General Question on Discounts

The ceramic coating?

wing_zealot wrote:
Why didn’t you just get the credit union financing to begin with?

I was approved at my CU before I even stepped foot into the dealership. By using the dealer's financing I was able to get a better deal, in one instance it money off the top, and this last time they gave me more for my trade (yes I know it's a money shell game). The finance guys use the financing kickbacks to talk you into things like the extended warranty and ceramic coatings. "What if I tell you I can lower your payment AND you can have the ceramic coating!" Forget the coating and just give me the difference in the price.

The only drawback to this scenario is that often you can't refinance until the "official" registration arrives from the state, which can take 30 days or so.

wing_zealot wrote:
Why didn’t you just get the credit union financing to begin with?

In my case, using the dealer financing dropped the price of the car $1500.

It wasn't the lowest interest rate I could have found, but I knew I'd be paying it off right away so it didn't matter.

If I had intended on keeping the loan, it would have made sense to take the discount for using their financing, and then moving it to a credit union as the other poster did.

30-35% off msrp is typical invoice pricing on most new trailers.

Why didn’t you just get the credit union financing to begin with?

rdhetrick wrote:
I'll also add that paying cash might actually be a downside for the dealer. If they get some form of kick-back from the finance company they work with, they wouldn't get that on a cash deal.

When I bought my last used car, I was told that if I wanted the lowest price, I would need to finance it. I could pay it off the first month if I had the cash to do so.

Don't know if this is true in all situations, but it makes sense.

This. Dealers work with certain lenders and get compensation for it.

For the last two cars I bought (one just weeks ago), I got their best price and used their financing. The moment I got home I started the process of refinancing to my local CU. My payment is now lower and the term shorter.

When shopping, I never discuss financing until a price is agreed upon.

I'll also add that paying cash might actually be a downside for the dealer. If they get some form of kick-back from the finance company they work with, they wouldn't get that on a cash deal.

When I bought my last used car, I was told that if I wanted the lowest price, I would need to finance it. I could pay it off the first month if I had the cash to do so.

Don't know if this is true in all situations, but it makes sense.

The fact that your offer is a cash offer has no bearing. The dealer gets 'cash' either way -- either from you or from the lender. Cash-in-hand is usually a good incentive for a private seller, but to a dealer it makes no difference.

A lot depends on the trailer(s) that you are interested in. Are they popular models with popular floor plans? Are they "orphans", models that are being discontinued? You said cash. Money talks.

In the past, one could start with a larger discount in mind, more along the lines of 30-40% off the MSRP. Plenty of folks have done that...in the past. That was then, this is now. Does cash/money still talk?

Start with a bigger discount off. The worst they can say is No and make a counter offer. Be prepared to walk if they are not willing to negotiate. Search here for previous threads about what folks have paid in the past.

And consider buying at the end of the month and if possible late in the day at the end of the month. Quotas may still have to be met and I've used this tactic for buying cars in the past and getting a better than average deal.

Wait a month....prices will be even lower.