Buying a Car: Financing Vs. Cash

[divisionbyzero]

(A re-post)
Hello. Can you tell me why Financing buyers get a higher priority (re: discounts, unit acquisition, etc) as compared to Cash buyers?
I know one reason, because in the long run, for financing, the buyer will be paying more of the intended price, and thus the incentives..
I am also aware that value of money diminishes over time..

I’ve been to a car dealer before and they give priority to In-house financing as compared to cash buyers, and it bothers me because I am planning to buy through cash. Please kindly enlighten me on this matter.

Thanks

[tidus1203]

Because they make more money on financing buyers via interest payment. They win, you (the buyer) lose because you end up paying as much as 30% more for the car when all is said and done. So P1M car becomes P1.3M as far as the car company and its finance arm is concerned.

PAY CASH! Don't let their freebies trick you because those are just pinches of salt compared to the total money you will lose doing financing. If you want an in-demand model where dealers sleazily jump financing buyers in the line just wait it out or buy the competitors product. Never give in!

[divisionbyzero]

Because they make more money on financing buyers via interest payment. They win, you (the buyer) lose because you end up paying as much as 30% more for the car when all is said and done. So P1M car becomes P1.3M as far as the car company and its finance arm is concerned.

PAY CASH! Don't let their freebies trick you because those are just pinches of salt compared to the total money you will lose doing financing. If you want an in-demand model where dealers sleazily jump financing buyers in the line just wait it out or buy the competitors product. Never give in!

Yeah, since I (actually, with the help of my Dad) have the cash by the end of the year, I will probably push on buying through cash since I am not on the rush of acquiring a new car (borrowing dad's pickup atm ).. Still choosing on City or Jazz, but may look for other brands/newer models on the last quarter..
Anyway, me thinks there will be less hassle for cash payment also..thanks for reinforcing the idea of disregarding those candy-coated conveniences
Thanks a lot

[hench7]

You want to know why? Because the dealership only earns Php 3,000.00 for every car that is being sold as cash.

For good gesture, try to get the insurance at least from your SA. Just haggle the price a little bit, otherwise, you might encounter an SA who is not willing to sell you a car unless they are after the quota not the profit.

[divisionbyzero]

You want to know why? Because the dealership only earns Php 3,000.00 for every car that is being sold as cash.

For good gesture, try to get the insurance at least from your SA. Just haggle the price a little bit, otherwise, you might encounter an SA who is not willing to sell you a car unless they are after the quota not the profit.

3k/car? Is that gross or net income? If that's a fact, it is surprisingly low..
I did some research and if that's the case, a honda dealership earns approx. 160k PhP per month..
basis: http://www.gmanews.tv/story/166939/R...ightly-in-June

Anyway, I'll take note of your advice. Thanks

[BlueJazz]

3k/car? Is that gross or net income? If that's a fact, it is surprisingly low..
I did some research and if that's the case, a honda dealership earns approx. 160k PhP per month..
basis: http://www.gmanews.tv/story/166939/R...ightly-in-June

Anyway, I'll take note of your advice. Thanks

3000 is probably the commission of the agent.

I have a friend that works in the mitsubishi plant. they sell their cars to the dealers at 200k-300k less than the SRP.. thats why dealership stays upfloat even if they sell only 10 cars per month..thats 2M to 3M pesos !