^ Hey Tofu, u havent answered my question above regarding the % rates of financing :okay:

% of finance is not decided by us. decided by finance manager/ bank

we are responsible for sale price.

The irony, u call me condescending amongst many other things, but now you want my help!?! Fucking ridiculous

The idea would be that a dollar "tomorrow" (let's say next year) is worth about $0.97-0.98 today, due to inflation of 2-3%, so $0.98, lets say, taken today, invested in something that grows with inflation, which in theory is everything, will be worth $1 next year.

Thus $20k, in this case is worth more than cash flow received over a period of time, as you would get inflation growth for the whole amount, for the entire duration.

This is extremely simplified, but again, all down to time value of money.

U guys have to stop looking at the interest rate and concentrate, instead on the cash flows.

In the real world, the best loans u can get are heloc's (home equity lines), at 3.5% because they are secured by your house - a 2.99% finance deal isn't the same as borrowing at 2.99%, as you're paying more for the car

I'm shocked at the poor level of simple finance in here, especially for people who sell cars, morally you should know what ur selling/getting clients into

If you buy a brand new car you usually lose the cash incentive when you finance with the dealership.

This daredevil chump will never get it, I've given up trying to help.

Some people are just meant to be bottom feeders - like Kyle's dad in South Park says "the world needs both gods and clods" - he's a clod

Oh, I'm a bottom feeder? Ohhhhhhh the irony in that statement is incredible.:lawl:

Behave, children...

I agree, lets keep this thread alive as it educates everyone no matter if you are a car sales guy or a buyer.

good to know the difference between cash price & finance price of a car (even if finance rates are 0%)

anyone else want to chime in?

lol go easy on him.

the guy is like 20, clueless, and degree-less.. easy pickings for u.

Lets hear your side on this Bing, you usually have some insightful posts !!

U guys need to calculate the true cost of things. As mentioned above, there will always be a discount when u pay cash. So u need to factor that in when u calculate ur rates. At the end u may pay less by taking out a 5% loan from the bank than a 2.99% financing from a car dealership. U guys really need to do ur homework. It really frustrates me when ppl buy into the 0% financing bullshit.
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The cash incentive is not always there, ie. For Toyota cash price is $500 less than lease and finance. Toyota does not negotiate on sticker pricing.

So if there's no cash incentive, you were unable to negotiate a fantastic cash price, 0% finance is offered, i still don't see any reason to pay cash assuming you are buying within your means

There was no cash incentive on the 2014 GT500 I ordered. I was still able to negotiate $4500 off MSRP. I wouldn't pay MSRP for any car. And the GT500 is way "hotter" of a car then any brand new Toyota. Negotiating the cash price first of the car will always get you a better deal then telling the dealer you are going to finance it or lease it off the bat.

2013 Ford Shelby GT500 is flying off dealer lots

I would also never pay MSRP for any Toyota lol

I totally get that, I just raised Toyota's pricing structure as an example. The markup, MSRP, ability to negotiate large sums off MSRP, are all quite individual to search scenario. Try walking into Honda and asking for 4500 off a civic, I doubt they even make 4500 on it even if sold at MSRP.

Bottom line for me is to do your research beforehand. Blanket statements like is stupid to finance or lease, nobody pays MSRP, cash is always king, dont always hold true. It depends on the car you're after, your personal financial situation, and at times even how good a lowballer you are

Civic four door, EX-L full load has about $1800 margin in them max....

Honda fits have less than $900


japanese dealers work with skinny margins nowadays...

I guess you'll have to be a super negotiator to get Toyota to sell you at closer to their cost then the $500 max.

Points i learned : car is not investment, house is investment. And buy a used car with Cash

You just need to find out the holdback and invoice pricing and work from the invoice up -- not the MSRP down.

gotta know the right person to get discount at Toyota...

I refer my clients looking for Toyotas for straight up fleet price... it aint bad :notbad:
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By Right person, do you mean "connection"? or the right "salesman" and their mood YMMV?

more like personally know a manager.. salesman have no say on sale price!
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do you know the toyota manager at Toyota richmond or in Vancouver?

a store in vancouver. but by referral only.
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so when dealers advertise as 0% financing, how does it work in "real life" ? What actually happens?

It isn't as good as a deal as it sounds to be right?

It IS as a good a deal as it sounds. There is a possibility you can negotiate a better deal if you are paying cash, assuming that the dealer is open to negotiations or there is a cash incentive/rebate offered by the manufacturer