I would like to point out that
all dealers want cash--new or used it doesn't matter. That's instant capital for them to spend with. Cash turns around quickly, and dealerships do like that. Let me explain in an analogy that might make more sense.
If I sold something on eBay to a local buyer and they preferred to meet me in person to give me cash so they can "save the shipping" and thus also avoiding using Paypal I would (and did do) it. This saves me the seller Paypal fees, time it takes for the money to go through Paypal to my bank account (that is literally 4-5 business days for the funds to clear!) and almost more importantly packing materials and time spent standing in line at the post office (yuck!). Cash talks in business.
There is always "the next customer" for the dealerships to get their financing on and plenty of ways to get more vehicles to sell. After 15 years my step dad (Sales Manager at a Ford dealer) prefers people coming in to pay cash. He sells those vehicles at
or $500 or more below invoice to get them out quickly so he can move on to the next customer. When I sold cars I wanted cash customers too, especially ones that already knew what they wanted on my lot. Why? Car salesman (and thus Sales Managers) get volume bonuses which is where the REAL commission is. Selling new cars by themselves doesn't make you a bit of money unless you hit a volume bonus. (10 cars, 15 cars, 20 cars, etc). 90% of all new car transactions net the car salesman what is called "a mini" which in most dealers is $50 to $150. That is
nothing when you consider the time it takes to sell that car. 15 years ago before the interweb was everywhere and customers were better informed the average car deal was over $500 a piece at my dad's dealership. It wasn't unheard of to make $750 to $1,000 each on every 5 cars or so. The quickest average car sale can be at least a couple of hours, so imagine spending 3 hours with someone from start to finish and then making a measly $50 or $100--and that isn't even considering if you have to split the deal with another salesman! And today in order for you the car salesman to make any money off of a single new car deal they have to pay over a certain amount of invoice or in some dealers MSRP. With today's knowledge and interweb information paying more than MSRP for a normal car is almost unheard of. This is another prime reason why the pre-owned market is flowing the way it is.
ALL the money is being made here on both the trade-in allowance and the sale of the pre-owned vehicle. Followed by the Service department. New car sales are
DEAD LAST on the dealer's list of money makers. Even add-ons and anything you buy in F&I (finance and insurance) nets more profit. You want those cool wheels or that upgraded radio? Want to add a spoiler? Really want "Clear coat sealer"? You get hosed here while the dealership swims in the money it made from you. New cars are the new "cash cars" whereas it used to be pre-owned.
All of this is PRECISELY why you and I need to buy pre-owned. You have more room to wiggle on price, you have a ton of vehicles to choose from and even more important you do not lose the initial depreciation the
SECOND you literally drive off the dealer's driveway. Buy that $23k Mustang V6 and after driving away you just lost $3,000.
*edit*
I also want to point out that dealerships also get bonuses if they sell a certain amount of new cars.
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Excuse the long winded reply, but I needed to point all this out there for those who are uneducated in the inner workings of car dealers. And I am not trying to insult anyone, I am trying to inform. It is a nasty business with a bunch of misconceptions.
