If I threaten to pay cash, would dealer give me lower finance rate??

sameh · 10-15-2014, 05:58 AM

If I go to the dealer and get the price I want then ask for 1.5% on 4-5 years otherwise I'll pay cash now. Would they approve it? After all, they still make more money!!

utsteve98 · 10-15-2014, 09:30 AM

Interest rates are always negotiable. It just depends on the bank. BTW, you can already get 1.5% with lenders such as USAA and Navy Federal. Others may have the same rate.

Tha Baron · 10-17-2014, 08:33 PM

Chase quoted me 1.8% a few months ago... With rates dropping I think a solid rate would be around 1.5% now

Prometheus · 10-17-2014, 08:58 PM

Do it! Report back on the outcome...

Andrew115 · 10-17-2014, 09:04 PM

threaten a dealer with cash? I bet they wish every customer was like you.

Wah · 10-17-2014, 11:27 PM

If you send me $100, I'll send you back $100.01.

My credit is awesome, so no worries about that.
What? You're making money!

sandwi54 · 10-18-2014, 01:34 AM

Dealers would love to take your cash instead of financing. They can use the immediate money to make profit on another car sale instead of getting that fund over 3-4 years.

utsteve98 · 10-18-2014, 02:55 AM

I really don't think the dealer cares. They get the cash whether it's from you or the bank. They may push for BMW financing since that is more money for BMW corporate. That's why they always try to "sell" BMW Finance over your own bank. I would even argue that cash is more of a pain to them than regular financing since now they have to report to the IRS of a cash transaction that is over $10,000. Just another piece of paper to deal with. But hey, you saved them paper on the finance contract.

jayyp · 10-18-2014, 12:48 PM

Quote:

Originally Posted by utsteve98

I really don't think the dealer cares. They get the cash whether it's from you or the bank. They may push for BMW financing since that is more money for BMW corporate. That's why they always try to "sell" BMW Finance over your own bank. I would even argue that cash is more of a pain to them than regular financing since now they have to report to the IRS of a cash transaction that is over $10,000. Just another piece of paper to deal with. But hey, you saved them paper on the finance contract.

Well said. The dealer couldn't care less if you pay him in cash because they will receive the money in full regardless if it's through financing or cash.

dclowd9901 · 10-18-2014, 02:24 PM

Quote:

Originally Posted by Andrew115

threaten a dealer with cash? I bet they wish every customer was like you.

A lot offer their sales people incentives and bonuses for signing people on financing. It's a huge money maker, even if it's not as immediate as cash.

ES_TRADER · 10-18-2014, 04:29 PM

Quote:

Originally Posted by dclowd9901

Quote:

Originally Posted by Andrew115

threaten a dealer with cash? I bet they wish every customer was like you.

A lot offer their sales people incentives and bonuses for signing people on financing. It's a huge money maker, even if it's not as immediate as cash.

That's right, Bmw isn't just a car maker, they're also bankers.

Andrew115 · 10-18-2014, 05:51 PM

Quote:

Originally Posted by ES_TRADER

Quote:

Originally Posted by dclowd9901

Quote:

Originally Posted by Andrew115

threaten a dealer with cash? I bet they wish every customer was like you.

A lot offer their sales people incentives and bonuses for signing people on financing. It's a huge money maker, even if it's not as immediate as cash.

That's right, Bmw isn't just a car maker, they're also bankers.

Just saying the title sounds funny to me. Threaten them with cash.... That translates into a sale either way.

absoluteis350 · 10-20-2014, 02:23 PM

Quote:

Originally Posted by Andrew115

Just saying the title sounds funny to me. Threaten them with cash.... That translates into a sale either way.

His point was that they make less money on the transaction if he pays cash rather than finances. Or to put it another way, he is threatening them with the prospect of making less profit.

That's what the discussion point should be, so everyone is on the same page.

10-15-2014, 05:58 AM	#1
sameh Lieutenant Colonel 171 Rep 1,530 Posts Drives: 2015 Porsche 911S Join Date: Aug 2010 Location: Texas iTrader: (0)	If I threaten to pay cash, would dealer give me lower finance rate?? If I go to the dealer and get the price I want then ask for 1.5% on 4-5 years otherwise I'll pay cash now. Would they approve it? After all, they still make more money!! __________________ 2011 E92 JB/BL/DCT--->80K Miles 2015 F80 SS/SO/DCT?->28K Miles 2015 Porsche 911S
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10-15-2014, 09:30 AM	#2
utsteve98 Private First Class 129 Rep 195 Posts Drives: 2019 M5 Competition Join Date: Sep 2014 Location: DC iTrader: (0)	Interest rates are always negotiable. It just depends on the bank. BTW, you can already get 1.5% with lenders such as USAA and Navy Federal. Others may have the same rate.
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10-17-2014, 08:33 PM	#3
Tha Baron Private First Class 18 Rep 106 Posts Drives: 2015 M3 (Fall 2014) Join Date: Jul 2014 Location: United States iTrader: (0)	Chase quoted me 1.8% a few months ago... With rates dropping I think a solid rate would be around 1.5% now __________________ Cheers, Jon 2017 Honda Accord V6 Touring Black \| 2015 F80 M3 Silverstone Metallic (Sold) \| 2013 328i Black (Totaled)
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10-17-2014, 08:58 PM	#4
Prometheus New Member 0 Rep 19 Posts Drives: ATP-powered locomotive Join Date: Oct 2014 Location: 38°24'32.0"N, 121°22'14.5"W iTrader: (0)	Do it! Report back on the outcome...
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10-17-2014, 09:04 PM	#5
Andrew115 Major 328 Rep 1,450 Posts Drives: Silver Bullet Join Date: May 2013 Location: Charlotte NC iTrader: (0)	threaten a dealer with cash? I bet they wish every customer was like you.
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10-17-2014, 11:27 PM	#6
Wah IG@i.am.wah 2780 Rep 3,815 Posts Drives: M2 CS Join Date: Jul 2009 Location: NJ iTrader: (4) Garage List 2022 Tesla Model Y ... [0.00] 1974 BMW 2002 [0.00] 2020 BMW M2 CS [0.00]	If you send me $100, I'll send you back $100.01. My credit is awesome, so no worries about that. What? You're making money!
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10-18-2014, 01:34 AM	#7
sandwi54 Major 539 Rep 1,201 Posts Drives: G07, F90 Join Date: Sep 2014 Location: California iTrader: (1)	Dealers would love to take your cash instead of financing. They can use the immediate money to make profit on another car sale instead of getting that fund over 3-4 years. __________________ 2022 X7 M50i Phytonic Blue 2019 M5 MBB (wife's DD)
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10-18-2014, 02:55 AM	#8
utsteve98 Private First Class 129 Rep 195 Posts Drives: 2019 M5 Competition Join Date: Sep 2014 Location: DC iTrader: (0)	I really don't think the dealer cares. They get the cash whether it's from you or the bank. They may push for BMW financing since that is more money for BMW corporate. That's why they always try to "sell" BMW Finance over your own bank. I would even argue that cash is more of a pain to them than regular financing since now they have to report to the IRS of a cash transaction that is over $10,000. Just another piece of paper to deal with. But hey, you saved them paper on the finance contract.
	Appreciate 0 Quote