1. Will I get a better deal on a sports car paying in cash?
“I would say yes to a degree but also if there is bank finance involved you've got the benefits of getting a commission from the bank. So yes or no, they can, if it's a car that you want to move quickly, and it's not something that you want sticking around then you might do a deal.” Angus Webber, Dealer Principal from Lemon Garage in Vanderbijlpark.
2. Is it true that it’s cheaper to buy a car with cash?
“No, the attitude we have on the dealership floor as you walk into the deal irrespective of whether it's cash or finance is we will give you the best possible deal. Obviously, we make more money on finance, but we don't walk away from the deal if it’s cash or finance” Luke Bonnet, Senior Sales Representative from Hyundai Tygervalley.
Related: Should I buy a car with cash or with my savings?
3. Can I expect a discount on the advertised price if I pay in cash?
“I do give people a little discount, although it's to my disadvantage when they pay cash. We lose a lot of money when people buy cash, but we encourage them not to prefer one or the other. We still give them a little bit of a discount, but my prices are the prices.” Bertus De Beer, Dealer Principal from Mega Theron Traders in Freemanville.
4. Is finance a better option than cash?
“We do our own finance, we've got our own finance manager, our own F&I, so obviously we'd like to offer customers in-house finance because we do get an incentive from the bank. It makes any deal a little bit healthier, you know, from a profit point of view.” - Jacques le Roux, Dealer Principal from Perdeberg Isuzu in Malmesbury.
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.
