Buying A New Fortuner ... Will Dealer Discount For Cash Purchase ?

[Dublin01]

Hi,

I'm going to buy a top of the range Fortuner (New) and can pay cash as it will be a company asset. Is it possible to get a discount from the dealer ?

Any advice on whether I should pay all cash or Finance 50% etc would be appreciated.

Rgds,

N

[hansnl]

As far as I know calculated in the price is a margin of of max 8%

Ask for the lowest possible price for cash payment AFTER delivery.

Or, if the price is offered, offer a lower price for cash payment.

Or, ask for extra embellishments of the car, up till 10% worth of the price of the car.

If no succes, go to another dealer.

It is a buyers market.

If you take out finance the car is not in your legal ownership.

Besides that any profit in a lower price will be useless because of the finance payments.

Edited January 12, 2013 by hansnl

[Dublin01]

Thank you Hansnl , That is what I suspected. Appreciate all advice !

[blowin]

Buying a Fortuner and with a name Dublin01,I thought all us Irish were broke!! But glad to to see one

still doing ok LOL .

[Jitar]

I tried for both discounts and free options on a Fortuner with a few dealers in 2011 but their order books were too good so not much on offer. Cash sales meant absolutely nothing.

Hope things are more competitive for the OP now.

[OMGImInPattaya]

No discount for cash...if anything you'll pay more. Dealers make money on selling cars on credit (often a kickback from the bank) so no benefit for discounting for cash, especially in a sellers' market like Thailand. Why sell you a car for less profit for cash when the next guy in the door will buy it, and buy it with financing.

[Woodsie888]

As far as I know calculated in the price is a margin of of max 8%

Ask for the lowest possible price for cash payment AFTER delivery.

Or, if the price is offered, offer a lower price for cash payment.

Or, ask for extra embellishments of the car, up till 10% worth of the price of the car.

If no succes, go to another dealer.

It is a buyers market.

If you take out finance the car is not in your legal ownership.

Besides that any profit in a lower price will be useless because of the finance payments.

I know I'm thick, but I do not understand your post.

Somehow, I don't think you do either.

[Woodsie888]

Thank you Hansnl , That is what I suspected. Appreciate all advice !

You are very unlikely to get any discount at all. Most of the popular Fortuner models have a three month wait presently. Why would the dealer have any interest in you 'paying cash as it will be a company asset'? They make money from finance deals, not from cash purchases.

[merijn]

I tried to get a discount for buying cash but no luck.

I went a few years ago to the Toyota dealer and asked which discount or goodies I would get if I bought the top line Camry cash on the spot.

Answer from them, Nothing at all.

But if I bought the same car on credit I had discount, 1 year free insurance and all goodies for free.

So in the end I put the money on a bank account (with small interest) did the maximum deposit and used a 1 year no interest car payment plan and received all the extras for free.

Must be something to do with the commission they are getting from the creditors.

Edited January 12, 2013 by merijn

[IMHO]

It's all about squeezing the maximum commission. Paying on finance gives the rep and the dealership more of that, paying cash gives them less. Yes, they *could* discount for cash, but it's awfully hard to negotiate.

Offering a cash discount also heavily complicates the accounting liability for the dealership.

There's 40-60K of total discount available on a Fortuner (i.e. at this level the rep and dealer still make a decent commission/profit) - they will much prefer to give this to you in the form of over-valued freebies though, so the bottom-line sale price doesn't need to change.

One strategy that has worked for me in the past is to negotiate a post-sale 'deposit rebate', which they liked the idea of..

It is a buyers market.

You got that one backwards I'm afraid - the 'exports come first' rule and stock quota systems employed by every manufacturer insure it's always a sellers market in Thailand.

Edited January 12, 2013 by IMHO

[merijn]

It's all about squeezing the maximum commission. Paying on finance gives the rep and the dealership more of that, paying cash gives them less. Yes, they *could* discount for cash, but it's awfully hard to negotiate.

Offering a cash discount also heavily complicates the accounting liability for the dealership.

There's 40-60K of total discount available on a Fortuner (i.e. at this level the rep and dealer still make a decent commission/profit) - they will much prefer to give this to you in the form of over-valued freebies though, so the bottom-line sale price doesn't need to change.

One strategy that has worked for me in the past is to negotiate a post-sale 'deposit rebate', which they liked the idea of..

It is a buyers market.

You got that one backwards I'm afraid - the 'exports come first' rule and stock quota systems employed by every manufacturer insure it's always a sellers market in Thailand.

Do you mean that you get the discount after you paid the car in full first and took delivery of the car? I don't think i would trust them that much.

[Hedghog]

Cash is no longer.

Credit is the new cash

[Terry Newman]

No discount for cash...if anything you'll pay more. Dealers make money on selling cars on credit (often a kickback from the bank) so no benefit for discounting for cash, especially in a sellers' market like Thailand. Why sell you a car for less profit for cash when the next guy in the door will buy it, and buy it with financing.

I found this as well, cash price was the most expensive, not negotiable. The reason is they make most of their profit from the finance company. To rub salt into the wounds, I was also told that if I paid in actual hard cash, which I prefer doing, there would be a cash counting fee which is bloody ridiculous in a cash society like Thailand. We ended up getting the same price as the finance price by the wife pretending to be a teacher at the Uni and then at the last minute changing he deal to cash.

[Ackybang]

Hi Dublin01,

It sounds like this might be a Toyota thing. In my opinion, not the friendliest or helpful bunch concerning sales - always found their representatives to be a bit stuck-up when dealing with them in the past - for what reason, I don't know.

I would definitely try to squeeze as much out of them as I could - for cash, or otherwise. Everything is negotiable here, and you have nothing to lose - try with as many dealers as you can - don't be shy - a brand new fortuner is a serious chunk of change.

I have, over the Years successfully negotiated a decent cash discount on three cars that friends bought, aswell as freebies - with Ford and Mazda (one saloon and two trucks). The guy with the saloon, I got him a 50,000 baht discount, and a free baby seat - and two payments over a Year with no interest.

Me personally, I bought a total of three trucks for my business over the Years and always bought on finance. My last truck was a Mazda, and I bought it on 'M day' - a promotion once a Year - got a shit load of freebies, aswell as 37,000 baht off full price, aswell as 0 percent finance over two Years, as I put down around 60 percent (At the time, to qualify, it was a 45 percent minimum).

If you're buying in your company name, whether you pay cash or not, it's still an asset, and is deductable through your accounts. Regardless of how you pay, the system will offset a certain amount against expenditure over a certain amount of Years, and not all in one go. If you're V.A.T. registered, you can also claim the tax on your fuel (diesel). If you ever come to close your business, and want the car in your own name, you will have to sell it back to yourself, pay V.A.T. and withholding tax again.

Talk to your accountant before you buy, as the laws may have changed since I was doing business here.

Good luck with your purchase.

[Dublin01]

thanks to all, for advice , It's much appreciated,

N

[IMHO]

Do you mean that you get the discount after you paid the car in full first and took delivery of the car? I don't think i would trust them that much.

It all went into the contract, and I made it clear the rebate had to be in cash. All went through without a hitch - got an envelope of cash along with the keys..

[simple1]

in Western countries OPEX far out weighs CAPEX due to tax treatment on the asset, do not know if this applies in Thailand. So if you are acquiring a vehicle for company use why aren't you asking your accountant if their are any company tax benefits on CAPEX versus OPEX and then decide how you wish to fund the vehicle purchase.

Edited January 13, 2013 by simple1