3 Practical Tips when You Plan to Buy a Car with Cash
Car financing is so common that people hardly think of buying a car with cash. Even dealers encourage car loans and have attractive auto loan schemes obviously because they earn commission or rewards when you take a loan on their recommendation. However, they are not very excited when you wish to buy a car with your cash. But it’s a beneficial option for you since you don’t have to pay additional money other than the car’s price and won’t have a financial burden. Here are a few practical tips when you consider buying a car with cash.
1. Do Research
It’s a good idea to research about various car models and makes and decide which car you are interested in before visiting an auto dealer and buying a car. There are so many ways to research such as the internet, asking your family and friends, thoroughly checking and comparing features and prices, and checking all available options and then to end up setting your heart on a particular car. Once you do this, things become easier at the dealer’s office.
2. Don’t Show the Salesperson that You Want to Pay Cash
While looking for cars at the dealership, don’t disclose to the salesperson immediately that you wish to pay cash for the car. If he asks you how you want to pay, you can tell him that you will decide that once you choose a car. Once you choose the car, test ride it and check its features.
The reason behind not letting the dealer know that you are going to pay in cash is that once the dealer knows that they will be missing out the huge commission from the car financier, they will try to compensate that loss in the car price and you’ll have to pay more. Therefore disclose your mode of payment only after negotiating the price.
3. Negotiating the Price
Once your car selection process is over and you find out the cost, approach a senior person in the dealer’s office and talk to him about your plans. Tell him that you’ll buy the car immediately if he offers you the best price. Cash payment option has a certain amount of discount which you have to tactfully extract from the dealer. Tell him that you want to drive home the car the next day, so that he’ll have the opportunity to clear out one car quickly from his lot.
So, are you ready to bring home your favorite car by paying hard cash?