What's the standard procedure for paying cash when you buy a car?

Discussion in 'Teacher Time Out' started by Sarge, Jul 27, 2012.

  1. Sarge

    Sarge Enthusiast

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    Jul 27, 2012

    Can I just write a check?

    Do I need to run to the bank and get a cashiers check or money order?

    Big suitcase full of money?

    Ideally, I'd like to use the credit card that gives me British Airways miles, but we actually tried that once and they said no.

    I want to go in and say "I'll give you $12000 plus my trade. Right now, this instant. Take it or leave it. And no, I don't care about a low interest rate, because my interest rate is going to be zero because I have all the money I need to pay for the car."

    Sorry, my monthly payment is going to be zero because I'm just going to raid the college fund of my non-existent children.

    I was really hoping that I wouldn't have a trade to deal with because that buggers up the deal as well - they discount the car, and then lowball me on the trade, or visa versa. Luckily, I have a trade that some dealers might be able to make some money on.
     
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  3. giraffe326

    giraffe326 Virtuoso

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    I worked at a dealership and receipted all down payments. Checks or cashiers checks work. Usually with a large amount, people use cashiers checks.
    Where I worked, our credit card machine would only process $1000 at a time. We would do separate transactions, though. However, it does cost them a fee for each transaction, so I can see why they would say no.

    As far as your trade, used car sales are up right now. I was pleasantly surprised at how much they gave me for my last car when I traded it in (and this was just back in January). It can really vary from dealership to dealership, though.
     
  4. Sarge

    Sarge Enthusiast

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    Unfortunately, I didn't get any love from Carmax yesterday. The Kelley Blue book on my 2000 Accord is around 5k, and I see dealers asking 7k and 8k for ones with more miles than mine. They offered me $3500.

    My plan was to have the Carmax offer to fall back on.
     
  5. mollydoll

    mollydoll Connoisseur

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    Can you call your credit card and ask if they will issue a check? Some will.

    When I bought my Harley, I got a cashiers check from my credit union. The dealer faxed over the invoice and then they had the check waiting.
     
  6. agdamity

    agdamity Fanatic

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    I have a few friends who have bought cars with "cash", and they have always written a check. It has given them more bargaining power because the dealership is being paid in full up front. You can always ask the specific dealership if they prefer a check or a cashier check.
     
  7. ku_alum

    ku_alum Aficionado

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    We've written checks.
    (We also have that non-existent child college fund).

    Keep looking, you can get more than $3500 for an Accord, I got $5000 for my Civic.

    Does it work for your situation to sell the Accord on your own?
     
  8. JustMe

    JustMe Virtuoso

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    We just wrote a check.
     
  9. janlee

    janlee Devotee

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    My son just purchased a car. I put it on my credit card because I get cash back on purchases. It was a significant amount (over $9000) and there were no problems at all. I told my son he can have the cash back money once he gives me a check (which he has done).
     
  10. tracykaliski

    tracykaliski Connoisseur

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    I wrote a check when we purchased our car in December of 2010.
     
  11. geoteacher

    geoteacher Habitué

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    Jul 27, 2012

    We have always just written a check.
     
  12. Ima Teacher

    Ima Teacher Maven

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    Jul 27, 2012

    I wrote a personal check. My ex-husband had a cashiers check. My mom put hers on her Discover card and racked up the reward points. (She paid it off when she got her bill.)
     
  13. Blue

    Blue Aficionado

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    Jul 28, 2012

    First, wrangle a good deal. Then, ask them how much of a discount you can have for cash.
     
  14. bison

    bison Habitué

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    This. Then write a check.
     
  15. Ranchwife

    Ranchwife Companion

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    My in-laws walk into a dealership, ask for the owner, and state up front they will be paying in cash and blatently state they expect a deal. They end up saving a couple thousand on new pick-ups and cars. My husband and father-in-law do this on farm equipment and save $5000-$10,000 on tractors, etc. They use personal checks. It doesn't take long to check to see if there are actual funds behind a check.
     
  16. Linguist92021

    Linguist92021 Phenom

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    When you go in, first deal with the trade. Let them know you need to know up front how much they would give you, and then deal with the new car. When talking about the new car, you might not even want to tell them up front that you're paying cash. Let them bring down the price, but tell them you're the type of person who likes to think in bottom line price: you don't care about interest rate, monthly discount, have them tell you how much overall discount you're getting off of the sticker price. At this point they still think you're financing it.
    Then when you have the lowest price you think they'll go, ask them for how much discount if you pay cash right now.

    I used to work at a car dealer, a long time ago. I'm sure lot of things changed, but a few probably are still the the same:
    - most buyers go in there with their guards up.
    - people who go there saying they want to buy a car, ready to pay, are often not taken seriously, because it sound to good to be true, and it often is. But not always. Usually these people have issues with financing, not really committed and will change their mind, etc. (When I was ready to buy my Chevy Camaro, 20 K, brand new, of course it was financed, but I had the loan from my bank. I was 21, went in, said i already looked at cars, this is what i want. they did not take me seriously. 3 hrs later, when I rolled out with the car, the salesman probably still didn't believe it).
    - Car salesmen get a certain percentage over the overall car price and over the down payment. So if you paying cash, the salesperson will have a nice commission, so you should hold on to that bargaining chip.

    It was amazing to see how much the mark up was on each car. a 20 K car had 4 K wiggle room, that's just what we, salespeople knew. I'm sure the manager could give an even bigger discount, especially at the end of the month when every sale counts. If you go in now, before the 31st, I think you can get a better deal than you would on the 1st.
     
  17. Sarge

    Sarge Enthusiast

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    Jul 29, 2012

    I gave them a check for $14200 and my 2000 Accord with 72k miles on it.

    In return, they gave me a 2011 Nissan Rogue with 40k miles on it. 100,000 mile powertrain warranty.

    It's cool. The stereo gets louder when you go faster!
     
  18. K1teach

    K1teach Companion

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    Jul 29, 2012

    Congrats on the new car!!
     
  19. bison

    bison Habitué

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    Mazel tov!
     
  20. smalltowngal

    smalltowngal Multitudinous

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    Jul 29, 2012

    Congrats on the new car, Sarge!
     

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