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If I am paying cash for my new car, how much of a discount should I expect?

Paying cash for a new car can actually be a disadvantage - and you may end up paying more for your new car than if you chose to finance it through the dealership. That's because dealerships often make more profit from the financing of the vehicle than from the actual sale of the vehicle itself. So if you take away their financing profit, then they'll want to make it up by selling the vehicle at a higher price.

Here are two strategies for buying a new car with cash:

  • Don't tell them that you'll be paying cash until after you negotiate the purchase price. Leading them to believe that you will consider financing with them may help you to negotiate a better deal.
  • Simply be honest. Tell them that you'll be paying cash and that you have your insurance and other details already arranged and all they have to do is give you a great price and you'll drive the car home right now. Always be sure to emphasize that you'll drive the car home now or today. Point out to them that this is a quick easy no-hassle sale that gives them the opportunity to move another car off their lot right now.
Best of luck!

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