gsxrchad

Finance the car through them for the best deal and pay the loan off the next day. Or am I the only one who does that?

felixdang

This sounds like a great idea.. I just might consider this..

But one quick question right now they are running 2.9 % financing, for the month of febuary, how much intrests will I be paying if I do financing from them and paying off the car in 3-6 months

sigteacher

Exactly

knownastro

I don't understand...

If you're financing, don't you pay more in the end through interest?

How would they make money off you when you finance if the finance price is lower than the cash price?

Kurtz

iTrader: (1)

The "dealer" isn't generally the one giving you a loan.

Generally the dealer is getting "cash" regardless of how you pay, be it from you, or from the finance company/bank doing the loan... hence why they won't care if you have cash in hand... they don't "gain" anything by this.

The dealer can make money because they get a cut from the loan provider (who themselves make the $ on interest).

Hence if the dealer gets a $500 kickback on every loan they send to Joes Financing, they could knock $200 off the price of the car if you're doing a loan rather than paying cash, and they are still $300 ahead of a cash deal.

I can't think of any case where the dealer would PREFER you to give them your own cash. Either they'd prefer the loan (if they get a kickback for it) or they simply don't care at all, since they're getting paid in full either way.




Personally my suggestion is you tell them "I already have financing lined up, but if doing it through you can take anything off the sale price I'm interested"

Then, if it gets you any discount (and there's no BS origination fees or whatever) take that deal and pay the loan off the next day in full. If it doesn't save you anything, whip out your big suitcase of cash and pay right there.

*Batman*

The only time you get a great deal paying cash, is on cars where the lease terms will be inherently unfavorable.

642mx

I've always felt like I get better service from the salesperson if they know I'm not financing. After you make it clear that your not financing, they will take more time to show the vehicle.... instead of rushing through the vehicle showing/test drive so they can hurry up and get you to the F&I office to see if you qualify or not.

Just think about all the hours a salesperson goes through for each customer.... only to find out that the customer (who has burned up all this time) doesn't qualify for a loan.

I'm in the powersports business, and this happens EVERY day here. Its freaking annoying, but its part of the biz. If a customer comes in asking about a monthly payment, you can bet his credit is "ify". If a customer comes in here and wants to know the bottom line, they either know they have good credit... or they have a roll of cash in their pocket.

Lil4cyl

Dealers make "points" off financing. They generally have deals with finance companies, where say that are giving you the loan at 7.9%, they may be making 2 points off the loan, which means the finance company is ACTUALLY financing the car for 5.9%, and giving the dealer 2 points payoff.

COOLIS

Cash is not king anymore. Do not tell them you are paying cash. I've watched my dad go in and play off that he is financing the car until the price is set in stone. Its not until then that he decides to let them know he will be writing them a check. They obviously lose some money this way, but hey it gets them to negotiate.

ThermonMer

as ppl said, it will hurt you. lexus financial is a well established powerhouse built on the credit of their high-income buyers. you are not doing the dealership any favors by going all-cash.

if you go to a non-exclusive automall that outsources their financing, then it is a different story. they are in a rush to liquidate their massive inventory - its a time-sensitive issue, they rather not go through a financing company.

also, cash may help if you are buying a lower end brand car (mostly b/c they need the business of all-cash buyers to offset the number of potential buyers that do not get approved for financing).

walking into a lexus/mb/bmw/audi dealership and saying you are an all-cash buyer is probably the worst thing you could do. not only will they not negotiate, but they will also make the assumption that you know little about their transaction process, and will take advantage of you.

tenspeed

iTrader: (1)

I found this to be a very useful article about buying a car ->
http://www.edmunds.com/car-buying/co...-salesman.html

ThermonMer

i like rastaracers advice. just make sure there are no prepayment penalties in the loan terms...no clue if they exist for vehicle financing (im a commercial mortgage guy)