Your Yaris Cash Deal Stories???

[tomato]

Originally Posted by Roscoe

When buying or selling I like the easy payment plan.....100% down

+1

Originally Posted by RedRide

I don't think it make any difference to a dealer if you pay cash or not.

Personally, I also go my '09 2d HB for abour $12500. I paid 8k down from one of my accounts and financed the rest @ 0% interest.

I could have paid the whole thing in cash but, why? The additional money I could have given the dealer is still in an interest bearing account and I'm not paying any interest on the balance.

That was clever.

Myself, I've always paid cash for my cars. However, I started out with beaters, $500 cars. I usually save up first, before buying something. Don't much care for credit and financing fees.

[tomato]

Originally Posted by frownonfun

ok dude that's the second time you've insulted me now. i could care less about the subject at hand. maybe you're wrong. maybe you're right. either way it's irrelevant to me. my point was that you don't need to be so rude. true i didn't say it in the most diplomatic way and for that i apologize. but frankly, for you to come on here and insult me yet again is really unnecessary and childish.
.

+1

I deleted some of the comments and hope you guys can get past this fight and just stay on topic, please.

Silver, you've been warned.

[RedRide]

I was going to refrain from posting any more in this thread but.......

For a $12k car a dealer wiil receive $12k no matter how you finance.
Saying a dealer will raise raise the price of a car if you do not finance through them is like saying that they wiil also raise the price it you do not buy some option like paint sealant, alarm, etc.
It is a not a valid increase and it is simply a blatent attempt to rip off a customer.

I'm still stiil not convinced that a Toyota dealer wiil get a kickback from "Toyota Financial Services (TFS). There seems to be some assumptions involving this so, does any one have a definitive answer on this?

[why?]

Originally Posted by RedRide

I was going to refrain from posting any more in this thread but.......

For a $12k car a dealer wiil receive $12k no matter how you finance.

That statement makes no sense. In what way do you mean? Just for financing? That is simply not true.

How much money a car dealer earns in total for each car sold is extremely variable.

Most dealers have to go through banks themselves for each car on the lot. These payments effect the bottom line, which in turn effects how much money the dealers earn.

Then for every single car the dealer sells, they get a kickback from the factory. Toyota is 3%, the last time I heard. 3% of what you ask? lol, good question. I think it might be invoice price.

The the dealer earns whatever the difference between final payment price and what they paid plus interest they owe to the bank. The price they paid was not the reported invoice price. It is usually less, depending upon the value of the vehicle, current incentives, current bonuses, etc. Usually the only people that actually know what a dealer pays for each car is the dealer themselves. Not the salesperson, the dealer and their accountant.

Then how you choose to pay matter. If you were smart and negotiated final purchase price, and pay cash, what the dealer earned is rather simple.

However most car buyers are not that smart. They negotiate payments, or current car trade in, or other things, and never use the "four square" method, which is overall negotiations, and which dealers teach salespeople to use.

What this means is the buyer is negotiating his financing, in the deal. Without knowing it, and this is where salespeople make tons of money.

Then finance rates come into play. If a buyer is smart enough, they get the number. And the number they first get is not the number the dealership is paying. It is a number they think the buyer will accept.

If they are really smart, they will negotiate that rate down. Yes, this really can happen. Finance people make their money getting people to go with higher rates than the dealership pays. They are usually 100% commission on these numbers.

Then the finance guys have several add-ons to make more money. From warranties to scotch guard protection. These things are pure profit for a dealership.

And then there are those pesky "fees". Every dealer calls them something different, and has a different number. They are all almost completely fake. They can be negotiated. Most dealers will not let them get to zero, but a decent one seems to be $100 or below.

Then the dealership and the salesperson each get a volume bonus for every car sold. These go up depending on the number sold. For example, a salesmen might get $500 a car for selling 19 cars, but would get $550 a car for selling 20 or more. This is why you will get a better deal at the end of the month, everyone is trying to hit that next level.

I think I remembered everything. As for proof, good luck. It is all confidential information, so the only place you will see it is from people who worked in the industry and are remembering it. Factories won't ever let any of the real information into the public's hand. Any dealership worth their salt won't even let any negotiations out of the building. You'll just have a piece of white paper with a few numbers on it. Very unofficial looking. The dealership I worked for had "confidential, do not disclose" printed on every single piece of paper.

[RedRide]

Yes it makes perfect sense. A $12k car is a $12 k car
It goes without saying that if you start to add things on in the process it will raise the price and profits.

My point is it is no excuse to rasie the initial selling price as they will still get the $12k.
I'm supposed to feel sorry for a dealer and let them raise the price because they will not got a kickback from financing if I pay cash? I don't think so.

Yes they would prefer that you finance..... yes they would prefer you get every option they sell.
However, the pime objective is for you to buy the car and in this sense, they don't care how you pay for it.

This dead horse is taking quite a beating here.