Cash and Car Dealerships: What You Should Know
Everyone has been told at some point when looking for a new car, “bring cash; they can’t resist cash,” or something along those lines. We’re here to tell you what you should know when it comes to cash and car dealerships.
Can You Pay Cash For a Car At a Dealership?
While the answer to this is yes, you shouldn’t assume that you will get any sort of special treatment because of it. While cash may have been more enticing when our society used cash as our main form of payment; the truth is dealerships don’t care about cash anymore. Dealerships will get their money one way or another and they’ll get it quick. Our society has essentially become a cashless society, utilizing credit and cards more than dollars.
Why Did People Think Cash Helped?
Many people assumed that because the dealership would get their money immediately, they wanted people to pay in cash. The dealerships don’t have to worry about late payments, deferrals, or non-payments. Nowadays, dealerships make more money off interest from car loans, warranties, and several other things that completely offsets the benefits of customers paying in cash.
Will Car Dealers Give a Discount for Cash?
This used to be the way that things worked. They wanted your money, so they’d give you a car dealer discount for paying cash. Nowadays, this is far less common because of the prevalence of new car loans and the way that they work.
How Car Loans Work
What happens when you take out a car loan is the dealership acts as the middleman working on your behalf. They arrange the loan with a lender, take out a fee, and then have the car paid for. Now, you’re on the hook for that car. The dealership makes a profit from the fees you paid for the loan, and the lender gets their money back plus interest. Either way, the dealership is profiting because they got the money you paid for the car, plus the fees from your loan.
Ways Other to Pay Other Than Cash at Car Dealerships
There are a couple of different ways that people can use the services that dealerships provide to help pay for a new car.
Most dealers will accept trade-ins. This where the customer can trade any car in any condition that they own to the dealership in exchange for a credit on their new vehicle. The amount that they get credited on their new vehicle can vary dramatically based on the profitability of their trade-in, its current market value, and several other factors dealerships consider. Customers of dealerships should never expect to get market value. Dealerships will make it seem they are giving you a good deal, but they will make up the difference somewhere else in the sale.
Trade Your Car for Cash
While less common, some dealers buy used cars for cash. If you’re in the market for a new car, this isn’t typically what you would do because you’d often get a better deal on your trade-in. There are some circumstances where it is better to sell your car to the dealership than to trade it in. For example, if there is a special financing offer on certain brands that’s no longer eligible for cars that are part of a trade-in deal, you could sell your car to the dealership for cash instead. You can then turn around and use that cash as your down payment, or first payment on the new car. It is always important to figure out how certain circumstances will playout and how to take advantage of them.
Dealerships Don’t Have Your Best Interest at Heart
All-in-all, it is important to remember that dealerships don’t have your best interest at heart. They will do whatever they can to make a sale and make you feel like you got a good deal. Salesmen get a commission for each car they sell, so they can’t afford to lose one! There’s a reason why dealerships have such a negative connotation and why people hate buying new cars or selling their car to a dealership. It’s exhausting. So, why not try something else?
Forget Dealerships That Buy Old Cars, Use CashForCars.com!
If you want cash for your old car so you can put a down payment on a new car or make next month’s car payment, try CashForCars.com! Like car dealerships that buy a car near you, CashForCars.com has almost 200 locations all over the United States and you can find us just about anywhere! The difference is that we aren’t a dealership. That means:
- No slimy salesman tactics
- Absolute trust in us
- Customer service that can’t be rivaled
- No intimidation
- No contracts
- Always have the customer’s best interests in mind
If you’re tired of spending 3 – 4 hours talking to salesman after salesman about getting the best cash offer from a car dealership, then try our instant online quote and see how much you can get for your used car! Forget dealerships, CashForCars.com will give you a competitive price, free pickup, and the best customer experience in the auto industry!
To read more about making extra cash and getting cash for your car, go here!