Negotiation tactic question

[lookitsadam]

My question isn't Jeep specific, and could be applied to anything you can finance from a dealer like motorcycles, jet skis, boats, etc.

Suppose you are financially able to pay the full amount for a vehicle in cash up front without the need to finance. Should you...

1. Tell the dealer right off the bat that you'll be paying cash before negotiating on price.
2. Tell the dealer you'd be financing through them, negotiate a price, then pay the full amount in cash after they give your a final price and financing offer.

Which of these would hypothetically get you a better price?

I can see how #2 can be a bit sneaky and rude, but I've heard that dealers are more incentivized to give a lower out the door price if you say you'll be financing, than if you were to say you're paying cash.

Any thoughts?

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[Arterius2]

My question isn't Jeep specific, and could be applied to anything you can finance from a dealer like motorcycles, jet skis, boats, etc.

Suppose you are financially able to pay the full amount for a vehicle in cash up front without the need to finance. Should you...

1. Tell the dealer right off the bat that you'll be paying cash before negotiating on price.
2. Tell the dealer you'd be financing through them, negotiate a price, then pay the full amount in cash after they give your a final price and financing offer.

Which of these would hypothetically get you a better price?

I can see how #2 can be a bit sneaky and rude, but I've heard that dealers are more incentivized to give a lower out the door price if you say you'll be financing, than if you were to say you're paying cash.

Any thoughts?

2, but don't tell them you are financing either. All options are on the table until an acceptable price has been reached.

There is nothing more sneakier than a car salesman so don't you worry about them.

 

[Jeepers!]

2, but don't tell them you are financing either. All options are on the table until an acceptable price has been reached.

Yeah, don't negotiate financing then write a check. Just negotiate a price. Once a price is negotiated, then incentives for financing could be discussed. But you won't get those incentives if you then pay cash.

 

[Dingus]

I paid cash for mine. I just called / emailed with "here are the specs, I'm paying cash, no trade in. What's the price?" Beat the going in an haggling price by about $2k.

I also looked into all incentives available - Tread Lightly, https://bonusdrive.com/ (got $250 back because of my insurance company), https://www.fcausaffiliates.com/ (got $300 because of my wife's employer) - not all deals stack, but to have the print outs available when you go in makes things easier.

I was referred to my dealer by Costco auto sales. After they did the hand off, the dealer wanted to schedule a test drive. Nope - what's the price? I wasn't expecting much, but their deal was quite good (esp for the area) and they were really good to work with.

 

[InvertedLogic]

Financing was not part of the negotiation on mine. After we agreed on the price, then we talked finance.

 

[Dingus]

One dealer I went to wanted to run a credit check on me before we even started negotiation. "Oh, I'm paying cash." "Yeah, we're still required to run a credit check." "I'm assuming it's a hard pull?" "It's a credit check." "Yeah, I'm not going to do that."

 

[Ron_H]

I wrote out a spec sheet for the vehicle I wanted to factory order. I then sent a request for quotation (RFQ) to all of the dealers in this and the surrounding area. I also included the fact that I would be paying cash and the date when I would choose a dealer to place my order through. I also asked a few qualifying questions such as downpayment amount, handling of post order placement manufacturer rebate offers, the maximum time for delivery, etc.

There was a huge difference in prices and some of the dealers just did not seem inviting with downpayment amounts and post-agreement rebates, etc. The lowest price dealer was one who I did not like in terms of rebates and downpayment. I took their offer to the next lowest dealer, who seemed more willing to work with me and they reluctantly agreed to meet the best dealer pricing. All of the above was done by emails and a single phone call.

I then went to the dealer and signed the deal.

Easiest car purchase ever and I have not heard of another local deal with a better price.
All pricing was "out the door", including all fees and tax, making it an even playing field.

 

[Scott2.0]

Just negotiate the price without discussing payment. If there’s a financing offer, take it and write a check to pay the loan off.

 

[Jebiruph]

Get the FCA credit card with rewards worth 10% towards dealer purchases. Then negotiate the amount they will let you charge on the card, most will have a limit. $10,000 on the card get you $1000 worth of dealer accessories. If there is a rebate for FCA financing, finance part of it to get the rebate, then pay it off early.

 

[tyresmoker]

Why are you all making this so difficult?
Get the tissue price (invoice-holdback) and figure out how much profit you are willing to give the dealer. It is all over these boards and the internet for that matter.
If there is a finance cash incentive on the table (there is not) finance the minimum and pay it off as soon as possible.

Take it from someone who has bought WAY too many new cars....Leaving a few dollars on the table comes back is SPADES when there is a service/warranty problem....

 

[JP18]

Just negotiate the price without discussing payment. If there’s a financing offer, take it and write a check to pay the loan off.

THIS. I had an extra $1k of because I financed. I paid it off on the first payment.

JP18

 

[Lecroj]

Why are you all making this so difficult?
Get the tissue price (invoice-holdback) and figure out how much profit you are willing to give the dealer. It is all over these boards and the internet for that matter.
If there is a finance cash incentive on the table (there is not) finance the minimum and pay it off as soon as possible.

Take it from someone who has bought WAY too many new cars....Leaving a few dollars on the table comes back is SPADES when there is a service/warranty problem....

How do you get the tissue price.

 

[shutamouth]

Get the FCA credit card with rewards worth 10% towards dealer purchases. Then negotiate the amount they will let you charge on the card, most will have a limit. $10,000 on the card get you $1000 worth of dealer accessories. If there is a rebate for FCA financing, finance part of it to get the rebate, then pay it off early.

Love this answer. Or open any CC with bonus cash after initial spending. I’d be happy to refer you one. Great way to squeeze a winch worth of $ out of the deal and has nothing to do with the dealer themselves.

 

[Scott2.0]

How do you get the tissue price.

Invoice and holdback are listed on the POC. There’s more to a dealer’s profit equation than those two numbers though.

 

[Covfefe]

I just don't bring it up and if they ask, I just say I don't know yet

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