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On Paying for Cars With Cash

No dealer will turn away a cash-paying customer, but all things considered, they are less welcome than buyers who want to lease or finance their cars, according to the New York Times.

That's because buyers who pay cash, whether they write a check or borrow the money elsewhere and bring it to the showroom, provide car dealers with fewer opportunities to make money on a car deal.

That ranges from the cut dealers get from arranging a lease or loan, to options like extended warranties or antirust coating that buyers are more likely to choose if they can fold it into the amount they borrow. In some cases, those extras account for up to 75 percent of a showroom’s profits.

Posted by   at 10:35 AM to Sales | Permalink

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