ffabbroc

I'd like to buy a new SLK 350 and I have the money to buy it without financing.

Can anyone offer any advice since I've never bought a car this way before? I've always had loans in the past but I am a patient man and want to get the best deal on it.

Are dealers willing to work with you in this way or does having the money to buy it outright not really make a difference in the negotiation process?

Also, can anyone recommend any dealers in the Los Angeles area that might be good to talk to?

fredfromny

Many dealers actually make extra profit on chargeback arrangements with lenders, however cash may be king at a smaller low volume dealer.

Duo-Art

I've never financed a car and I've always been able to negotiate reasonable deals. When you go in to the dealership, don't say anything about it being a cash sale. Negotiate your best price then ask if they will do any better for cash. It's worked for me on one occasion.

Julien321

Follow Duo-Art advise and never say I'm paying cash up front because what Fred says is true. Lenders (including MB finance) offer incentives for dealers to use them. A dealer is paying a finance person to do financing and make money for them. So bypassing this step cost the dealer money.

Also another thing to consider. If you can get get less than 5% financing, take the money and invest it and you would likely make a profit and save money on the car.

RoadkingHI

Good plan. I always dress down, shorts/t shirt and try not to look like I even want a car. Last 3 purchases I think I did well as I started with a slick saleman not having time to spend with me and ended up being able to pick a good salesperson. (There are some dumb ones out there..... not true, actually there are a few smart ones out there.)
Also never tell them how I wanted to pay for the car. I always tell them I am only interested in the out the door price. I usually get a better deal at the end when I offer to write a check by asking "How much discount if I pay cash?"

Julien321

I disagree with the dress down approach. Richer more sophisticated and informed looking people always get better service and deals. As a former restaurant owner I know and see this from experience.

evanichka

depends where you live i guess... RoadKingHI is from hawaii. you dont have to "dress up" even when you go to semi-upper class restaurants, i go in my t-shirt, boardshorts, and slippers (or flip-flops as you mainlanders call it)

nasdaqsam

Check out the internet. Many places doing fleet pricing delivered to your door. If nothing else you will get a good feel for bottom line pricing.

I have checked a few. If you want a name or two send me a PM. I'm not sure if is against the TOS to post a link to something like that.

Good Luck

wil_sutton

Dressing down might help at the Chevy dealership, but we're talking about a $50k car. Dress well to be taken seriously.

bigciti

I don't think it really matters how you dress.....let's not be naive..it's the color your money that counts.

Duo-Art

I don't agree about how you dress. A friend of mine who is very very rich, went into the local M/B dealership wearing blue jeans, intent on buying a car. None of the salesmen paid any attention to him. He went to the sales manager and introduced himself then informed him that he was buying his new S-500 elsewhere. You don't have to dress fancy but at least give the impression that you can afford a M/B.

cjmegha

Hello,

I would tell the dealer to finance, then pay the loan off within the first month, here is why:

1) Dealer usually will get some cash back on the back-end: IE This is just a example with round numbers: You finance the car at 5.5% the dealer will sell this loan to a bank, when they sell they will receive .5% of the intrest (Remember this is just round numbers) The dealer will offer you a better selling price because they will make it up on the back-end. FYI- MBCredit interest rate sucks.

2) When you say "Cash Deal" they might not negoiate a better price because they will not make it up on the back-end.

3) Remember the dealer is just that "A Dealer" they will look for the biggest profit margin. whether cash or finance.

Good Luck

bigciti

Not so sure you'll get a better deal by doing as you suggest. I find the best way is to come armed with all the prices....dealer cost, MSRP, cost of options. This way you know what the car cost the dealer..most importantly don't forget the dealer (in the case of MB), has a 3% holdback from mercedes of the MSRP, that is never revealed to the buyer. That means even if the dealer quotes you their cost for the car(say 45K), they still get a $1500 profit.(3% of MSRP of say 50K). Many of you know that some MB dealers will not sell below MSRP. Being aware of this, I negotiated 2k off MSRP and truly believe I could have gotten another $500 off If my wife wasn't so impatient. Bottom line...know your facts before you buy.