Buying a new car

[stix40]

Guy's

Buying a new car .

Showroom asking for 

Deposit

Then full payment on car when ready to pick up 

Buying with cheque but they require a small amount in cash for showroom 

Is this normal? 

Thanks 

[Woof999]

I paid both my deposit and then final payment on collection via mobile app transfer. That was their (and my) preferred method. Toyota.

[KhunLA]

As long as the deposit shows on the bill of sale, who cares the source.

[CharlieH]

MOVED to Motoring forum

[tjintx]

Transferred 5K as deposit, transferred remainder on delivery (minus 30k discount for cash-equivalent purchase).   Honda.

[stix40]

I wanted to know why the showroom wanted a chunk in cash for showroom?

[unheard]

25 minutes ago, tjintx said:

minus 30k discount for cash-equivalent purchase

Is that a common thing now to have discounts for new car purchases when paid in full?

[Yellowtail]

10 minutes ago, stix40 said:

I wanted to know why the showroom wanted a chunk in cash for showroom?

To confirm your order. 

[tjintx]

I was quoted the same discount amount by two Honda dealers (and received it from the one from whom I purchased the car).    On the other hand, a relative received no discount (instead, pushback for not financing) from a Toyota dealership a year or so ago.

[petermik]

1 hour ago, unheard said:

Is that a common thing now to have discounts for new car purchases when paid in full?

It is called negotiating beforehand....some will some won`t just ask.

[Snugs08]

There's definitely commission in the finance, weather the sales person benefits or the dealership isn't clear to me, but suspect a decent amount given the way they calculate interest, I imagine the discount for cash is offered as you're less likely to pull out, can move quicker, and no risk of bank decline,  clearly some dealerships attribute different monetary values to cash simplicity vs finance commission.

 

Back on point - 5k or 10k to secure your car order is a bargain, expect 5-10x times reservation fee anywhere else in the world. Imagine how messed around they could end up being if the 100% balance was due on collection and they get a no-show. The 5k - 10k to dealer barely covers the time to write up your order and delivery to dealership presuming there are no factory fitted modifications in which case a no-show could be significantly more costly.

When you say cash won't they accept a QR payment? or is it really hard cash? The only reason for hard cash I think of is they can return it easier, this happened to us several years ago over a misquote.

Edited March 9, 2023 by Snugs08

[Yellowtail]

4 minutes ago, Snugs08 said:

There's definitely commission in the finance, weather the sales person benefits or the dealership isn't clear to me, but suspect a decent amount given the way they calculate interest, I imagine the discount for cash is offered as you're less likely to pull out, can move quicker, and no risk of bank decline,  clearly some dealerships attribute different monetary values to cash simplicity vs finance commission.

 

Back on point - 5k or 10k to secure your car order is a bargain, expect 5-10x times reservation fee anywhere else in the world. Imagine how messed around they could end up being if the 100% balance was due on collection and they get a no-show. The 5k - 10k to dealer barely covers the time to write up your order and delivery to dealership presuming there are no factory fitted modifications in which case a no-show could be significantly more costly.

While I agree the 5-10k fair, the dealer really does not stand to lose much is anything. The cars are not really special orders, and with lead-times there are almost always people ready to take early delivery. 

 

I don't think there are any real factory-fitted modifications. The stuff you pick from the "accessories" sheet are typically all dealer installed options (DIO) 

[vinny41]

 full payment on car after inspection by op

Also specified on order form the maximum number of days or weeks car age that you will accept

You can have a 2023 model that was built in 2022 it may have been sitting around the factory or showroom for the past 12 months

[scorecard]

2 hours ago, stix40 said:

I wanted to know why the showroom wanted a chunk in cash for showroom?

So is the 'chunk of cash':

- A deposit and there's a receipt with the name of the person paying and mentioning 'deposit for xxxx xxxx xx'.

 

- Are they say 'for the showroom' because there's some language difficulty? And is there a receipt as just above?

 

- Did the buyer sit down with the sales rep or whoever snr. person appropriate at that dealership and write doen the full price then deduct the amount of the 'chunk of money or the deposit

then on the next line write the balance to be paid on delivery? And ask 2 people from the dealership to sign their names. And the buyer keep the original?

 

My Thai son eventually did the above when he bought a car from a very high profile dealership/brand in Chiang Mai. Son and wife visited and asked to speak to a sales person which produced several people who all gave different stories about:

- Specs of the car

- Price, including some discount and no discount.

- Free extras, ........

 

Son asked one loud overpowering salesgirl to write the above on a document. She refused saying that was illegal and she was insulted to be asked to do that.

 

At same visit a new salesman came into the discussion and seemed to be the 'chief' salesperson and gave clear answers but on being pushed by the overpowering salesgirl refused to write anything down.

 

A few days son and his wife had time to go back. Snr. salesman not there 'sorry he can't come today birthday party last night'.

 

Son and wife went to another showroom (same brand), no confusion whatever, all clear, only one salesperson in heir discussions and all written down. They asked for a deposit of 5,000Baht, cashier came and showed son and his wife the full written details and showed a dummy receipt for the deposit and gave them a copy. A few days later they agreed to buy the car from this showroom. 

The cashier appeared again quickly and politely asked

- How do you want to pay the deposit and final payment. We can accept: cash, bank transfer, bank cheque, bank app or if you prefer we can discuss further. 

[1FinickyOne]

5000 baht - - -

[vinny41]

50 minutes ago, Snugs08 said:

There's definitely commission in the finance, weather the sales person benefits or the dealership isn't clear to me, but suspect a decent amount given the way they calculate interest, I imagine the discount for cash is offered as you're less likely to pull out, can move quicker, and no risk of bank decline,  clearly some dealerships attribute different monetary values to cash simplicity vs finance commission.

 

Back on point - 5k or 10k to secure your car order is a bargain, expect 5-10x times reservation fee anywhere else in the world. Imagine how messed around they could end up being if the 100% balance was due on collection and they get a no-show. The 5k - 10k to dealer barely covers the time to write up your order and delivery to dealership presuming there are no factory fitted modifications in which case a no-show could be significantly more costly.

When you say cash won't they accept a QR payment? or is it really hard cash? The only reason for hard cash I think of is they can return it easier, this happened to us several years ago over a misquote.

Most dealerships are not really interested in Cash buyers or Buyers that want to put down 25/30% deposit on a zero interest deal ( Normally over 4 years)

They will tell you not to put down a large deposit and advise you to put down the bare minimum 5% and they will advise why do 48 months when you will be more comfortable with an 84 month repayment loan.

What they don't tell you is when the deposit on a car is reduced at the same time the interest rate increases same with number of months repayment loan the if low deposit and long repayment schedule = higher interest

I know some people that accept what they are told at dealerships without question paying for between 30-50% over the total price of the vehicle

So yes big bucks in comissions for car finance

[Yellowtail]

14 minutes ago, vinny41 said:

Most dealerships are not really interested in Cash buyers or Buyers that want to put down 25/30% deposit on a zero interest deal ( Normally over 4 years)

They will tell you not to put down a large deposit and advise you to put down the bare minimum 5% and they will advise why do 48 months when you will be more comfortable with an 84 month repayment loan.

What they don't tell you is when the deposit on a car is reduced at the same time the interest rate increases same with number of months repayment loan the if low deposit and long repayment schedule = higher interest

I know some people that accept what they are told at dealerships without question paying for between 30-50% over the total price of the vehicle

So yes big bucks in comissions for car finance

I've purchased six new cars here from four different dealerships and they were all happy to take cash. 

[Mattd]

3 hours ago, stix40 said:

I wanted to know why the showroom wanted a chunk in cash for showroom?

This is perfectly normal and doesn't have to be cash, it can be transfer, bankers draft etc. once you decide to purchase the car then the dealer will want a non-refundable deposit placed to confirm the sale, the amount will differ from dealer to dealer and the value of the car, generally Honda, Toyota, Mazda etc. will ask for 5-10,000 Baht as the deposit, BMW, MB, Audi etc. 50,000 Baht.

This deposit will be deducted from the total cost at the final payment, additional costs on top of the car price are usually a deposit for the red plate (refunded when the white plate arrives) and a registration fee (includes the road tax & polabar). 

[Yellowtail]

AutoShow coming up at the end of the month....

 

Decent discounts and look at everything in one place. 

 

For the Toyota fans, I think the gen-three Fortuner may debut as well as the new Land Cruiser and Crown.

[unheard]

46 minutes ago, Yellowtail said:

I've purchased six new cars here from four different dealerships and they were all happy to take cash. 

Yeah, but you weren't able to get any discounts over the financing option.

[unheard]

24 minutes ago, Yellowtail said:

For the Toyota fans, I think the gen-three Fortuner may debut as well

The updated Fortuner won't arrive until 2024, at the earliest.

More likely to be released at the end of 2024 as a 2025 model.

Edited March 9, 2023 by unheard

[pedro01]

When I buy a car, the deposit seems to be negotiable - but you are gonna spend the money anyway, so no point worrying about it.

 

As for finance - they will presume you want it - and any discounted price you negotiate will be based on that assumption. If you don't want finance, don't tell them until you have agreed the final price.

 

They can discount deeply - you know when you are getting max discount when they bring out a piece of paper from the manufacturer showing the maximum discounts allowed. Once they do that - you can get a bit more but they might dig their heels in - in which case you go to another dealer.  When that paper comes out, I always say "well, I won't tell them if you don't"

 

You have to smile during this process and keep it fun or they will dig their heels in - but they know the game, so as long as you aren't an a$$ about it - they will entertain you.

 

One thing that confuses me was the last car we got, the interest rate offered was 1% - it amazes me they make any money off that.

[Snugs08]

46 minutes ago, pedro01 said:

When I buy a car, the deposit seems to be negotiable - but you are gonna spend the money anyway, so no point worrying about it.

 

As for finance - they will presume you want it - and any discounted price you negotiate will be based on that assumption. If you don't want finance, don't tell them until you have agreed the final price.

 

They can discount deeply - you know when you are getting max discount when they bring out a piece of paper from the manufacturer showing the maximum discounts allowed. Once they do that - you can get a bit more but they might dig their heels in - in which case you go to another dealer.  When that paper comes out, I always say "well, I won't tell them if you don't"

 

You have to smile during this process and keep it fun or they will dig their heels in - but they know the game, so as long as you aren't an a$$ about it - they will entertain you.

 

One thing that confuses me was the last car we got, the interest rate offered was 1% - it amazes me they make any money off that.

On 1m over 3yrs on 1% interest on a car deal, is really about 1.92% EIR if you calculated by any non-thai standard, its quite sneaky imo - advertising flat rate and nothing else would have regulator screaming in other countries.  It still sounds very low though for the likes of Tisco etc but I guess its possible if it was something like June 2020 , are you sure you/misses didn't buy some form of life assurance at same time?

Edited March 9, 2023 by Snugs08

[stix40]

For clarification

I have paid deposit

Have receipt

Bill of sale has deposit paid etc with red plate charges , accessories etc etc 

All accounted for 

So on day of final payment

They want final balance being paid by cheque or transfer I would imagine.

But out of the outstanding balance they want xxxxx amount in cash notes 

When questioned.  

Sales person said it was for showroom???  Party maybe ????

 

 

 

 

 

 

[pedro01]

1 hour ago, Snugs08 said:

On 1m over 3yrs on 1% interest on a car deal, is really about 1.92% EIR if you calculated by any non-thai standard, its quite sneaky imo - advertising flat rate and nothing else would have regulator screaming in other countries.  It still sounds very low though for the likes of Tisco etc but I guess its possible if it was something like June 2020 , are you sure you/misses didn't buy some form of life assurance at same time?

We ended up paying the majority in cash. We took a million at 1% because I like to have the leverage of stopping the finance if the car turns out to have unadressed issues. My theory is that if we stop paying the finance and explain why, it puts pressure on them to fix it.

[pedro01]

39 minutes ago, stix40 said:

For clarification

I have paid deposit

Have receipt

Bill of sale has deposit paid etc with red plate charges , accessories etc etc 

All accounted for 

So on day of final payment

They want final balance being paid by cheque or transfer I would imagine.

But out of the outstanding balance they want xxxxx amount in cash notes 

When questioned.  

Sales person said it was for showroom???  Party maybe ????

 

 

 

 

 

 

tax avoidance!