Overhaulin'

Buying a car cash. How much can I tell them to knock off the sticker price?

The car I've got my sights on is 18k, right at blue book value. I've got cash money to pay for it, which I know the dealership would prefer. I'm not a haggler. How much is a reasonable number I can tell the salesperson to take off to make it a done deal?

Public Comments

1. Pretend that you're shopping around. BTW, dealers would actually prefer you pay via installment. A $20K car easily becomes $35K after the payments are done.
2. If its a small mom & pop dealer, they might give you a nice discount for cash. If its a large dealer that sells new and used, they won't care. Most dealers prefer you finance because they get extra profit from financing. Cash deals do not generate the same profit so the chance of a low price is small. If the car is new offer right at invoice. If it is used you will have to be $1000 or so above trade in value.
3. Cash customers are NOT the preferred buyers and will not see a significant price advantage compared to a customer with good credit. We prefer a good creit score to a cash customer all day. Why? Well a cash customer is less likley to buy warranties, maintenance packages, LoJack, etc, We get profit from all of those things. We also get profit from the bank contract itself. When you pay cash, you are effectively shutting down several opportunities for a dealer to make profit. This thinking goes back to the old days when banks took weeks, sometimes months, to fund a deal. We would send in a contract then have to wait for the bank to cut a check and send it to us. Back then, cash spoke loudly. Today, a customer with a strong credit score can finance a car, ans we get our money within a couple of days. Sometimes its a matter of hours. So the old myth of cash making our eyes light up like a cartoon character are over.