Is the purchase price different if I pay cash instead of financing at a dealership?

The truth is you'll get a better price if you finance through the dealership. A dealer can afford to give you a better price because he'll make it up on the financing. This won't be a huge difference. Maybe a few hundred dollars, plus the savings in tax. But any additional discount helps your bottom line.

Tell the salesman you're financing. Get your best price then tell him you've changed your mind. You'll pay cash instead. And at the price you've been given.

There's a myth regarding trade-ins. A lot of people that are not in the business say NEVER reveal you have one until all the other numbers are worked out b/c you'll get more for it by holding out. B.S.! You'll get the same price for your trade regardless of when you tell the salesman you have one.

The reason you're asked up front abut it is so that the saleman can get the used car manager to appriase it while you're negotiating the price of the new car. This cuts down on the time you spend at the dealer by quite a lot. Almost an hour in many situations. It streamlines the sales process for the salesman. And you'll appreciate how much easier it is on you.

After decades in sales management, I've learned every trick of the trade. And I'm more than happy to pass them along to you.

Hi. Always mention that you're paying cash after you get the dealer to discount the sticker price. Nearly all dealers have their cars marked up so that when you inquire about the car they can make it seem like they are cutting you a big deal by quoting you a price that's less than what the vehicle is advertised for. If you're paying cash, you can get that same vehicle even cheaper than the discount quote they give you, usually thousands of dollars less. Never mention a trade up front either because they'll be less likely to discount your purchase as much and tell them that you're considering going with another dealer if they'll cut you a better deal. I bought a 99 Eclipse a few years back and they quoted it to me for 8000 but I got it for 6500 cash. Good Luck!

Nope. It's all just a myth.

Dealers get their money IN FULL whether you pay cash, credit card, finance or lease.

But they do make much more money when you finance since they get a kickback (bonus) from the bank plus they get to jack up the rate so they steal more money from you.

If a lender says they'll finance you at 9.99%, the dealer can actually jack it up to 12.99% so they get 3% in finance charges (In California they passed a law that capped this at 1%).

So if you want to finance, it's usually better to get financing before you go to the dealer unless you have excellent credit and can get 0% financing.

The dealership is receiving the same amount of money for the vehicle no matter if it's from you or the finance company. The sales associate gets a minor perk if it's in-house financing.

Look the car up on KBB.com to find out what the dealer invoice price is. You should be able to get the car for below the invoice price.

Yes, you should get the price first, then hit them with your trade-in. if they start backing off their original numbers, leave and find another dealership.