Deals for paying cash
#17
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Im not sure how yur credit is, but i would actually reccomend financing the car, you can put a large down pymnt so your payments would be low, but then make paymnts for about 3-6 months and then payoff the car entirely, this will increase your credit score and show your ability to open new loans & payoff debt...just my $0.02
I might also mention that i have over 10 yrs experiance in credit counseling & financial advising. Good luck with which ever route you decide to take.
I might also mention that i have over 10 yrs experiance in credit counseling & financial advising. Good luck with which ever route you decide to take.
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
#19
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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?
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?
#20
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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.
#21
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Hey fellas.. I finally sold my car and now I am in the process of buying a 2011 is 350awd
with all the bells and whistle.
I'm planing on paying cash for the vehicle, which come to mind if any of u guys bought ur car in cash, what is the best offer I can get for paying cash? Do the dealership give you better discount if you pay cash?
Tks in advance
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I'm planing on paying cash for the vehicle, which come to mind if any of u guys bought ur car in cash, what is the best offer I can get for paying cash? Do the dealership give you better discount if you pay cash?
Tks in advance
Last edited by *Batman*; 02-11-11 at 04:16 PM.
#22
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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.
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.
#23
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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.
#24
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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.
#25
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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.
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.
Last edited by ThermonMer; 02-11-11 at 10:31 AM.
#26
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I found this to be a very useful article about buying a car ->
http://www.edmunds.com/car-buying/co...-salesman.html
http://www.edmunds.com/car-buying/co...-salesman.html
#27
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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)
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