thinking about what youre saying Chop, obviously they can afford to come down on price if you finance with them as they will be making more off the finance charges than if you finance through someone else or pay cash...makes total sense never thought of it like that
Yep.
I bought a GMC truck 3 years ago.
I had a GM Mastercard that built up $1800 in credit to go towards a new GMC vehicle.
I made the huge mistake of telling them upfront I had $1800 credit on the card.
They took that into account when they were coming up with there offers.
Basically they were going to factor that $1800 into there offer to make it sound like they were doing me a favor by making the $1800 I earned on the card for 5 years as part of there offer when that was something I earned myself with 5% back on all purchases.
Realizing this at the last second I left that dealership and went to another dealership without telling them about my $1800 credit I had on my card.
I end up getting a much much better offer at the next place because they had no idea I had that $1800 credit in my back pocket.
Once they dotted all the I's and crossed all the T's and gave me my final offer which was a much better offer then the first place I pulled out my GM card and said "oh by the way I have this GM card with $1800 I want you to apply to that final offer you just made.
I could sense the displeasure when I did that.
I thought it was great. It was comical the look on his face. He made some funny remark like he was giving the truck away and he never sold that truck for that cheap before trying to make me feel bad. LOL
That dealer was outside of my town but if I would have used that same strategy at the 1st place there is not doubt in my mind I would have gotten a deal that was close to the same as the 2nd place.
So the principle is the same with cash/credit.
If they dont think you are paying cash they will go down on the price because they will figure in how much extra they think they are going to make on finance charges.
They have to think you are going to go credit all the way to the last second.
You even need to let them run your credit just to make it look you are about to finance.