Am I going to get a better deal paying with cash when buying a used car?
If you’re buying a used car, knowing the best way to pay is a very important factor in your decision, but what is the best way to pay to get the best deal? We spoke to some of our dealers to find out for you.
1.Does the age of the car affect the deal I will get paying in cash?
“It depends on what car you're buying for cash, if it's a really old car then cash is fine, but if it's something worth financing then finance is better. Not only does the dealer get benefit from the customer financing, but the customer also gets a lot of value for the money as they can add all the maintenance plans, after-market warranty and more.” Janbrecht Van Niekerk, Media Coordinator from Philwest Volkswagen.
2. Can I negotiate a better deal if I am paying cash for my new car?
“Not really, we get paid by the bank if someone buys with finance so in those terms we prefer to finance, it's also a lot more hassle with the bank when someone buys with cash with all the declarations and deposits etc... Cash isn't a big trading card and doesn't quite have the power it used to have.” James Aldhouse, Dealer Principal from Kia Roodepoort.
3. Is cash still king when buying a used car?
“If they're paying cash we do give discounts, cash is still king for me, it just depends on how much we paid for some costs because there are some cars where we give a smaller discount, it just depends on the profit margin.” Jacques Nagel, Dealer Principal from K Mart Klerksdorp.
4. Is there any difference between paying cash or finance?
“It doesn't really matter to me but ultimately if it's a discount that's going to close the deal I will definitely give them something, it's better to give them something than nothing, I don't want to lose a potential customer. That being said, I do not believe cash is king anymore. ” Shaun Van Veijeren, Dealer Principal from Somerset Car Sales in Western Cape.
Our take?
The most important thing is finding the right payment solution for your budget. Found a used car for sale you like? Ask the dealership to explain the available payment options for you.
