Don't Buy Your Mercedes With Cash! Here's Why
ฝัง
- เผยแพร่เมื่อ 1 ธ.ค. 2020
- Don't Buy Your Mercedes With Cash! Here's Why
When you're buying a luxury car from Mercedes or another dealer, you always get asked the question whether or not you'll be buying with cash, financing, or leasing. I'm going to explain why you should never tell the dealer you're paying cash, and why it doesn't make sense in general to buy a luxury car.
Let me tell you my experience, and explain to you why these options aren't the #best way to #buy a #new #car
We are always looking for supercars and supercar products to test, drive, and review, so if you would like to see your car, or product on our channel, please contact exoticcarplayplace@gmail.com
Of course, as always join us on the channel by clicking below:
/ @ecpp
TWITTER - @Exoticcarplaypl
- / exoticcarplaypl
FACEBOOK -
- / supercars2000
INSTAGRAM - @Exoticcar_Playplace
- / exoticcar_playplace - ยานยนต์และพาหนะ
1. Don’t tell them you’re paying cash.
2. Negotiate a financing
3. Make sure there’s no pre-payment penalties
4. After driving off with your car, Send them a check the next week paying off all the money.
I took the financing 1.9, that’s very cheap money and got a good deal on the bottom line. I can choose to pay it off at any time.
But how would you handle a trade-in? I wouldn't tell them up-front that I have a trade-in, because then they'll play one off against the other. So, how and when do we introduce the trade-in?
Genius
Never buy one just lease them
That was my thinking pay off the car early. They don't charge a fee if you pay the car off early?
My son used to sell Mercedes. He told me that they screwed up buyers the most with financing terms....so I would disagree... Go to the dealer, negotiate lowest price and pay cash....but do not let them know while negotiating....most likely they will not ask since such pricy cars are very rarely purchased with cash....
You didn't watch the video
Knowledge is Power!! Thank You 🙏🏾 for this 😘
You are so welcome
Thanks for such a great video. I just started car shopping this month and hope to be finished by 1.4.2021. Your insights are invaluable.
Thank you very much. I would love to hear about what you end up buying
Thank you Mark for all you do for us. This was so helpful. I appreciate it.
You are very welcome
@@ECPP I just got a question, cause nowadays mercedes themselves take care of the pricing and not the dealers, I used your strategies and negotiated, and all the said was the dealer can't do nothing because they don't control the car prices any more, only mercedes headquarters themselves do (this in Australia btw)
Dude, just do everything over email or phone, dont get into that whirlpool in person.
Did exactly that. I pick up my 2020 S Class tomorrow end of year clearance. Saved 20k.
Bought a new coupe over the phone (the dealership was 300kms away)
Financed from third party and the car was delivered at Midnight off the back of a Car mover(truck).
The best way to shop.
Thank you for this important info. Very good advice good to know. Keep'um coming.
Thanks a lot. Cheers.
that 5 spoke design on your bench.. and variations of it never gets old.
Thanks a lot. Cheers
Good morning Mark, great advice, thanks for making this video, have a great day stay safe my friend 😎
I bought the added “wheel and tire protection” on my BMW 535 with 19” rims and Michelin Run-flats. 24 months/10 tire replacements/2 bent rims later, it was well worth the purchase! Simply had to trade in the car due to anxiety of driving and not knowing when the next blow out was going to occur. Great concept for weight management and distribution but terrible in practical execution. I haven’t thought about returning to BMW since.
I swear I learn so much from you
a better technique to that (overpriced) 'certified' pre-owned warranty is to shop your repair locations beforehand, to include the warranties services they offer (of which they KNOW the best warranty companies and you likewise find your best repair shop opportunity), instead of paying top-dollar for a so-so warranty direct from dealer.
GREAT INFORMATION THANK YOU!!!!!!!
Thanks a lot Gerry. Have a great day.
Good video champ hopefully this will help people
Great advice, thanks 🙏🏼
Thanks a lot for watching
Do a video on used car dealerships when it comes to buying with cash.
Is there a specific fact you are interested in?
Thanks so much, brilliant advice!
Thank you very much
Is a great idea if you have a perfect credit but let's be honest if you have money to pay cash for a real Mercedes like an S model or something like that ... Who cares about depreciation....
A wiser person will still care because every penny saved is a penny saved. Even if you have the money why not try to save as much as possible
Thank you! Good video.
Thank you for the great info. 😎
from Guam
Thank you very much for watching. Have an awesome day.
I've had dealers literally try not to sell me a car because I have a tendency to come in with cash to buy the car they have at too low of a price just to get people in the door...They know I don't buy my parts at their parts department and there's no money to be made on financing with almost nothing to be made on the sale.
They literally pulled an ignition coil out of my old 6 series to pretend it had a rough idle when I came to test drive it.
(I pay cash because sometimes I have extra cash from my cash business)
Wow, that sounds shady indeed
SUPER helpful, thank you!
You are welcome
Thanks for all the info Mark..
You are welcome
Thanks friend appreciate your info.
Thanks a lot Gregory. Cheers
Its worth mentioning here that the "low cost" financing sometimes means that you pay a higher price for the car because of the dealer required contribution
Also...be careful of " certified pre-owned" luxury cars as they seem( in my opinion) to really charge for that
In a luxury car they seem to try to scare you into paying more by implying about what your repairs will be
I have no issue buying a an off lease luxury car with a good history and buying my own extended warranty versus the $3000-5000 that companies like Mercedes benz tack onto the price for their CPO program
Thank you! I learned something!🤩💜💛💛❤💯
Thanks! Good video.
You are the best, thank you.
Thanks for the information
You are very welcome
A video on how to pay when we are buying a used car from private, that would be great.
Great advice about NOT revealing whether or not you're paying "cash" up-front! But what about a trade-in? You also said something about not revealing that up-front as well, since the dealer will often try to play one price against the other, i.e., give you a better deal on the new car, but give you less for the trade-in, and vice versa. So, WHEN and HOW do we introduce the trade-in? Do we mention it to the salesman in the course of our negotiations, or what?
really great video, thanks
Glad you liked it! Have a great one.
This lesson is well worth listen to (subscribed instantly... nice flow... and facts are there like 1-2-3)... the thing is... I don't want my CEO to see that I have a loan... like everybody else... but again I have no problem if the loan is only for few months... and slap the dealer with the cash I already got when I've entered the fence.
In my 28 years of driving I've only own 4 different cars... 1975 WV bug, 1991 WV Passat (p), 2001 Passat (d) and 2007MB C220... all were used, all payed with cash... Now I got sick about MB GLK or BMW X3... I'm kinda used to a gentle and comfort ride of MB C220... Will I be disappointed with GLK or X3 considering smooth ride ? Just want to move to a SUV because of higher position and easier to enter and exit car. Hope it makes sense... will be glad if someone can say something about that.
thanks bro for your advice
You are very welcome
good video , how many years is the cpo warenty on your mercedes , and is it covering everry thing or just engine . tks
Having the flexibility of cash is great, but it’s almost never the best way buy if you have solid credit.
Yes
Good advice bud 👍
Thanks. Cheers
This was really informative! 📝
I also I agree on protection packages.
I keep hearing about what not to do at a dealership when purchasing a vehicle. When will we ever see documentation and training videos outlining what to do at a dealership from the moment you arrive and exit your vehicle.
I have given this info
Never pay cash for any car. Never. Lease and invest your cash. Picked up my 2020 S Class tomorrow end of year clearance. Saved 20k off msrp here in NOVA. HAPPY HOLIDAYS
Good choice! Congrats on your great choice. Those machine are wonderful. Have a happy holiday as well and thanks for reaching out.
Very going advice thanks
Thanks
You could have taken their in-house finance and then paid it off in three months or the next month . Just ensure there is no pre payment penalty . I have done it twice and got the cheaper finance deals .
Same here and yes that is a clause now, as I mention later in this video and many lenders not waive that penalty.
thanks.....from Portugal
Thanks for reaching out. My wife is Portuguese and specifically the Azores which is a breathtaking place. Have an awesome day.
Lots good tips.
Rolex Dealers want cash, they must know what to do with it, lol. A different story
in the car world when it comes to cash. They even seem to dislike more the use of a credit card if you have the deal down to the bone (pay a point). Man, Mark, I like the way you ran this down. Congrats your sub count.
Great video.
Thank you very much
I literally work at a dealership and we ask how you’re paying so we can see if we have cash rebates or low finance rates lol.
Thank you very much🔥🔥🔥
Thanks
just my 2 cent,
Windshield repair and upfront cost of maintenance are the only 2 things I've used from the add ons.
I have an Audi Q5.... and the windshield got cracked within 2 months of owning the car.....
Since I had that add on, it saved me close to 2k which basically was the cost off all the additional add ons.
What about ur car insurance as a glass cover?
This is why I don’t go to dealerships. Buying a car shouldn’t involve all these secret codes and techniques and 💩. Imagine if you had to negotiate the price every time you went out to eat, “Well I didn’t eat my whole chicken, so I should pay this, and that”. Exhausting. Set a flat rate and call it a day 🙄
They always charge you a lot of fees when you finance any loan including mortgage.
It’s simple take the monthly, times this by the term to give you what your actually paying. Do this before anything else. If you want a warranty this will be a different get a quote from someone before going through this process. Once you have all the info do everything else via email so that you have a record.
Also shop for a car at the end of the financial year when the dealer needs volume of sales
exactly
Great video
Thanks
How about prepaid maintenance? Do we need to get this and add up to the price of the car to be refinance?
Seen several ads where your told upfront the price is for financing. If you pay cash, add $2k.
Most of the financing from these car companies have ‘open loans’ meaning no penalty for early payment. Save yourself stress and just get the financing terms and then pay it all off next month if you have the cash. There’s no interest penalty like a mortgage, but ask to confirm.
Final line absolutely, can you do better for cash?
Cash is KING ..... after you have done the financing!
Thanks
I never pay admin fees. either put it in the price or no deal.
I enjoyed the video a lot
You are so kind
Most cars like you mentioned Mercedes, BMW, jaguars, are between 35-50k. If you get a loan term of 24 or 36 months as you claimed the payment would be $500 to $800 a month, every month, that’s just not feasible for most people. Negotiate not from the selling price but the manufacture price and then pay cash (in the form of a check)🤔
What about G-wagons? They depreciate differently than any other Mercedes. I see used G-Wagons on the market right now costing more than New G-Wagons. Weird right?
So then it comes to the mechanical breakdown insurance. Be careful with this. They are all different. Check what’s covered carefully and under what conditions you have to live up to.
I understand to never mention cash and settle on the lowest finance price. What if you plan to put half down in cash and finance the rest at your own bank and not through the dealer?
WOW very interesting super kool ,1st class great info.,, AAAAAAAAAAA++++++++++++ again great video I liked it a lot ,keep up the great work.
The old vehicle thing is really funny 😆
Cheers
Outstanding info!
Thanks a lot, I hope it helps.
@@ECPP I agree. Thank you so much. :)
Watching this after paying cash and I knew them extra warranties were trash just wanted to protect the 20 computers the car got 😂😂😂
Would it be better to finance a car through a credit union instead?
My grandparents can buy almost any car u can think of in cash but they always use credit then pay up on it explains why they have a 800plus score ;-;
What if we have cash on hand but are trying to put our lives back together and do not have good credit what if anything can we do then?
Perfect
Thanks
Do the same strategy works for buying new cars?
I'm still going to use cash, at least for a used car, not for a new car.
1:16 Actually it doesn't matter. If you say you are financing and then say cash they just increase the price and say that was the finance discount.
Someone said to me: Take some on finance (or all). If the car is a lemon the finance company may help you if you have a solid comlaint, especially if you withold payment !
Yes withhold payment… sure that works… they will just come and take your stuff and slap you with fines lol
Get a pre Purchase inspection And avoid buying that aftermarket warranty
Hi! Question- I have a 2020 Toyota hybrid RAV4 ( 4095 miles ) and I owe 32,500$ - I checked with Kelly blue book on line and it says that the value s 41,128 - I want to sale it ! Where I should go to do so?
Dealers make so much fluff by adding a few percentage points on your finance and also add extended warrante money into financing cost wherevextented warrantee doesnt have finance costs. So for a $3000 extended warranty at 4.5% adds up to a lot of money
Is it possible to get the best price with financing then within a week pay it off so no interest accumulates? I have always bought used cars from private sellers cash so I have no experience with dealers and financing.
This is the situation that I faces and so from my experience it is possible.
That's what my parents did with their Lexus, negotiated a great finance price, made one payment, payed off the car when the next payment was due.
What is the point ? Usually it is simple interest loans .
@@76golub The point is that dealerships will generally give you a better out the door price if they think you are financing your car, and of course if you pay it off early you save alot of money.
@@76golub because dealers make more money on financing. Ergo they charge interest on the length of the term of the finance. So they will be more willing to give you a cheaper price on the car since the interest rate on the whole will more than compensate. But the trick is to pay off your loan right after taking it, so the interests dont compound, saving you money + you got the cheaper deal already to start with. Ofcource this depends on the finance terms (e.g. free downpayments, compound or total interest)
So what if u have terrible credit and you know you won’t be able to get the car you want through finance but you have the cash to buy it straight up what do you do then?
you pay cash, why would you want to pay all that interest which adds up in the thousands?
I say pay all cash to buying used cars but finance brand new cars. But when paying all cash wait till the last minute, deep with in the deal.
The highest price surely sounds financed. I've always had cash and I had my price in mind (after doing my research) ... If the seller isn't willing to accept my offer then I walk. More often than not the seller will call you back for the sale
I don’t tell a car salesman anything about my business. They don’t kick me anywhere because I control the deal or there is no deal.
Best to try to keep things that way
Good tips on big savings when buying a car 👌
Thank you very much. Have a great day.
What about the interest you pay on the finance. It is more than the saving interest.
@rvidal0001 what's your savings interest? In my country prime rate is 5.25% and you can't pay below it in a car loan. Normally prime plus 2 is the minimum rate. Personal loan is up 18% total interest unless you negotiate down to 14% i.e if you are an affluent client
I don't know about Canada but, in the US, you will need to read the terms of the loan yourself. Ask the salesman? Yer outta yer mind. The salesman can legally lie to you.
And sadly some do
@@ECPP I would say 100%. They have the legal right to lie. It might be different in Canada. You better call that warranty company. It is a
scam. The salesman will pocket the money and never file it. It is quite common. If you call the warranty company and find out the salesman did not file your warranty, it might be wise to make a video about it.
I was shopping for a C7 Corvette and the guy said the car in the showroom has a discount on it. I asked the price of the car, the salesman never wanted to give me the actual price but a monthly price. I asked again and he didn't budge, at first he didn't want to give me the length of term!. I was angry because he treating me like a fool, I said fine and took out my calculator and they would be ripping me of by a whole lot and I mean a lot more. Another thing where the heck do you get those low finance rates you are talking about? All the dealers I visited in early 2020 the rate was 8%.
I've been there brother...I had a calculator too! Tried to rob me to the tune of $6000..I had gotten pre-approved with the credit union so all I needed from him was the purchase ...said he was trying to save me money..I wanted to punch him in the mouth
You being real never ever tell them how much u really have or cash it out do a down payment or zero down to build up yo credit
nice
Not to mention if someone hits you and it’s totaled the loan gets paid off if you get Gap!
So if I get this right, with finance rates currently high, now is a good time to make the dealer *think* you don't have cash even if you intend to pay cash.
Now, we can buy and customise our cars online. Is that advisable?
Dealers make most of their money on the finance. You can take the loan and then pay it off as soon as the first bill, BUT there could be an early pay penalty.
Wait why is early pay penalty a thing?
@@gaara4667 Because the lender is penalizing you for paying off the loan, thus they lose on all the interest. Not all lenders have this clause.
Exactly
Yes the lenders want to earn your interest and if you walk out early, then they feel robbed.
Alright thanks
In others words, car dealerships need to get disrupted.
You bet. Cheers.
This is not the case if the car cost- $8k to $15k for a used car
Exotic Car, if you remember, we had a conversation about GLA 45, and you stated it was garbage and not reliable. As I was watching this video, I was surprised when you and your wife were even looking into GLA 250... have you changed your mind on the GLA's?
I think the GLAs are great especially for the price point. Not the brands sturdiest offering but a wonderful vehicle either way and yes we did drive a couple in out recent pursuit.
@@ECPP I have had my 2016 gla 45 for 3 years now and still loving it. I am driving it until I complete all my finance term.
Make sure they separate the figures. Ie cost of car , cost of warranty , cost of insurance etc. Iif the provide you one price for everything you will be none the wiser. Make sure it’s all separated out.