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-   -   Fee for cash buyers??? (https://www.early-retirement.org/forums/f28/fee-for-cash-buyers-109567.html)

audreyh1 06-09-2021 07:41 PM

Quote:

Originally Posted by REWahoo (Post 2618302)
I've seen info saying all the news about new car shortages saw dealerships crowded with panicked eager buyers in April and May. Many if not most sales were at or very near sticker price, or even above for in-demand trucks and SUVs. The rush left little in inventory and not much is in the pipeline to re-fill dealer lots. As a result, most new car dealerships are now primarily used car dealers.

FWIW, I checked the inventory of a couple of large Toyota dealers in San Antonio last week. One had 33 new vehicles on their lot, another had 55. Each would normally have several hundred.

Edit: I just checked both those Toyota dealers again and found each of them says they have one (1) new Venza on their lot. What are the chances of negotiating a good price on one of those today?

For some reason the dealers lots seem full of cars down here.

REWahoo 06-09-2021 08:00 PM

Quote:

Originally Posted by audreyh1 (Post 2618402)
For some reason the dealers lots seem full of cars down here.

According to their website the Toyota dealership in Brownsville has a total of 54 new cars on their lot. Not sure what their inventory would usually run but that seems a small number to me.

Most dealerships have tried to load up on late model used cars which could be masking the number of new cars on their lot.

Bflotomny 06-09-2021 08:45 PM

Why? Why? Why? Why is buying a car such a process. Think about all the things we buy year around. Think about your house. You may look at many houses and finally settle on one. But you know going in what the price is. Sure you may negotiate some but the list price is still somewhat near the price paid. And once you move in you know your neighbor who purchased two days after you didn't pay $25,000 less because he could negotiate better than you.
Car buying and shopping is a joke.

harley 06-09-2021 10:50 PM

Quote:

Originally Posted by REWahoo (Post 2618289)
As I understand it, yes, it is. I've seen reports saying it is the worst time since the end of WWII to try to buy a car, new or used.

If you have any links I would appreciate seeing them. DD is car shopping and I'm trying to convince her to wait awhile. I googled it but only got hits on what the best months to buy a car are.

bobandsherry 06-10-2021 05:58 AM

Quote:

Originally Posted by Bflotomny (Post 2618433)
Why? Why? Why? Why is buying a car such a process. Think about all the things we buy year around. Think about your house. You may look at many houses and finally settle on one. But you know going in what the price is. Sure you may negotiate some but the list price is still somewhat near the price paid. And once you move in you know your neighbor who purchased two days after you didn't pay $25,000 less because he could negotiate better than you.
Car buying and shopping is a joke.

Not sure of your analogy. Not a resell home as you can't find the "same" home in a resell market, not typically. Maybe with buying a new construction home vs new car. But I can assure you, if you don't negotiate with a new construction home purchase you have overpaid. I have a new construction home, my price was the same as my neighbors. But I got more money to cover "closing costs", I walked out of closing with a credit. I also had thousands of dollars of options added in. I paid less than my neighbors. They didn't know you could negotiate.

You can negotiate on many large ticket purchases. When we bought an appliance package years ago I was able to negotiate a lower price and got them to also include free delivery.

So I guess car buying is hard because people expect to negotiate. Tesla changed that model, but it still hasn't caught on. Yet Ford, with the Mach-E stuck to a set price, so maybe learning or maybe just because it's new.

REWahoo 06-10-2021 06:24 AM

Quote:

Originally Posted by harley (Post 2618461)
If you have any links I would appreciate seeing them. DD is car shopping and I'm trying to convince her to wait awhile. I googled it but only got hits on what the best months to buy a car are.

Try searching news for "Wait to buy a car".

Here's the first link that came up for me: https://lifehacker.com/why-its-a-ter...you-1846985137

And there is this on YouTube: Here's Why Now is the WORST TIME in HISTORY to Buy a Car

https://www.youtube.com/watch?v=IBIgfbIfpQs&t=389s

Ready 06-10-2021 09:28 AM

Tesla raised pricing on its Model 3 and Model Y five times in the past two months. And, there is a 2-3 month wait to get a car.

Demand is very high right now for many new cars. And supply constraints are limiting production capacity. So we have a basic supply/demand issue right now. Until supply catches up dealers are not going to be highly motivated to sell cars they have little inventory of.

T-Minus 06-10-2021 10:37 AM

There are several new car dealers between me and my local Costco (about 10 miles each way). Yesterday on a shopping run, I drove slowly and looked at the various makes to “see what I could see”. Keep in mind, there’s Porsche, Ferrari, MB, BMW, Audi, Range Rover, Chevrolet, Toyota, GM, Nissan, Cadillac, Chevrolet, Lexus, Genesis, Subaru and a couple others. Most of the dealer lots are almost completely empty, to the point where they have to space what cars they have with 10’ gaps between them (or more) and at angles - just to make the lot look fuller. Previously, cars had been parked with 2’ at most between the vehicles. And, almost all of the displayed cars are used and other brands - like a Lexus dealer with a used Ford pickup. The exception that I observed was Nissan - they had a LOT of new vehicles on their lot. Perhaps they just aren’t as in demand as the other makes? Long story short, with minimal inventory, it’s a seller’s market.

beernutzbob 06-10-2021 01:08 PM

This BS is why I now only buy cars from fixed price dealers.

donheff 06-10-2021 03:35 PM

Quote:

Originally Posted by Bflotomny (Post 2618433)
Why? Why? Why? Why is buying a car such a process. Think about all the things we buy year around. Think about your house. You may look at many houses and finally settle on one. But you know going in what the price is. Sure you may negotiate some but the list price is still somewhat near the price paid. And once you move in you know your neighbor who purchased two days after you didn't pay $25,000 less because he could negotiate better than you.
Car buying and shopping is a joke.

I agree that car buying is awful but in my area houses are a reverse negotiation. Bidding wars can take the price up 10% or more over the listed price with no contingencies. People write letters explaining why they are the best to take your lovely home.

CSdot 06-10-2021 06:05 PM

Quote:

Originally Posted by harley (Post 2618461)
If you have any links I would appreciate seeing them. DD is car shopping and I'm trying to convince her to wait awhile. I googled it but only got hits on what the best months to buy a car are.

One argument you see for the car shopping crunch is something about a shortage or lack of computer chips due to Covid.

chassis 06-10-2021 07:41 PM

Car dealers have some of the lowest business ethics of anyone in the economy.

Buying a car from a dealer is the worst purchase experience I can think of. I have purchased more than a few cars.

Don’t pay the fee.

dm 06-10-2021 08:04 PM

1 Attachment(s)
One thing that helped was my 2017 Jeep with 30,000 miles was worth more than I thought.

Of coarse the new ones are quite a bit more, but they always seem to be.

And I wrote a bad check, told them not to cash it till I could transfer fund into it, or it would bounce. They said just give them a call when it was good.

Here is a pic of what I bought.

oiseux 06-11-2021 10:23 AM

Quote:

Originally Posted by harley (Post 2618461)
If you have any links I would appreciate seeing them. DD is car shopping and I'm trying to convince her to wait awhile. I googled it but only got hits on what the best months to buy a car are.

The surge in demand from 2020 is quite high, after a year that saw car sales down about 15%. On top of this, a major fire at a chip plant in Japan and the deep freeze in Texas caused some pretty large supply disruptions. Because demand from all other types of products is quite high due to COVID-recovery based demand, the car manufacturers have been caught flat footed with insufficient inventory and a lack of orders on the books with suppliers or with the aforementioned supply chain events. Thus, major manufacturers have had to idle plants while they procured enough supplies.

As of March, US inventories were the lowest in 10 years and April/May demand grew even stronger:
https://lmc-auto.com/news-and-insights/us-inventory-how-low-can-it-go/
(LMC tracks auto sales and production)

It is a disproportionate effect. Players like Ford were particularly hard hit, and have prioritized pickup production and other higher profit cars. Things are starting to improve from the worst impacts but will last for quite a while.
https://www.thedrive.com/news/40739/...car-production
https://www.nytimes.com/2021/06/03/business/general-motors-chip-shortage.html

CoolRich59 06-11-2021 11:18 AM

Quote:

Originally Posted by racy (Post 2617967)
Yes, it's thing. There are YouTube videos on 'how to negotiate for a car'. https://tinyurl.com/y6oa2l5o The usual advice is to not disclose that you're paying in cash until you're in the Finance office.

Don’t want to hijack the thread, but I think these Kevin Hunter car buying videos are terrific. I watched a bunch of them before car shopping. (But, now I’m waiting for inventory levels to come back. There’s no way I’m walking into a stealership and getting into a “bidding war” for a car. :nonono:)

CoolRich59 06-11-2021 11:57 AM

Quote:

Originally Posted by racy (Post 2618007)
:) Yes! Even better if you have a tired & whiny 1 year old along! (We bought a Bronco II back in the day like that).

LOL!

Way back in ‘94 I bought a Nissan Maxima. I brought along two of my boys who would have been about 6 and 8 at the time.

It did not take long for them to get bored and start climbing on top of cars, honking horns, and generally causing chaos. I pretended not to notice as the stealership staff tried (unsuccessfully) to reign them in.

I knew the price I was wanted to pay and was willing to haggle as long as it took. Those boys certainly helped get the deal closed a lot faster than if I’d been by myself. :laugh:

The icing on the cake came a few days later.

It seems that in the haste to wrap things up, the salesman made a big mistake in the paperwork and no one caught it at the time. The stealership’s general manager called me up and asked me to come in and sign the corrected paperwork. I said I’d drop by that evening. I met the GM in his office and he laid out the corrected forms and offered me a pen. I asked “First, what are you going to give me for agreeing to this change?”

He was not amused.

Another round of negotiations commenced, much less pleasant; it even included threats of lawyers and “repossession” of my new car. I said, fine, cancel the deal. You can take back your (now used) car and give me back my old car (which I suspect had already been shipped off to a wholesaler).

In the end, I *graciously* agreed to sign in exchange for two years of free oil changes. ;D

freedomatlast 06-11-2021 12:07 PM

Quote:

Originally Posted by beernutzbob (Post 2618744)
This BS is why I now only buy cars from fixed price dealers.

That way you almost guarantee that you overpay.

teetee 06-11-2021 02:53 PM

It is not a thing. It sounds like you did the negotiation with them thinking you are going to finance the car but not so they want their profit back.

Did they exclude the destination charges or dealer paperwork fee?

If you are paying those then that dealer is scamming you. If you are buying a used car, or they offer xx months free maintainence, just leave. No need to waste time dealing with liars.

lauradrops 06-11-2021 03:16 PM

Quote:

Originally Posted by teetee (Post 2619278)
It is not a thing. It sounds like you did the negotiation with them thinking you are going to finance the car but not so they want their profit back.

Did they exclude the destination charges or dealer paperwork fee?

If you are paying those then that dealer is scamming you. If you are buying a used car, or they offer xx months free maintainence, just leave. No need to waste time dealing with liars.

We didn't get that far. I corresponded online to confirm they had what I was looking for. When I went in to talk price and possible trade, she wanted to go through the entire finance thing. I said I was undecided about that and was more interested in the price of the car first, then we could discuss possible trade in and how I would pay.

At that point is when she said they charge 1500 for cash buyers. I have bought many cars, cash and finance, and never heard it put that way. I have heard of many different incentives, financing or otherwise, but never a cash fee. Just struck me as an odd.

But in the end, I got the car I wanted for what I wanted to pay and have been very happy since.

beernutzbob 06-12-2021 07:00 AM

Quote:

Originally Posted by freedomatlast (Post 2619176)
That way you almost guarantee that you overpay.

Almost everything for sale on Amazon could be bought elsewhere for less.


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