My friend is in the market for a Legacy Sedan. He will be paying cash for it. What can he work as far as price goes with buying this car with cash?

TIA
Chris

 

Paying cash doesn't help. The dealer would rather finance the car because they usually get a kick back of a few hundred for sending a loan to a certain bank.

It used to be the case that you get a bigger discount with cash because they didn't have to wait for the loan to fund. But with the instant funding that most big banks do that's not the case anymore.

He is going to be in the same negotiating position as a person that is financing.

 

good point!! Thanks

 

Use other angles, like the condition of the car (if used). Ericdared81 is right about the lack of leverage from cash nowadays, hence the reason interest rates are higher at the dealership then they are at the local bank - becuase of the kick back.

Dealerships have been able to find alternative ways to make a profit, including the above noted financing kick back, accessory add-ons (glass etching, underbody protection), aftermarket or factory extended warrantees, trade-ins value mixed in to purchase price of new car, factory accessories (boost guage, spoiler, fog lights...)