"The bank won't let us go down any further?" That's your clue to flick the guy on the forehead, and walk out, not renegotiate with cash. Actually, the "rebate for cash, or 0% financing" choice is makes little difference in the long run, bottom-line, either way, and it has NOTHING to do with the negotiating of the purchase price of the car. If you drop $30K cash up-front into a car, you lose the investment "potential" of that cash. In other words, you could have used that $30 grand to draw interest in a high-yield account, or invest it in an appreciating asset, rather than toss it away on a car that will depreciate. Usually if you pay cash, when there's a "rebate for cash or 0% financing" offer, they give you about $2 grand back (It depends on how expensive the car is or how desperate the factory is, but we'll use this for example purposes). Or, you could finance at 0% for 4 or 5 years. If you figure that you could have MADE $3,000, or more, over that 4 or 5 years by financing 100% of the car at 0% interest and by keeping your cash for yourself and investing it wisely, then you wind up in just the same shape, or better, as you would have by paying cash-up-front. You save no money at all by paying in cash in these 0% financing scenarios. The $2000 rebate check you get for paying cash is nothing more than a flat $2,000 cash-out on your $30,000 today, rather than a $3,000-$4,000 cash earning on your $30,000 over a 4-5 year period. None of this has ANYTHING TO DO with the dealer losing or making money. These rebate-or-0% deals are shouldered by the manufacturers, not the dealers. When a dealer sells a car, they sell it for a set price. If the price is $28,000, then that's what they get, whether you finance or hand them a stack of $100 bills. They get paid what the sale price of the car is, and whatever other garbage they can sucker you into like financing insurance, bogus made-up fees that they hide in the stack of paper you have to sign-off on, paint and upholstery protectants, undercoating, etc.etc... Some dealerships do their own financing, but it doesn't make a difference, unless they are pushing a sleazy deal. You would have to be a knucklehead to finance directly with a dealership.
Anyhow, when I bought my Lincoln LS, Ford was offering 0% financing for 3 years, or $2,000 cash back, direct from Ford. I had the cash to buy it outright, but I instead chose to finance the entire purchase price of the car at the 0% rate. Over that 3 year finance period, doing the math properly taking into account the monthly outlay of cash for payments, I made over $3,000 in interest on that cash by leaving it sit in the bank, not using it up-front to buy the car to get a $2,000 rebate. The dealership didn't make any more, or any less money on the deal. I bought the car for $1,000 under dealer invoice, which is what Ford wrote them a check for when they financed me. If I had not financed, I would have written the dealership a check for the exact same amount.
Also, yes, there's less demand for CL500 Benzes, but... there's far less CL500 Benzes to go around. It's a ratio, and California is an economic nuthouse anyways, there's all sorts of craziness going on out there that's hard to understand! LOL
Anyhow, when I bought my Lincoln LS, Ford was offering 0% financing for 3 years, or $2,000 cash back, direct from Ford. I had the cash to buy it outright, but I instead chose to finance the entire purchase price of the car at the 0% rate. Over that 3 year finance period, doing the math properly taking into account the monthly outlay of cash for payments, I made over $3,000 in interest on that cash by leaving it sit in the bank, not using it up-front to buy the car to get a $2,000 rebate. The dealership didn't make any more, or any less money on the deal. I bought the car for $1,000 under dealer invoice, which is what Ford wrote them a check for when they financed me. If I had not financed, I would have written the dealership a check for the exact same amount.
Also, yes, there's less demand for CL500 Benzes, but... there's far less CL500 Benzes to go around. It's a ratio, and California is an economic nuthouse anyways, there's all sorts of craziness going on out there that's hard to understand! LOL
