing companies

Cash does nothing at a car dealership.  When you finance a loan, the dealership gets paid right away, (unless you are using the company financing like ford credit or Toyota financial.)

A lot of the money they make off of you is from the financing. They would probably let you think you were getting a better deal and lower the price if you were financing with them.

Google it and you will find a few articles of car salesman explaining all of this in better detail than a 13er can  

Pretty much always get a better deal if financing.  Lots of times the finance company will give discounts on the price if you finance through them, usually the manufacturer finance company.  The dealer can also ad some to the rate, they pay the financier 5 percent and charge you 6.  So they are willing to take a hit on the purchase price because they think they can make it up on the backside.  Never let them know you plan to pay it off right away though or the price will likely go up.  Look as needy as possible and finance for the longest term possible, just make sure there are no early payment penalties or other stipulations that could screw you.

It's not true with new car sales and it's even less true with small mom and pop dealerships.

Also I used Yahoo Auto quotes and my deal was 1700 less than Sam's club and Consumer reports buying services..
Go to yahoo auto and then Nissan Xterra and get multiple quotes

Thanks everybody!

It depends, but the car dealer has to make money. IF they can make money on the financing, they will sell the car for less. If there is no profit on the financing, they have to make money on the mark up. Generally speaking, profit on the financing is less obvious to the customer. They can make $1000, but spread over the life of the loan, the customer might hardly notice or care. However, if you mark up the sale price a grand, it will certainly be noticed.

Most car dealers use a system called 4 square to get people to focus only on the monthly payment. It also prevents them from committing g to a low sale price, assuming they will make money on the back end, only to have you turn around and say: "surprise cock fags! I'm paying cash!".

Car companies make their money from financing these days.  You will probably get a worse deal by paying with cash becuase they can't creatively play with the numbers.  Do not discuss the payment terms until the price is settled; then tell them that you will pay with cash.

This because they will make a little on the back end so will cut more on the front end.  Then at the last second tell them you're paying cash.

Sure you can. But the savings comes from the bank in the form of no interest charges.

I buy my cars/truck over the phone. I wont even go into a dealership without knowing the exact price.
45 minuets in/out, drive away with new car/truck.

I hate those people.

Recently bought a truck.  Never set foot in the dealership - sales guy came to the house with the truck and a driver to take the two trade-ins away.  Signed all the paperwork on the kitchen table.  Friggin' awesome and I'll never go to another dealership again.

This.

When I bought my F150, I took a $5000 note from Ford Credit to get an additional $1000 of the price.  I had to make three payments, then paid off the note.  Worth it.

I seriously doubt waving a handful of hundreds will get you any better deal than waving your checkbook.  In fact, I doubt dealerships really want to handle the case all all.

For people that have financed vehicles - is there a prepayment penalty clause in the contract?

Sure it's posted on here before. Very long but interesting.
http://www.edmunds.com/car-buying/confessions-of-a-car-salesman.html

FPNI

But for your question. Generally not.  I always take my sweet ass time reading every line of the fine print.  


OP should have been shopping at the end of last month

This we just bought a new car all online. Dealership had a Chat feature with their online sales rep. Was easy as shit and no BS. I used the USAA car buying service too and saved just over 3k over the lowest price we worked out.

I did the same thing with my silverado through Ally.

In which contract?

they make a lot of money on financing. also, when people finance, they tend to buy a lot of the other crap offered as add ons becasue it can be rolled into the financing.

Not anymore, the financing profit is baked into the cake. They'll offer a better up front price if they see themselves making money on the back end.

Best thing is to show up with a decent downpayment, negotiate total price and total price only (Purposefully ignore payment talk, accept a longer payment term etc). You can talk them into giving you a sweetheart price with absolute rape built into the financing, then just  pay off the note the first payment.

I doubt that you will get it done for $17.5K difference, but it is worth a shot!

Ally is the new name for GMAC financing

IF I ever buy another "new" car, I will use my USAA new car buyer service.   I suck at "negotiating" but at least I know I suck at it and I will use someone better than me (which is about anyone) to close the deal.

 


 

Without the sarcasm, I mean you need to read, "There is no prepayment penalty" in the contract you're signing.  Whether that has been the case for other people, signing other contracts, has no bearing on you and yours.

this is sound advice



 

Must be my ford dealer math is different than nissan dealer math. Last time I checked $23890 minus $3000 for your Jeep leaves $20890. And you are looking for the dealer to take $17500 INCLUDING tax and fees? By what means did you arrive at this number? So basically you are looking for this dealer, whom you have probably never dealt with, to just make $3390 PLUS you local taxes and dealer fees to just evaporate? And I'm guessing your next statement will be that this dealer didn't want to sell a car. Please, before you go into this ask your self a couple of questions. If truecar or whoever says that the average price is $3300 more than what you are thinking how do you REALISTICALLY think that is going to happen? If you were the dealer, even if it was a leftover, exactly how much would you be willing to lose just to move a car to somebody whose closing line is going to be "Well if you wont do it I'll find somebody who will"?

Without knowing anything about Nissan and their programs I would say this. I'm thinking that truecar takes the rebates into consideration for their average price. So if they are saying $23890 lets use that. Without seeing your jeep we can pretend its actually worth $3000. I would  take the $20890 and mulitply by your local taxes. Because its a leftover if the numbers that the dealer comes back with are close maybe ask him to eat his delaer fees. Remember just because its a leftover its not like it is  a free car for the dealer. They still have a cost and a cost of doing business and nobody can survive losing $3400 on every deal. I woould at least ask if there are any rebates tied to financing it. Even if they bump the rate if you plan on paying it off in 3 months what do you care? Try not to step over a dime to save a nickel.

Don't forget, this guy would have you buying ESP, the paint protection, and the scotchguard...  And the lot car alarm.

Forget that noise.  Tell em take out the floormats and knock off the 299 bucks.

I got a 2010 in Dec 2009. sticker was $32,750

Put down $7,000 cash and they gave us site unseen $5,000 trade in on the wifes 2003 ranger.

Walked away with the top of the line Xterra OFF ROAD 4x4 for $24,500.

Great 4x4 better then a jeep if you ask me.

around town mpg not so good hwy is around 20mpg

This, BUT!!!  make darn sure the loan terms allow to early payment without penalty.  

My uncle in law owns a dealerhsip so I got some insight. First he get's kick backs any time they finance a vehicle. They will negotiate the vehicle price more readily if they think they are expecting a kick back. Best tactic is to tell them you are going to finance and then immediately pay off the loan. Second never trade in, they are just printing money off of you if you do. Take your trade in to one of the big automarts and that pay cash for your vehicle.

My wife and I were sitting across from a salesman at a Toyota dealer finalizing a purchase when I looked up and saw a huge banner that said "$1000 OFF FOR RECENT COLLEGE GRADUATES".

I pointed upwards and said, "Does that apply to graduate degrees granted within the last 6 months?"

He says, "Yes, yes it does."

I stand up and say with a smile, "My wife would like to purchase this vehicle".

I change places with my wife.

Guy is amused. He does some paperwork, walks away, comes back five minutes later. He says, "Apparently the only way to get the $1000 off is to finance the vehicle, and use Toyota Motor Credit for the loan."

I say, "OK, what's the minimum I, errr, she can finance? $50? $100? $500?"

He says, "No one has ever asked me that question before. Be right back..."

He comes back five minutes later.

He says, "You have to finance half the total."

I say, "Ok, write it up."

He says I have to meet with the finance guy first.

I say, "The finance guy is not going to like me, at all."

We go to the "finance office". You already know what those people look and act like.

He says all professionally, "Hi, I'm here to help you get this brand new vehicle, the vehicle you want and love".

I say, "Excellent. Stop talking, write up the paperwork."

He does his thing, runs my credit, explains how a car loan works, what something called "APR" means, explains what happens if I default, etc etc etc. Meanwhile he is typing feverishly into his terminal.

I ask him for the payoff amount.

He says, "What?"

I say, "How much do I owe on the loan, today?"

He says, "Today? Before you have made any payments? It's basically the loan amount plus this $(minor) loan processing fee"

I say, "The total payoff, please", as I get out my checkbook and lay it on the table.

He looks incredulous. "It doesn't work that way."

I say, "The guy over there said I would get $1000 off the vehicle if I financed half the purchase price. You have just arranged financing for half the purchase price. So thanks to you I have a loan. I would now like to pay off the loan. Here. Now. Right now."

He looks even more incredulous. "It doesn't work that way."

I say, "Explain. Use as much detail as you think is necessary."

Toyota Motor Credit, the dealer, different entities, loan processing time, loan underwriting time, loan paperwork to be done, payment booklet to be mailed, blah blah blah.

I say, "When can I pay off the loan?"

He says, "Probably the day after you get the loan payment booklet. I think that might still cause problems because your first payment sets in motion a few things at TMC. "

I say, "Don't care about that... and we're done here."

I drive away in my wife's new vehicle. It's half-financed. She tells me I owe her for my half of her car.

About 3 weeks later the loan booklet arrives in the mail.

By complete serendipity there is another piece of delivered mail which is my wife's Continental Airlines branded Visa bill. Her card gets air miles with every dollar spent. Included as part of the Visa bill is a "check" with an offer for one month interest-free. They hope you'll transfer another card balance there.

I get to thinking.

My wife and I call Visa to figure out what the limit is on a "transfer". In addition, they confirm that transferred monies will accrue air miles. The plan is coming together. The rep warns that after the first month it will be treated as a cash advance. I'm still amused.

I send a registered letter to Toyota Motor Credit noting the loan payoff, and include the transfer check from Visa. I send Visa a corresponding personal check for the loan amount.

We wait. Visa calls my wife, informs her "we rec'd a big check and we think you may have put the wrong check in the wrong envelope". My wife tells them to apply the check to the account since we have a transfer in progress. They do it.

A week and change later I get a letter from Toyota Motor Credit telling me how much they appreciate the final payment on the vehicle loan and that the title processing is in progress, and the title will arrive within two weeks.

Two weeks later I have the title in my grubby hands.

The summer before Katrina I was sitting with my wife in a very nice restaurant in New Orleans, having flown there for free using the air miles from my vehicle purchase.


ar-jedi

With some of our incentive plans paying cash disqualifies you for a $1000 credit if you are financing the vehicle.
As far as 13's go we are nearly out of stock with ~30 pieces left. The mfgr just paid out the last of the incentives on them and we are blowing them out at cost plus $500.

As for the Jeep trade-in, KBB is a guide and not an industry standard.
If the OP came in wanting that sort of money for his Jeep we would kick the trade and cut him the best deal we could on what he is purchasing.
If you want that kind of money for your Jeep you would be better off selling it privately.

We won't sell our vehicle wholesale and pay retail for the trade.
It just does not work that way.

Was the inflight kosher meal good?

is this supposed to mean something derogatory?

ar-jedi

I got a better deal on my Camry, but going through financing over cash and Chase instead of Toyota.

The dealer gets a kickback on the financing.  You can usually get a better deal if you are financing through the manufacturer's finance company.



You can always pay the note off right away.



I think you are overestimating how much profit the dealer might see on a new car.

We just bought a loaded F350 ranch and another f150stx last week and would have gotten a better deal had we gone through ford financing. I think the total savings on $92,000 in sales would have been about $3k.  
I beat up three different ford deals and they were all within a few hundred of each other.  

We paid cash anyway.

Doesn't it feel great when you screw the screwers?

Dad was a banker. He LOVED the 0% interest for a year credit card checks (back when they did them with no balance transfer).

Take check, cash it, put money in CD, wait.  Withdraw money, pay CC in full, pocket CD interest.

Without knowing anything about Nissan and their programs I would say this. I'm thinking that truecar takes the rebates into consideration for their average price. So if they are saying $23890 lets use that. Without seeing your jeep we can pretend its actually worth $3000. I would  take the $20890 and mulitply by your local taxes. Because its a leftover if the numbers that the dealer comes back with are close maybe ask him to eat his delaer fees. Remember just because its a leftover its not like it is  a free car for the dealer. They still have a cost and a cost of doing business and nobody can survive losing $3400 on every deal. I woould at least ask if there are any rebates tied to financing it. Even if they bump the rate if you plan on paying it off in 3 months what do you care? Try not to step over a dime to save a nickel.

Don't forget, this guy would have you buying ESP, the paint protection, and the scotchguard...  And the lot car alarm.

Forget that noise.  Tell em take out the floormats and knock off the 299 bucks.


You missed my point totally. I was talking about the math surrounding the car. Nothing else. If OP is smart enough to handle modern math then I'm thinking he can say no to the finance guy going for his bump. If, when speaking about the car and the trade, your dealer comes reasonably close to a reasonable offer, why torture yourself shopping all over the planet. If the dealer is $3000 off, then I would walk as well. BUT, your thinking on what is reasonable has to be in line as well. As stated in the op, $17500 I'm thinking is out of line for the buyer. If he adjusts his math, it should be no problem. He wants to buy a car and the dealer wantys to sell one.

Try to do it toward the end of the month, especially if it's been tough sales for the dealership.
Quota's to be met makes it a tad easier to get a better deal, it's even better if car sales slump for the month.