Cash buyers being ignored by dealers
Discussion
I have noticed recently that a lot of main dealers seem reluctant to sell cars to cash buyers. I have never bought a car on finance, purely for the fact that if you can't afford something, then you can't have it. This is something that a lot of people these days don't seem to understand, but I digress.
I have noticed that when trying to buy a car from a dealer they feel the need to tell me that there are other people taking finance out on the car to buy it, and when you say you will be down there in 2 hours to buy that car it has mysteriously "just been sold". Yet the car is still listed for sale nearly a week later and according to the DVLA the car isn't taxed.
Seems like they are only interested in ripping people off on finance deals.
I have noticed that when trying to buy a car from a dealer they feel the need to tell me that there are other people taking finance out on the car to buy it, and when you say you will be down there in 2 hours to buy that car it has mysteriously "just been sold". Yet the car is still listed for sale nearly a week later and according to the DVLA the car isn't taxed.
Seems like they are only interested in ripping people off on finance deals.
The finance commission is where the real profit lies. Particularly so if sub-prime.
The actual margin on the car is often quite slim, especially if prep has been considerable.
A useful tactic when negotiating is to ascertain the level of recent spending (on prep) which ought to tell you whether theres much profit 'left in the car'. The keen salesman will show his hand at this point, wishing to impress with 'recent this....recent that....'
If buying from a motor group or main dealer do so just before the last Saturday of the month as there will be such desperation to hit targets that the cars will go out the gate at break even.
Its up to the smart buyer to discover what that figure is likely to be.
The actual margin on the car is often quite slim, especially if prep has been considerable.
A useful tactic when negotiating is to ascertain the level of recent spending (on prep) which ought to tell you whether theres much profit 'left in the car'. The keen salesman will show his hand at this point, wishing to impress with 'recent this....recent that....'
If buying from a motor group or main dealer do so just before the last Saturday of the month as there will be such desperation to hit targets that the cars will go out the gate at break even.
Its up to the smart buyer to discover what that figure is likely to be.
Alex_GT said:
I have noticed recently that a lot of main dealers seem reluctant to sell cars to cash buyers. I have never bought a car on finance, purely for the fact that if you can't afford something, then you can't have it. This is something that a lot of people these days don't seem to understand, but I digress.
I have noticed that when trying to buy a car from a dealer they feel the need to tell me that there are other people taking finance out on the car to buy it, and when you say you will be down there in 2 hours to buy that car it has mysteriously "just been sold". Yet the car is still listed for sale nearly a week later and according to the DVLA the car isn't taxed.
Seems like they are only interested in ripping people off on finance deals.
This has been the way for a long time but there's a simple solution, you take out their finance (there are normally incentives that make it worthwhile) once all the terms are agreed & you have the car you just pay off the finance & keep the incentives which are normally dealer contributions a servicing package etc.I have noticed that when trying to buy a car from a dealer they feel the need to tell me that there are other people taking finance out on the car to buy it, and when you say you will be down there in 2 hours to buy that car it has mysteriously "just been sold". Yet the car is still listed for sale nearly a week later and according to the DVLA the car isn't taxed.
Seems like they are only interested in ripping people off on finance deals.
Pelicula said:
The finance commission is where the real profit lies. Particularly so if sub-prime.
Patently untrue. More profit in the metal for most dealers than the finance.Sub prime finance normally pays the dealer a tiny amount. £50/100 in some cases.
And in others, it costs the dealer. CF247 etc charge dealers for the ‘leads’ they provide
joropug said:
Get them to contribute to the finance then clear it in the cooling off period and win win?
This. I've done it on my last three purchases. I never mention I'm a cash buyer, just opt for some daft finance deal, watch their eyes light up, score an incentive in the process then clear it pronto. Jonno02 said:
Alex_GT said:
purely for the fact that if you can't afford something, then you can't have it.
Buy your house cash? Alex_GT said:
I have noticed recently....
11yrs ago a VW dealer came very close to refusing to sell me a new Golf they had in stock because I wouldn't take finance. I was buying it for one of my daughters and didn't want to complicate things so just wanted to pay cash. Sales manager stormed off in a huff at one point. They wouldn't let us have the car we'd test driven, instead getting another identical one from a nearby branch.Buying a Tiguan for wife a few years ago I just took the PCP so as to get the £2750 deposit contribution. Was one of the best purchase experiences I've had - felt the salesman would have turned himself inside out if I'd asked him, whereas in the past dealings have mainly been very adversarial Paid the PCP off a few days after taking delivery.
Alex_GT said:
purely for the fact that if you can't afford something, then you can't have it. This is something that a lot of people these days don't seem to understand, but I digress.
Yep, this was the standout sentence for me too (the trivia about the rest of the query has been answered).England's puritanical rule ended in 1660, but it seems the mindset is still alive and well.
Of course people can have things despite not yet having "the cash" - the op seems to confuse the ability to "afford" something with having the cash for it. Why would anyone not understand this?
Access to credit has made a number of people very rich, a fact often forgotten by the puritanical mindset (who are probably the ones who have got rich)
Houses are the obvious example, but businesses will often borrow for major acquisitions rather than fund out of cash reserves.
I personally won't lease (or buy) a new car, because I prefer others to soak up the depreciation hit.
But if people want to rent a new car for a bit, why not? Especially if the incentives add up.
Ps this all feels a bit like the leasing thread...
Pelicula said:
The finance commission is where the real profit lies. Particularly so if sub-prime.
The actual margin on the car is often quite slim, especially if prep has been considerable.
A useful tactic when negotiating is to ascertain the level of recent spending (on prep) which ought to tell you whether theres much profit 'left in the car'. The keen salesman will show his hand at this point, wishing to impress with 'recent this....recent that....'
If buying from a motor group or main dealer do so just before the last Saturday of the month as there will be such desperation to hit targets that the cars will go out the gate at break even.
Its up to the smart buyer to discover what that figure is likely to be.
Where did you learn all this guff from, The Parkers Guide school of Buying Techniques? The actual margin on the car is often quite slim, especially if prep has been considerable.
A useful tactic when negotiating is to ascertain the level of recent spending (on prep) which ought to tell you whether theres much profit 'left in the car'. The keen salesman will show his hand at this point, wishing to impress with 'recent this....recent that....'
If buying from a motor group or main dealer do so just before the last Saturday of the month as there will be such desperation to hit targets that the cars will go out the gate at break even.
Its up to the smart buyer to discover what that figure is likely to be.
Ian Geary said:
Yep, this was the standout sentence for me too (the trivia about the rest of the query has been answered).
England's puritanical rule ended in 1660, but it seems the mindset is still alive and well.
Of course people can have things despite not yet having "the cash" - the op seems to confuse the ability to "afford" something with having the cash for it. Why would anyone not understand this?
Access to credit has made a number of people very rich, a fact often forgotten by the puritanical mindset (who are probably the ones who have got rich)
Houses are the obvious example, but businesses will often borrow for major acquisitions rather than fund out of cash reserves.
I personally won't lease (or buy) a new car, because I prefer others to soak up the depreciation hit.
But if people want to rent a new car for a bit, why not? Especially if the incentives add up.
Ps this all feels a bit like the leasing thread...
There is a different in taking a loan to purchase an asset that you hope will appreciate, versus one that will cost a small fortune in depreciation. Financing costs in the former aren't relevant, but the later increases the total cost of ownership. Next you will be using the nonsense 'rent the car and invest the cash' argument, as if 99% of the people who lease cars actually have a pot to piss in to invest.England's puritanical rule ended in 1660, but it seems the mindset is still alive and well.
Of course people can have things despite not yet having "the cash" - the op seems to confuse the ability to "afford" something with having the cash for it. Why would anyone not understand this?
Access to credit has made a number of people very rich, a fact often forgotten by the puritanical mindset (who are probably the ones who have got rich)
Houses are the obvious example, but businesses will often borrow for major acquisitions rather than fund out of cash reserves.
I personally won't lease (or buy) a new car, because I prefer others to soak up the depreciation hit.
But if people want to rent a new car for a bit, why not? Especially if the incentives add up.
Ps this all feels a bit like the leasing thread...
Ok I am a little confused here - people are assuming that because I am a cash buyer then I am rich? Quite the opposite - the reason I buy cash is because I can't afford the ridiculous re-payments on finance deals.
I also never buy new cars - because I can't afford them. I only ever buy used. I am trying to buy a car that is around 5 years old - for reference.
Interesting about the last Saturday of the month tactic - tried to use that when buying a car but the dealer offered nothing (probably because they knew they had someone who had applied for finance on the vehicle, who then allegedly bought it half an hour after I left). This was also after the dealer explicitly stated that they wanted to get rid of it and would do a deal. Go figure.
So the tactic of pretending to take out finance then immediately welching on it - is that legal? Presumably you enter into a contract which would incur some sort of penalty if such tactics were employed to exploit it?
I also never buy new cars - because I can't afford them. I only ever buy used. I am trying to buy a car that is around 5 years old - for reference.
Interesting about the last Saturday of the month tactic - tried to use that when buying a car but the dealer offered nothing (probably because they knew they had someone who had applied for finance on the vehicle, who then allegedly bought it half an hour after I left). This was also after the dealer explicitly stated that they wanted to get rid of it and would do a deal. Go figure.
So the tactic of pretending to take out finance then immediately welching on it - is that legal? Presumably you enter into a contract which would incur some sort of penalty if such tactics were employed to exploit it?
Alex_GT said:
I have never bought a car on finance, purely for the fact that if you can't afford something, then you can't have it. This is something that a lot of people these days don't seem to understand, but I digress.
If you've never bought a car on finance then I guess you've always had a bit of money in the bank?. Good on you, nice position to be in.But finance has enabled the more "less off" people to buy a decent, reliable car, and pay a monthly payment for it.
My lads friend for example, he only had a couple of grand to buy a car.
Couldn't find anything decent for a couple of grand, so ended up using that as a deposit, and paying £300 per month.
He's got a decent car, that shouldn't leave him stranded on the side of the road, and has some decent modern crash protection, his dad is much happier.
Your comment implies that the lad should be driving the £2,000 banger, and not taking finance?
If it were my lad, or even your lad??
Wouldn't you rather they were in a safe car?
Trevor555 said:
If you've never bought a car on finance then I guess you've always had a bit of money in the bank?. Good on you, nice position to be in.
But finance has enabled the more "less off" people to buy a decent, reliable car, and pay a monthly payment for it.
My lads friend for example, he only had a couple of grand to buy a car.
Couldn't find anything decent for a couple of grand, so ended up using that as a deposit, and paying £300 per month.
He's got a decent car, that shouldn't leave him stranded on the side of the road, and has some decent modern crash protection, his dad is much happier.
Your comment implies that the lad should be driving the £2,000 banger, and not taking finance?
If it were my lad, or even your lad??
Wouldn't you rather they were in a safe car?
It's not the 1970's anymore. Modern cars are phenomenally reliable, provided they are maintained then i wouldn't worry about being stranded. Maybe I've been fortunate but I've owned a K-series engined Lotus, wankel Mazda and 4 different 10 year+ old Alfas and I've never been stranded. But finance has enabled the more "less off" people to buy a decent, reliable car, and pay a monthly payment for it.
My lads friend for example, he only had a couple of grand to buy a car.
Couldn't find anything decent for a couple of grand, so ended up using that as a deposit, and paying £300 per month.
He's got a decent car, that shouldn't leave him stranded on the side of the road, and has some decent modern crash protection, his dad is much happier.
Your comment implies that the lad should be driving the £2,000 banger, and not taking finance?
If it were my lad, or even your lad??
Wouldn't you rather they were in a safe car?
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