Are there any pitfalls buying a car cash, from a dealer?

RazedInBlack

RazedInBlack
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Sep 4, 2008
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I came across a car that I really like, at a dealer but I don't want to finance it, I'd rather much pay cash.

I've heard that dealers don't like cash sales because its generally not profitable to them. Not sure how this is but I do admit I'm not too clued up in this regard.

Any advice or info I need too know or is buying cash just not advisable?
 

Voicy

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Your money your choice.

Word of advice, don't tell them you're buying cash until you've agreed on the sales price + extra costs.
 

Aghori

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Don't tell them until you have to. Did you get quotes from at least 3 or 4 different dealers for the same vehicle?
 

UrBaN963

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Dealerships prefer finance because they get kickbacks from the finance houses.

Seal the deal, agree on a price, check what “on the road” costs they add (some are legal; some are BS). Once figures are confirmed, then state you’re paying cash.
 

WAslayer

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Buying cash is always advisable and dealers will typically jump at cash sales, as the sale is not on condition of finance, instant money so to speak.. I have had a car sold from underneath me because a cash sale came in while I was taking two hours to get financing documents together..

All other rules still apply in terms of checking the condition of the car etc.. making sure they don't sneak other extras you don't want onto the offer to purchase etc..
 

RazedInBlack

RazedInBlack
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Buying cash is always advisable and dealers will typically jump at cash sales, as the sale is not on condition of finance, instant money so to speak.. I have had a car sold from underneath me because a cash sale came in while I was taking two hours to get financing documents together..

All other rules still apply in terms of checking the condition of the car etc.. making sure they don't sneak other extras you don't want onto the offer to purchase etc..

Ah thanks.

/makes note . . .
 

WAslayer

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Any reason why I shouldn't mention cash as a first option?
Partly negotiation tactic.. if you tell them casj sale upfront, they know you have the money to pay full price and then negotiating for a better price becomes difficult..
 

Dimpie (COMPUTEK)

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I came across a car that I really like, at a dealer but I don't want to finance it, I'd rather much pay cash.

I've heard that dealers don't like cash sales because its generally not profitable to them. Not sure how this is but I do admit I'm not too clued up in this regard.

Any advice or info I need too know or is buying cash just not advisable?

How so, The price on the windscreen already includes their profit ? If they advertise something for R50 and I have the R50 in my hand, what more do they want :p
 

Jola

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How so, The price on the windscreen already includes their profit ? If they advertise something for R50 and I have the R50 in my hand, what more do they want :p

They want the kickback on the finance deal.

I was recently involved with a major fight with a dealer when they tried to renege on the deal when I turned down their finance offer and insisted on paying cash. All the details, price, etc, had already been finalised.

It ended up with me contacting their head office and kicking up a fuss, eventually they, very begrudgingly, let me have the car at the previously agreed price..

The dealers don't like cash deals.
 

K213N

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Jul 14, 2013
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Something to consider: when you finance a car through your bank, it’s the bank handing over their money for a car that belongs to them (not you). Banks do not take kindly to being ripped off and sold lemon vehicles, vehicles with undeclared defects due to being smashed and repaired etc. After all, it’s their property which is how they will recover their money if you don’t pay them back. They have the resources to make the offending dealership hurt very badly.

Here is a guy who ended up in such a situation - he was able to get out of it immediately due to the car being financed and the bank putting its foot down.

Now, what would happen to you if you’d already gone and paid cash? Once that money leaves your account, it’s gone. Should you discover that the deal was dodgy and there’s something drastically wrong with the car, you must now round up your own legal team or hope that the dodgy dealership plays nice. Sure, maybe you’ll come right in the end, but in the meantime you’re hundreds of thousands out of pocket, instead of just a few grands worth of installments.

Financing is worth doing just to benefit from this extra layer of protection. It’s never a bad idea to have a massive corporation with deep pockets in your corner of the ring. If you have the cash, pay off the car a couple months later if you must. After it’s been for a service or two, you’ve driven it a while and you are satisfied that all is well.
 

A3@MBB

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Make sure that you take out comprehensive insurance before taking delivery.
Usually with finance it's a pre-requisite before you get the keys.

Ditto with extended warranty if you choose to fall for that.

and then swipe that credit card for ebucks! :cool:
 

Voicy

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Make sure that you take out comprehensive insurance before taking delivery.
Usually with finance it's a pre-requisite before you get the keys.

Ditto with extended warranty if you choose to fall for that.

and then swipe that credit card for ebucks! :cool:

This is something that infuriates me about RSA. The fact that insurance (3rd party at the very least) isn't compulsary.

Over here in Norway you can't transfer ownership without proof of insurance - and if the cops stop you and you and see that you don't have insurance, they take your car.

To go a bit off the rails:

The upside (aside from the obvious) is that we don't have license disks on our cars. Your annual license fee forms part of your insurance premium, which they then pay over to the state. So no standing in queues or any nonsense. For as long as your car is insured, it's registered...and also has to pass an "EU control" or roadworthiness check every 2 years for it to stay on the road. Luckily all certified dealerships can do this when your car goes in for service.

We bought a used car this weekend, did the insurance and transfer of ownership all online. Everyone with a drivers license has an online account at the national roads agency/traffic dept. So you log in, click you're selling it, enter the person who'se buying it's ID no and then the car automatically appears on their profile for them to accept ownership of it by digitally signing for receiving it.
 

UrBaN963

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Jul 27, 2016
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This is something that infuriates me about RSA. The fact that insurance (3rd party at the very least) isn't compulsary.

Over here in Norway you can't transfer ownership without proof of insurance - and if the cops stop you and you and see that you don't have insurance, they take your car.

To go a bit off the rails:

The upside (aside from the obvious) is that we don't have license disks on our cars. Your annual license fee forms part of your insurance premium, which they then pay over to the state. So no standing in queues or any nonsense. For as long as your car is insured, it's registered...and also has to pass an "EU control" or roadworthiness check every 2 years for it to stay on the road. Luckily all certified dealerships can do this when your car goes in for service.

We bought a used car this weekend, did the insurance and transfer of ownership all online. Everyone with a drivers license has an online account at the national roads agency/traffic dept. So you log in, click you're selling it, enter the person who'se buying it's ID no and then the car automatically appears on their profile for them to accept ownership of it by digitally signing for receiving it.

Please send passport. I like your system better.
 

RazedInBlack

RazedInBlack
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Sep 4, 2008
Messages
36,508
This is something that infuriates me about RSA. The fact that insurance (3rd party at the very least) isn't compulsary.

Over here in Norway you can't transfer ownership without proof of insurance - and if the cops stop you and you and see that you don't have insurance, they take your car.

To go a bit off the rails:

The upside (aside from the obvious) is that we don't have license disks on our cars. Your annual license fee forms part of your insurance premium, which they then pay over to the state. So no standing in queues or any nonsense. For as long as your car is insured, it's registered...and also has to pass an "EU control" or roadworthiness check every 2 years for it to stay on the road. Luckily all certified dealerships can do this when your car goes in for service.

We bought a used car this weekend, did the insurance and transfer of ownership all online. Everyone with a drivers license has an online account at the national roads agency/traffic dept. So you log in, click you're selling it, enter the person who'se buying it's ID no and then the car automatically appears on their profile for them to accept ownership of it by digitally signing for receiving it.

Jeez! Why are we so backward here in SA?
 

chromedome

Expert Member
Joined
Mar 24, 2010
Messages
1,568
This is something that infuriates me about RSA. The fact that insurance (3rd party at the very least) isn't compulsary.

Over here in Norway you can't transfer ownership without proof of insurance - and if the cops stop you and you and see that you don't have insurance, they take your car.

To go a bit off the rails:

The upside (aside from the obvious) is that we don't have license disks on our cars. Your annual license fee forms part of your insurance premium, which they then pay over to the state. So no standing in queues or any nonsense. For as long as your car is insured, it's registered...and also has to pass an "EU control" or roadworthiness check every 2 years for it to stay on the road. Luckily all certified dealerships can do this when your car goes in for service.

We bought a used car this weekend, did the insurance and transfer of ownership all online. Everyone with a drivers license has an online account at the national roads agency/traffic dept. So you log in, click you're selling it, enter the person who'se buying it's ID no and then the car automatically appears on their profile for them to accept ownership of it by digitally signing for receiving it.

I actually just bought a vehicle cash and part of the paperwork before I could take ownership was to either pay for temporary insurance organized by the dealer or to provide proof that I had insured the car myself.
 

chrisc

Executive Member
Joined
Aug 14, 2008
Messages
9,635
Once had a big row with a dealer who wanted R3600 for "On the road fees" on a new car costing R550k

They would not budge, so I left the showroom. The following week the salesman calls, wanting to know if I wanted to proceed

He went on and on about it being difficult, a big waste of time and talked non-stop for 15 mins. I said that if he cancelled the fee, I would buy it. I got the usual "I will see what I can do story". 3 days later he agreed

I got a friend who deals in used cars to collect the paperwork, get number-plates and licence it. Total cost (including a R100 tip for his guy) was R800. He did the job in 90 mins

Then the dealer tried to bill me for fitting the number-plates. He reckoned the rivets they use are stainless steel and cannot be drilled. This was R550,00. The actual rivets are made of aluminium

Why do these dealers have to duck and dive so?
 
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