How much would a dealer accept for a discount if I pay in cash?

If the car is $25,000 can I offer $20,000 cash up front for the car.

21 Answers

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  • Anonymous
    1 month ago

    Depends on the dealer and your negotiating skills.  

    Dealer's don't just make money off of the sale of a car.  They make money off of financing and other "extras".  You may find that many dealers may actually not negotiate as much with a cash deal as they would if you were financing.  

    You may want to think about negotiating the best deal you can without mentioning how you are going to pay for it.  You may also want to consider if you can get a better deal financed, then finance it.  And then immediately pay it off.  It may cost you a few hundred dollars in interest, but that may still work out better.

    What ever you chose you should always run the numbers to see the entire situation.

  • L
    Lv 5
    2 months ago

    This is up to the auto dealer - NOT you.

  • P
    Lv 7
    2 months ago

    Most dealerships won't allow anyone to purchase a $25k car on a credit card and they get cash instantly from the banks they finance car loans through so surprisingly they care very little about offering you much of any discount for a cash sale.   In general cars are priced at dealerships are mostly based on how long it's been sitting on the lot.  With internet prices dealerships negotiate very little if at all.  

  • 2 months ago

    Not 20% most likely.  

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  • 2 months ago

    They make money off the finance charge. 

    Why would they lose commission and finance money for cash

  • 2 months ago

    You can offer, but often the dealer makes more money on the interest on car payments than they do on the car itself so they may not be able to bargain much. 

  • Foofa
    Lv 7
    2 months ago

    Probably depends on how desperate the dealership is right now. 

  • 2 months ago

    Sure, you can offer $20k cash.  With credit readily available to so many car buyers that costs the dealer very little, why would they offer a cash discount?  If someone used a credit card and the dealer had to pay the 2.8% or so charge, the dealer would factor that into the deal, and not lose anything.

  • 2 months ago

    Find out on your own what a car is worth.  Try Kelley Blue Book, www.kbb.com and get a value.  You can also look to see what similar vehicles are selling for, www.cars.com and www.cargurus.com.  If the vehicle is new, the most you can expect to knock off the MSRP is about 10%.  Or you can look for clearance sales.  In that case you pay the sales price.

  • 2 months ago

    Car dealerships are not just selling cars. They sell financing and make much of their profit from that. Buying a car for cash might get you a discount but everybody who does their homework before buying can get those. 

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