Last post on May 19, 2013 at 1:46 PM
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Car Buying, Car Selling
#3011 of 3219 Re: Best Deal: finance vs cash purchase (new car)? [qbrozen]
Oct 25, 2012 (5:11 am)
gbrozen is right.New car salesman gets paid for moving a unit plus a percent of any profit (if any) on deal.Finance guy gets paid on any markups on finance deals, extended warranties etc. Two seperate people with 2 seperate agendas
#3012 of 3219 Re: Best Deal: finance vs cash purchase (new car)? [runawaywind]
Oct 25, 2012 (9:02 am)
Dealers look at the entire deal including selling price, financing, trade-in, etc. As we all know, the sales people really don't set the price. Price is set by the manager in '"the tower." While sales people may be concerned with the sale, the managers are cognizant of the whole deal.
Many of the "experts" who publish car buying advise suggest dealers will often lower the selling price a bit if they think they will make additional money from the sale of products (financing, service contract, mop and glow, etc.) in "the box" (F&I office). What is clear is the selling price won't rise if the dealer views the buyer as someone who would buy additional "product" in "the box."
Many of those "experts" also suggest a dealer really doesn't care about a cash buyer. The dealer gets its cash regardless.
#3013 of 3219 Re: Best Deal: finance vs cash purchase (new car)? [billy3554]
Oct 26, 2012 (8:47 pm)
I only worked in the car business for 5 years and 2 dealerships so my experience may be abnormal. But at the two dealerships I worked at the " manager in the tower" was the new car (or used car) sales manager and he didn't give one whit about anything but the price of the car.I actually thought the whole process was somewhat dysfunctional in that logic says someone should be looking at the whole deal.But in the places I was at that was the GM and he was only "in the tower" when the new car manager was out
#3014 of 3219 Re: Best Deal: finance vs cash purchase (new car)? [jproc]
Oct 27, 2012 (12:44 am)
Thanks, all, for your input! I really appreciate your responses.
#3015 of 3219 What's the best way to work out this tricky financing?
Nov 08, 2012 (1:21 pm)
Basically there is a person who needs a car. She has money for a down payment, but no job. She needs a vehicle so she can get to the future job, so we want to start there. Without a job, she can't get financing. I on the other hand get financed anywhere. We want to put both of our names on it, but the dealer we talked to won't even include her on the sale because of the job thing even though my name will be on it and I'm approved. Is this common? Is it possible for me to transfer over to her at some point when she has a job? What's the best way to make this work where she is in on it since we want the insurance to be in her name...
#3016 of 3219 Re: What's the best way to work out this tricky financing? [jake778]
by kirstie_h HOST
Nov 08, 2012 (3:32 pm)
What state are you in? This may make a difference.
They can't put her name on the financing, because it will be declined since they would have to take both of your incomes & credit scores into account, and they can't give equal responsibility for a loan when one party currently has no ability to pay that loan.
In my state, however, the loan & title are separate issues. You can add a name on the title, meaning she would be part owner (of any equity, and any responsibility too should an accident occur) and could, therefore, get insurance coverage.
#3017 of 3219 Re: What's the best way to work out this tricky financing? [kirstie_h]
Nov 08, 2012 (3:45 pm)
I agree with Kirstie. The car can be titled in both names even though one is not on the loan.
Nov 09, 2012 (10:56 am)
Thanks for the responses. We are in Nevada. I'm perfectly okay carrying the financial burden in my name exclusively, but the insurance and title need to have hers included.
#3019 of 3219 Paying Cash, unsure about trade-in, best way to handle?
Nov 10, 2012 (10:40 pm)
My Mom wants a new vehicle to replace her 2007 Ford Explorer EB 2WD. It is in excellent condition inside and out, never wrecked an has all maintenance records. But dealer offers for trade-in have been far less than any of the pricing guides (Edmunds, KBB, NADA). I'm considering not trading it in and trying to sell it privately.
She has selected a new vehicle, a Hyundai Santa Fe Sport, and plans to pay Cash for it. I have explained to her and my step-dad that this does NOT improve their negotiating position.
Walking into a dealership and saying I don't have a trade-in and paying cash is a lot like the customers who go to a grocery store and only buy the items on sale. Dealers are businesses, not charities and they need to make a fair profit. At the same time, I want my Mom to get the best deal possible on her new Hyundai!
How should we handle these issues with the dealer?
#3020 of 3219 Re: Paying Cash, unsure about trade-in, best way to handle? [igozoomzoom]
Nov 11, 2012 (8:13 am)
The trade in really won't be an issue. It actually simplifies the transaction.
If you go over to real world trade in values here on Edmunds and post the info on the Explorer, you'll get an idea on its value.
As for paying cash, no need to mention that. Just negotiate the price of the vehicle and ignore/deflect the questions about "what monthly payment do you want" or "will you be financing."