Your Yaris Cash Deal Stories???

[paguy717]

Anybody have stories about buying their Yaris in a Cash Deal at the dealership? I love how dealers act when they hear you are paying in cash with no financing! Freaks them out! Cant add on too many rip off fees and cant stick you. I bought my 2009 Toyota Yaris 3 Door Auto Liftback last year for $12,140 Out the Door Cash with No Trade Ins or Financing. Taxes, tags, all fees including in that. Best deal I could find! Basic car with the Weather and Convenience Package. It was actually suppose to be $12,100 Out the Door but they stuck an extra $40.00 "tag fee" in at the last second. Anybody have good stories? :smile:

[paguy717]

Looks like nobody pays with cash..or at least got a great deal!

[nemelek]

I always pay cash. The last time I didn't Dodge was offering $1,000 off if financed through their credit company. Then I made one payment. To make a clean deal with out a trade in or financing is the way to go. I am not sure of the % today but 6 years ago I had a neighbor who was a finance manager at a dealership. He stated that 5% paid cash, 55% leased and 40% financed. Their dealership made a lot of money on leased vehicles.

It takes awhile but to live on Yesterday's money instead of tomorrows money is a great place to be in life.

[paguy717]

100% agreed. Not having any car payments is such a relief! I hear the Repo horror stories from friends.

[YAR1S]

I bought my 07 yaris in the summer of 08 from a guy off craigslist who had put 30k on it with driving for work.

I paid him 11k in cash and he drove it to me from about 200 miles away :)
Its an auto with all the bells and whistles, clean title, and immaculate.


I only buy with cash, makes it so much easier.

[Roscoe]

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

[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. :smile:

[paguy717]

Hi RedRide, You must have untouchable credit! Most people cant get 0% financing. Dealerships make most of their money on financing. A lot of the dealerships that I called looking to do a cash deal would be EXTREMELY RUDE when I mentioned it would be all cash and no trade ins or financing. Others just brought the price up by a few thousand dollars more then my lowest price. Unreal.

[RedRide]

Yes, I do have excellent credit but, that has little to do with it.

A dealer wants to sell a car and how you pay for it is irelevent for the most part.
Granted, Toyota can make more money if you finance through them.
However, the local dealer is out of the loop on this and the finance charges you pay go to "TFS " which is a seperate corp just like GM has their GMAC

If a dealer charges youy more for cash, he is BSing you and using it as anothe bogus excuse to raise the price.

The "trick" is to negotiate a final price before discussing how you are paying for it.
There is no discount for paying cash and it is all the same to a dealer as long as they sell you the car.
The dealer gets the same amount no mater how you pay for it.

BTW, the dealer would just as soon let you finance it yourself though your local bank as long as they make the sale. However, the person handeling the financing will push TFS because it is much easier for them and they are told to stay within Toyota's TFS if possible as I believe it one of the requirements of their franchise to do so.

Buying a car is always a buyer's market and you hold all the chips!

[SilverGlow]

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. :smile:

You're abit neive about the car business.

It matters a TON to the dealership how a customer pays for the car. You really think the dealership is out of the loop on financed deals? You act like you know the business, but you don't even know as much as my dog...you should be embarrassed to read your spew on this subject. The dealership gets a cut of new finance business they give banks, and other loan companies...surely you're not so inexperienced on this, are you? Maybe you're just joking, right?

The dealer would MUCH RATHER arrange the financing then for the customer to find it someplace else themselves...I love how you spew like you know what you're talking about, but it is self evident that you no nothing about the car business.

When financing a car, the dealer can and will play all kinds of tricks to force the buyer to buy extras, like lowering the interest rate if they do, or increasing it if they don't .

Often, dealerships would rather a customer NOT pay cash...they make a LOT more $$ off those that finance.

Oh, and that $ you have in your interest bearing account? Big deal! 1% or 2% is a joke. In this economy it would be far better to just pay the car off if you can, so that if there comes a crisis in your life, no worry for the car payment.

[auxmike]

@ SilverGlow:thumbsup:

[frownonfun]

yea thumbs up to a complete asshole... it's one thing to correct someone but damn no need to be rude in the process.

Edit: oh and i'm not sure if that was a typo or not but it's actually spelled naive.

[mr9865]

i would have to side with frownonfun

[RedRide]

I'm certianly not going to get into a pissing match with an inmature individual who can't keep his eye on the ball and does not even know what game they're playing.

A dealer wants to sell a car any way they can and it really does not make to much difference how someone pays as as long as they sell the car.
Any dealer who does not have this mind set would not be in business very long!

BTW, does "someone" have some proof that a Toyota dealer will get a "cut" from TFS?

[RABYARIS]

I'm certianly not going to get into a pissing match with an inmature individual who can't keep his eye on the ball and does not even know what game they're playing.

A dealer wants to sell a car any way they can and it really does not make to much difference how someone pays as as long as they sell the car.
Any dealer who does not have this mind set would not be in business very long!

BTW, does "someone" have some proof that a Toyota dealer will get a "cut" from TFS?

I used to believe this too. I have learned that the dealers are really making money on what they car add onto the car and not the car itself. Loan interest, fees, navigation, extended warranties & etc. is where they make their money. I have found that paying cash has gotten me a cold shoulder from dealers at times. I think part of the issue is that cash buyers are more critical of the price they pay and try to get the lowest price. Loan buyers often get fooled by the "what monthly payment are you looking to spend."

[why?]

While SilverGlow has always been a complete jerk, his information is correct. Dealers get a kickback for everything they sell.

If they didn't, why would they bother?

It is the same thing for all dealers. Dealerships are individually owned, so why would they do something for free?

[TEHxFALLEN V1.2]

My dad paid close to $17K for the Yaris out the door.. 60K/5 Year service plan included.

Looking back now, that was a hell of a lot of money.

And I was asking for an STi for my first brand new car lol.

[frownonfun]

Idiots stick together ;-) Go get the facts, then feel like an idiot some more ;-)


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.

All that aside, the internet isn't nearly as anonymous as you think. so don't attack me again in the forums. thanks.

[tomato]

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

+1

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. :smile:

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]

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?]

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. :wink: