Toothdoc and gomer Pyle have it correct. Cash is not much of a bargaining tool. People say it is, but the dealership makes more money if you finance. They get money back from the finance company for every car they finance and they get their money no matter what. They are not getting paid monthly.

If you're working with a dealer, cash is probably a lower bargaining point. Financers will often give the dealers a kick-back on the interest (they're competing for the dealer's business, just like the dealer is competing for your business), so many times the dealer will have a better bargaining position on a finance deal than a cash deal. Like others have said, the dealer is paid when the car leaves the lot either way.

10k didn't help me any when buying my daughters car. Didn't phase them at all. Actually they acted like they would rather not take it.

If they will cut you a better deal if you finance, finance it, and then stroke a check to the finance company to pay the loan off. I haven't bought many cars, but I have never had one that had a penalty for early pay-off.

I've always had better luck buying used from private sellers instead of lots. Car lots get used vehicles in and out like they are going out of style. They have no clue how the car was treated or etc.

I can usually tell how a car was treated by looking at who owned it and is selling it. Of course it is different if the car lot offers warranty and etc.

But yes, I would low ball the Car lot until you get them down to a price you are comfortable at. If they aren't willing, walk away.

With the interest rates that try to use I always thought they must be getting kickbacks from the loan company anyway.

The best way to buy any used car is to research for a month using prices all over the country for that particular make, model and mileage. In other words know exactly what you are buying, exactly what it's worth, and exactly what you are going to pay for it before you ever walk on the lot.

I havent bought a vehicle in quite a while but when we decided to get a Tahoe i had cash and figgered I'd get a helluva deal walking in offering cash.I was shocked at how little they would budge when i mentioned paying cash.I went and looked at 4-5 different Tahoes and they just wouldnt budge but $1-1500k.I ended up buying from Susan Schein and got em down some and made em throw in a 100,000 mile 5 yr bumper to bumper warranty.At first they said absolutely not on the warranty.I told them thanks and walked out.He called about 5 minutes after i left and said they'd split the $1800 warranty cost with me,i told em no.Went and ate and before we left Alabaster he called back and said they'd throw the warranty in so i went back and bought it.Everyone is right on them making money off financing so they'd much rather you finance.Cash is only king if you're dealing with individuals.

Good luck getting a settlement that will replace the vehicle with a comparable one. I don't know why, because there was nothing I could do about it, but people came to my office all the time to complain about this in dealing with insurance companies after accidents.

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I think cash will be a better bargaining tool for fsbo. I've tried to sell cars fsbo and you'd be surprised how many people can't get financed.

Walk up to them, pull out a roll of 100's, tell them what you'll pay, if they don't take it get in your vehicle and drive off.

Cash as on cash or cash as in your going to write a check?

Actual dealership or a private owned car lot?

Which do you suggest? I'll probably lean towards private owned places. Or individuals. Those will probably have more of what we are looking for.

Example: 2006-10 Mid Size SUV 100-150K Miles

If you have green cash, go to a private lot a a ask for the owner when you get there.

Cash speaks loudly under the right circumstances.

I'd say you probably have a better chance at getting a deal at a new car dealer than with a used lot. Reason being - used car lots are there to make money on used cars. New car lots take trades in to sell new cars, not necessarily to make all the profit on the used vehicle. I know of several people lately who have gotten fantastic deals at new car lots.

Find a hungry small car lot dealer and offer him $500 to go to the car sale at Moody with you. Get there early and find 3 to 5 cars you like and figure a price you would be comfortable with. When the cars come thru the sale line you have to be quick and don't hesitate or the car will be gone. They run 5 or 6 lines of cars at a time so you have to watch what is going on.

I did this for my mother once when she wanted to buy a car with cash. There are several books around that will help you accurately estimate the amount the dealer has in a car. I don't remember which but it should be easy to find. Anyway, once I figured out how much the dealer (Jerry Damson Honda in Huntsville) had in the car I went to their lot. Of course one of their salesmen was on me immediately and I sat down with him in his office. I pulled out my calculations and I told him that I believed he had $X invested in the car I wanted. I then told him that if he would take $X + $200 he would have a quick sale and I'd be out of his hair in 5 minutes. Also, that if that didn't seem like a good deal to him I would be on my way. He took that deal and I was gone off the lot in 20 minutes

lol

many people try the "I'm paying cash" card. They don't care because they lose out on financing charges.

I rarely buy a new car but when I do I take advantage of the company finance discount they offer, then you can pay it off and still walk away with an additional 1200-1500 off the price. I usually buy Ford, and the last 2 I bought I got the additional discount for using Ford Motor credit, but their rates are high so I re-financed them for $28 with my credit union. You can do the same thing when paying cash. Not smart to walk away from 1200 that they are throwing at you. I know you are looking at a used car and they probably won't have the rebate on the used ones, but it may help you in the future.

Don't kid yourself, they make good money off of used cars as well. In many cases they make more off of the used cars than the new cars. However, I do understand what you are saying, their main goal is to sell new cars. They get bonuses for selling x # of new cars each month/yr. But they love trades because most people do not know how to trade, so they generally make money on trades that are still in decent shape. That's why I never tell them if I plan to trade. I get the bottom price then I induce the trade into the deal. I do my homework to see what the car I'm trading is selling for so I know what's a good price. I just traded my wife's Equinox and there was 4k difference in the trade price between two dealers and I had already got both of them down to the same price on the car with no trade. 4k difference?? Somebody was gonna make some money on that trade had I not done my homework.