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

ncbill 06-12-2021 02:11 PM

Quote:

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

I used a broker to negotiate my last lease.

Stuck my kid on a cheap flight to pick it up & drive it back.

If I ever buy a new vehicle I'll use a broker as well.

tenant13 06-12-2021 05:52 PM

It may sound strange but at the ripe age of 57 I just bought my first car from a dealer.

25 or so years ago I had a Nissan 240SX but I bought it for cash from a dude who was selling reconditioned post-accidents vehicles. Then I lived in NY and and didn't need a car. This time around I went to a few Subaru dealers and eventually got myself a slightly used 2021 Outback "loaner": this is what dealers loan to people while their cars are being repaired. The car itself is kind of meh - it moves like a cow (I passed on the XT engine) and the seats suck - but I only need it for my across country road trip and that will mostly take places on the back roads. So I guess I don't need a sprinter... And I won't drive long hours.

As to financing. They were quite open about not wanting to do any cash deals - they make money on originating loans and selling them to financial institutions. In this case Chase had a sweet deal of 0.99% financing through some special relationship with Subaru so I went for it. I can definitely make more than 1% with that money so I'll hold off with paying off the loan until my trip is done and I'm ready to sell.

frank 06-13-2021 06:03 AM

Quote:

Originally Posted by ncbill (Post 2619681)
I used a broker to negotiate my last lease.

Stuck my kid on a cheap flight to pick it up & drive it back.

If I ever buy a new vehicle I'll use a broker as well.

what kind of broker do you use and where do you find them. never heard of a car purchase broker.

braumeister 06-13-2021 06:33 AM

Quote:

Originally Posted by frank (Post 2619838)
what kind of broker do you use and where do you find them. never heard of a car purchase broker.

This may be helpful:

Car Brokers

Using a Car Broker to Buy Your Next Vehicle

ncbill 06-13-2021 02:14 PM

Quote:

Originally Posted by frank (Post 2619838)
what kind of broker do you use and where do you find them. never heard of a car purchase broker.

Bunch of lease brokers here:

https://forum.leasehackr.com/c/reviews/11

Note with a purchase there's only one variable to negotiate. :)

24601NoMore 06-13-2021 03:18 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.

BIL is a Chrysler mechanic at a very large area dealer and says "I'd hate to be a sales guy right now..we have NO. CARS for them to sell".

Said he's never seen the sales lot so totally empty in the 30 or so years he's been there.

Even used cars are going for way above pay-off value. I read a story the other day about CarVana (?) and other places paying MORE than people owe on their leases and/or loans just to get vehicles. Sometimes a LOT (as in $5K over) more. You can apparently go to their website, key in your car's info and get a buyout quote either real-time or very quickly. They are apparently totally desperate for cars..but will then turn around and sell what they paid you thousands to much for to some other person for...even more thousands above what they paid you.

Yeah..if you don't ABSOLUTELY need a car right now (or a house), stay far away from either market. They both have no inventory and prices in both are totally bonkers and inflated beyond words.

aja8888 06-13-2021 04:19 PM

1 Attachment(s)
Today I checked the value of my 2005 Mustang convertible (base model, not GT) with 64,000 miles on it. I used Kelly Blue Book as they are pretty good with average retail and trade in values.

The car is Mint and has new tires, new A/C, perfect paint, etc. Last year, from memory, the "Private Party Average Retail" was about $6 K. Today's value puts it at $9,010. This is nutty money for a 17 year old V6 automatic Mustang.

Attachment 39222

mz44 06-13-2021 04:25 PM

1 Attachment(s)
Quote:

Originally Posted by aja8888 (Post 2620053)
Today I checked the value of my 2005 Mustang convertible (base model, not GT) with 64,000 miles on it. I used Kelly Blue Book as they are pretty good with average retail and trade in values.



The car is Mint and has new tires, new A/C, perfect paint, etc. Last year, from memory, the "Private Party Average Retail" was about $6 K. Today's value puts it at $9,010. This is nutty money for a 17 year old V6 automatic Mustang.



Attachment 39222

I'll have to check on my 07 Gt conv w 33K.Attachment 39223

jr6035 06-13-2021 04:39 PM

Quote:

Originally Posted by lauradrops (Post 2617962)
I went car shopping at some local Honda dealers looking for a new or CPO car. I did most of it online so I could cut down time at the dealership. Went to see one in person and was told if I pay cash they would charge $1500 more.

Is this a thing? I never heard of such a thing. I obviously left, but not before I let it play out for a few minutes. She asked me to give her a minute to talk to her manager before I left to "see what he could do". I thought maybe they were going to say they would wave the cash fee and expect me to pay full ask instead like it was a bargain. Nope, manager said it would be full asking plus 1500 cash fee.

I did purchase at another dealer who was happy to negotiate a great deal for me in cash. I was really just shocked by the first dealer and wonder if anyone else ever heard of such a thing.

I paid cash on a new Honda in November. No fee. I would move on to a Toyoya then.

aja8888 06-13-2021 04:42 PM

Quote:

Originally Posted by mz44 (Post 2620054)
I'll have to check on my 07 Gt conv w 33K.Attachment 39223

Nice! :coolsmiley:

retired1 06-13-2021 05:04 PM

Quote:

Originally Posted by racy (Post 2617977)
I take their financing option then immediately pay it off (after confirming that's an option without penalties).

+1

Bongleur 06-13-2021 11:20 PM

Quote:

Originally Posted by teetee (Post 2619278)
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.

I suppose when you get a price from a car buying service like thru a credit union or Consumer reports, those items are rolled into the "discount" - or is there any chance of telling them you know those are bogus & you need them struck off of the buying service price?

NW-Bound 06-14-2021 12:43 AM

Quote:

Originally Posted by lauradrops (Post 2617962)
I went car shopping at some local Honda dealers looking for a new or CPO car. I did most of it online so I could cut down time at the dealership. Went to see one in person and was told if I pay cash they would charge $1500 more.

Is this a thing? I never heard of such a thing...

When I bought a new Chevy in January this year, the same thing happened to me at one dealer. I guess he suspected that I was going to pay cash, because I kept pressuring them on the "out-the-door" number. He tried to steer me into a finance deal with a high interest rate, even though my credit score was perfect. I suspected that he got kickback from that bank. When I said I was going to pay cash, he wanted more money, $1500 IIRC.

I got pissed off and went to AutoNation. They were cool with my paying cash, and gave me the same price as the other guy, but without the BS extra fee for cash. Deal!


About the shortage of cars, both new and used, I read that even car rental agencies now go buy used car to restock their fleet, because they could not get new cars. Desperate time!

DrRoy 06-14-2021 04:55 AM

I have not heard of this, but demand is up and supply is down. I would give 60 seconds notice of walking out.

Badger 06-14-2021 07:29 AM

Quote:

Originally Posted by racy (Post 2617977)
I take their financing option then immediately pay it off (after confirming that's an option without penalties).

+1
I have done this 4 times now. But first I make an initial payment at the dealership with a CC. They only allowed about $3-4k otherwise I would have made the entire payment by CC for the points. I had to make at least 3 payments on the financing before paying it off. They had some "discount" for financing so I netted about a $1k savings.


Cheers!

seattledan 06-15-2021 03:58 PM

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.


Holy crap. I never knew. Wow, this business got even sleazier.

Parfumeur 06-15-2021 04:00 PM

>> She said DO NOT buy a new car right now unless you absolutely need to.

This is very good, BUT what is the rationale for that statement??

CardsFan 06-15-2021 04:09 PM

Quote:

Originally Posted by Parfumeur (Post 2620831)
>> She said DO NOT buy a new car right now unless you absolutely need to.

This is very good, BUT what is the rationale for that statement??

I think you quoted me.

The fact is the dealers, at least the one she works for, have very low inventory and are not dealing. I suspect they also only have the "loaded" versions available, though she did not say that.

TappyGee 06-15-2021 04:16 PM

I bought a Honda Accord at the dealer August 2020. Paid cash. No mark-up for cash. They were surprised that I arrived with a written price from an online company on that specific car. They tried to add $3 grand on. I did not permit them too. ����*♀️

msanniee 06-15-2021 04:19 PM

Quote:

Originally Posted by racy (Post 2617977)
I take their financing option then immediately pay it off (after confirming that's an option without penalties).

There is an underwriting fee for car loans the dealer generates. They make $$ if you finance through them.


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