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Originally Posted by lupindub
I am actually planning on buying it with straight cash, no finance - thank God. As a former salesman, would you say paying in cash is favorable or un-favorable? Is cash a negotioable tool, as in, would they lower the price of the vehicle if someone pay's all in cash?
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In my experience it doesn't really matter if someone is paying in cash or credit but you will be simplifying the purchasing process a million times over. The dealer, salesman and the finance manager get kickbacks from the banks for a finder's fee so they actually make more money from you financing through them (just FYI.)
If you're going all cash then try to bring some ammo with you and be reasonable and logical. Bring in the KBB on a car that is the trade in on the vehicle and say "This is probably what you guys paid for it." Then add in some detail moneys and fees (Good detail is about $250 - $300 and some other random fees for title transfers and such) then ask them to meet you halfway so that they can make a little bit of money and you get to save a little bit of money too. High volume dealers care more about moving vehicles rather than making lots of money on each one. Be honest and straightforward with your salesperson and ask them if they prefer to move a lot of cars every month on 'mini-deals'. Mini-deals are the minimum commissions they can possibly make on a car sale and usually equate, depending on dealership policies which vary, to $50 a vehicle up to $200 a vehicle.
Also print out a sheet for private party buy and some examples of how much people are selling them private party. Explain to them that you could just as easily purchase a car from a private party and detail it yourself to meet the same quality as the one they're offering and that you'll probably be getting more for your money. The only thing that they can possibly say to justify the pricing difference then is if it's a CPO (Certified Pre-Owned) which comes with a very great extended warranty. CPO warranties typically add between $1k and $1500 on top of the price. But also remember most factory warranties are transferable and if you plan on hardcore modifying your car then a warranty is probably the least of your worries.
Use all of these points in your arguments and stand by your points of views. If they counter-act with dumb arguments such as "Well, we gotta keep the lights on." Then you counter with "Well, what about keeping my lights on at home?" Worst case scenario: You buy the car after a couple hours of negotiation saving you a couple hundred dollars. Best case scenario: You buy the car after a few minutes of negotiation saving you close to a thousand dollars.
Remember that their sales tactic is 'ABC: Always Be Closing'. What that means is that they are always closing down outs and arguments that you might have about paying a certain number. You can play this game with them as well and you have evidence (If you printed these papers and prepared arguments and brought them with you) to support what you say and by using logical arguments you shut down their reasons for charging you more.
Good luck! Hoped this helps!