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Cash is no longer King...

Old 06-09-2019, 03:51 AM
  #21  
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Originally Posted by RMSail View Post
My buddy owns a buy-here-pay-here type place. No vehicle over $10k.

They take a down payment, sell the car, collect a few payments, then when the new owner defaults, they go repo the car, then do it all over again. Quite profitable.

I have two good friends that do this in NJ. They sometimes sell the same car 6 times!
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Old 06-09-2019, 04:08 AM
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Originally Posted by WeeKilt View Post
Been out shopping for two weeks now for a "new" replacement "truck" to my 96 Pathfinder with 306K miles (which still runs and looks great so no hurries). Had a budget of $10K and fairly flexible on what I looked at as long as no heavy damage, salvage, mechanical issues or "Hershey Bar" paintwork. I'm a pretty saavy mechanic, NEVER buy new or late model used, and just look for the deal. After two weeks of disappointment after disappointment and a real eyeopener about current Nissan/Toyo/Infiniti/Lexus 4WD SUV pricing within 200 miles of me, actually lucked up on the unicorn - 06 one owner 4WD QX56 for $9K within 50 miles of my house. I just wasn't willing to pay that. Test drove, loved and came back with $8k in cash - laid out in a wad on the desk. They said NOPE. I asked why not?

"We make more when we finance it! Just give us $2K of that and finance the rest."

I left.

They DIDN'T follow me or call.

Cash ain't king. Making money off of somebody's cash is king.
That dealer simply knows that when financing $9k he will be able to 'sell' that vehicle two or three more times before it's actually gone.
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Old 06-09-2019, 04:15 AM
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unless the seller is going finance it himself, it is all cash. Don't care if you get it from a bank or a shoe box in your garage....before the item leaves...seller has his cash.

I think what I have noticed is...it is hard to get car dealers excited anymore. Pre-Recession you could get them worked up and really push for a good deal. Now, with less dealers...they just don't seem to get to excited. Maybe it is just me though.
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Old 06-09-2019, 06:09 AM
  #24  
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No, itís not just you.

4WD prices in WNC are artificially high compared to larger markets. They want the finance money - there is no price drop at all when they do that. So... Iíll keep looking. No hurries for me...
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Old 06-09-2019, 06:29 AM
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Bought my 07' QX56 five years ago with 105k on it. One owner trade at Infiniti dealership. They were going to wholesale it since they don't keep cars over 90k on the lot.

Paid 13k. Just turned 220k and haven't had an issue! Best vehicle I have ever owned. Friend just offered me his wife's 2011 Armada with 50k on it for $11,000, but I need four wheel drive.

Keep looking, the deals are out there.
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Old 06-09-2019, 06:35 AM
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Iím not sure cash is actually king anymore either. For me, I run a legitimate business so any cash coming to me gets reported and accounted for, so I honestly donít care how you pay, just as long as you pay full price and quickly. Some people try to say ďoh but what what if I do cash only, can you give me a better deal?Ē And the answer is always no. Just because you paid cash doesnít make my job costs go down. I offer credit card payments online and over the phone, those transaction costs are built into the pricing.

Cash might be king to the shady businessman who doesnít report all his earnings, but for the rest of us, profit is king.
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Old 06-09-2019, 06:43 AM
  #27  
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Originally Posted by WeeKilt View Post
Been out shopping for two weeks now for a "new" replacement "truck" to my 96 Pathfinder with 306K miles (which still runs and looks great so no hurries). Had a budget of $10K and fairly flexible on what I looked at as long as no heavy damage, salvage, mechanical issues or "Hershey Bar" paintwork. I'm a pretty saavy mechanic, NEVER buy new or late model used, and just look for the deal. After two weeks of disappointment after disappointment and a real eyeopener about current Nissan/Toyo/Infiniti/Lexus 4WD SUV pricing within 200 miles of me, actually lucked up on the unicorn - 06 one owner 4WD QX56 for $9K within 50 miles of my house. I just wasn't willing to pay that. Test drove, loved and came back with $8k in cash - laid out in a wad on the desk. They said NOPE. I asked why not?

"We make more when we finance it! Just give us $2K of that and finance the rest."

I left.

They DIDN'T follow me or call.

Cash ain't king. Making money off of somebody's cash is king.
I would of said no as well. If I wanted $8000 for the car I would have had it priced for $8000.
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Old 06-09-2019, 06:53 AM
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Originally Posted by AsurfAholic View Post
Iím not sure cash is actually king anymore either....
Cash might be king to the shady businessman who doesnít report all his earnings, but for the rest of us, profit is king.
Tons of honest businessmen offer a discount for cash to avoid the credit card transaction processing fees precisely because profit is king. Might not be relevant in your line of work. Suggesting theyíre all shady is quite a reach.
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Old 06-09-2019, 06:54 AM
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Originally Posted by ChrisW21 View Post
Read the finance agreement. As long as there isn't an early payoff penalty, finance that bitch and pay it off the next month.
Often times they'll tell you there's no early payoff penalty, but that doesn't mean you get away with only paying one month's worth of interest.

Assuming 48 months at $300 for a car loan, the payoff amount (after making the first payment) might still be $14,100, or 47 payments times $300.
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Old 06-09-2019, 07:01 AM
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Funny thing I know two brothers they manufacture a similar "Product"

One brother (high profile) always said "Not going to happen"

I went to the other brother and Cash was definitely king
an "offer" was made and he accepted ...a hand shake
they built my product ...

Other brother and especially his wife still a hard A$$
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Old 06-09-2019, 07:23 AM
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We tried to buy a pickup from a 'buy her pay here' dealer in Phoenix.
They did not want cash.
Later we heard stories about how shady they can be.
They put GPS trackers on the cars so it's easier to repo .
Many stories about payments being due on Friday and customers calling and asking if Monday is OK, they get a verbal YES
over the phone and their vehicle gets repossessed over the weekend . Weekly payments .
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Old 06-09-2019, 07:26 AM
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Friend of a friend provided a lead on a similar vehicle, so Iíll go take a look this afternoon. Nothing else better to do on a rainy Sunday. This is a private sale, so may be a better deal. Weíll see.
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Old 06-09-2019, 07:59 AM
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The thread should read ď89% of asking price is no longer kingĒ, it has nothing to do with the fact that you laid out a stack of bills on his desk. That impresses nobody unless youíre a rapper.

But good luck on your search, finding a good deal and paying cash is a wise policy.
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Old 06-09-2019, 08:07 AM
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You canít say cash isnít king when it wasnít the deciding factor. They maximize their profit - so they prefer financing. If they didnít take cash - thatís a different story (and some places are trying to outlaw cash. But making the statement that cash isnít king because you didnít meet their asking price isnít an accurate statement.

Hell whatís the difference between someone else walking in and offering 20 and they saying ďnoĒ. And then you coming out and saying - wow - cash isnít king.

You asked for a discount off their asking price. Has nothing to do with cash. IF they had offered to sell it to you for 8k and they didnít accept the cash method of payment - then you might have a case. But that wasnít the case here.
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Old 06-09-2019, 08:08 AM
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Originally Posted by houtxfisher View Post
The thread should read ď89% of asking price is no longer kingĒ, it has nothing to do with the fact that you laid out a stack of bills on his desk. That impresses nobody unless youíre a rapper.

But good luck on your search, finding a good deal and paying cash is a wise policy.
exaxtly. But believe what you want.
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Old 06-09-2019, 08:23 AM
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Considering the stupid-high demand for trucks/SUV/CUV across the board, especially with legendary Japanese branding, I'd say their decision was pretty simple and easy. They know they'll move it and make a higher profit. If you'd done the same with an old Ford Taurus or Nissan Versa, I'm sure they would have considered the offer.

Curious, if/when you sell your Pathfinder, will you accept $1000 under blue book?
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Old 06-09-2019, 08:27 AM
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Originally Posted by chrispnet View Post

Tons of honest businessmen offer a discount for cash to avoid the credit card transaction processing fees precisely because profit is king. Might not be relevant in your line of work. Suggesting theyíre all shady is quite a reach.
i donít believe I said that all of them are shady, but point taken. I think the smart businessman builds all the transaction costs and other costs into the price. When someone offers a cash discount, and you offer a check does the discount still apply? There are no transaction fees for checking deposits. Checks are same as cash to a legitimate business. Most of my experience shows that they donít want a check. They want cash because there's no record. The idea is to avoid the tax, which I totally understand.
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Old 06-09-2019, 08:29 AM
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Originally Posted by TorFed View Post
.........Mortgages are easy to get, and rates are low. ............If/when the economy tanks again, that may change, but there is no more paying 80-90 cents on the dollar because you have cash.
We desperately need higher interest rates to flush out all the BS. Debt free folks must be tired of being punished for not financing everything and having savings.
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Old 06-09-2019, 08:29 AM
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Originally Posted by SOSC View Post
Considering the stupid-high demand for trucks/SUV/CUV across the board, especially with legendary Japanese branding, I'd say their decision was pretty simple and easy. They know they'll move it and make a higher profit. If you'd done the same with an old Ford Taurus or Nissan Versa, I'm sure they would have considered the offer.

Curious, if/when you sell your Pathfinder, will you accept $1000 under blue book?
Iíll never sell it - send it to the grave when itís time as there wonít be much of any value there, but I get your point. I get everyoneís point, and maybe I should have put more thought into how I worded it, but I didnít.

I was a car dealer for a long time. No one marks up used inventory a grand. There is wiggle room there. I was just surprised they didnít counteroffer but I understand why. Just caught me off guard I guess.

Thanks to all who offered a different perspective!
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Old 06-09-2019, 08:32 AM
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Originally Posted by RMSail View Post
My buddy owns a buy-here-pay-here type place. No vehicle over $10k.

They take a down payment, sell the car, collect a few payments, then when the new owner defaults, they go repo the car, then do it all over again. Quite profitable.
For a while in Central Florida, they didn't even have to spend any money on a repo. They reported it stolen after an "extended test drive", and we (LE) recovered it for them.

We finally caught on and put an end to that.
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