What is the difference between comprehensive discounts and cash discounts when buying a car?
1 Answers
Here are the differences between comprehensive discounts and cash discounts when purchasing a car: 1. Different meanings: Cash discounts refer to direct reductions in cash. Comprehensive discounts do not reduce cash but instead provide consumers with a large gift package. 2. Different levels of discount: Cash discounts on the base car price are a good deal, while all-inclusive discounts are not. This is because when calculating the total price of the car, insurance and purchase tax are related to the car's price. In other words, if we are talking about direct cash discounts on the base car price at a 4S dealership, it is equivalent to the insurance and purchase tax also enjoying the same discount, which overall is greater than the final discount on the total price. 3. Different risks: Due to information asymmetry, consumers often find it difficult to know the true cost of each item in the 'comprehensive discounts' packaged by dealers. Therefore, the best way to buy a car is to directly negotiate discounts on the base car price and only compare discounts on the base car price. No matter how many 'comprehensive discounts' there are, they are not as direct and substantial as discounts on the base car price.