Each time I’ve purchased a vehicle I’ve had to completely avoid letting the salesman know that my wife and I will be paying cash. I think most folks have the mindset that cash is king and that you’re going to get the best price by paying in $100 bills, but when you’re dealing with dealerships, finance is king. Many manufacturers offer finance promotions that shave several thousand dollars off the vehicle, and almost every time the dealer receives a kickback for doing so as well. I’ve seen this at car dealers, tractor dealers, motorcycle dealers, and most recently an RV dealer.
My wife and I purchased a travel trailer last year, and the price tag was $21,000 if we paid cash. If we financed 80% of the loan, however, the price dropped down to $18,500. So we did exactly that.
Like JJ said, don’t get the false idea that you’re going to get a cash discount. And if you tell them you’re paying cash up-front, before you begin negotiating, you can be sure you’re going to end up paying a higher price, because the dealer won’t be receiving a finance kickback to help subsidize the lower price they could have sold it to you for.