[Advice] Paying cash for a new car

You may be able to get a lower price if you offer to pay cash right there.

I usually pay my cars off in less than a year though. I'd rather make bigger monthly payments rather than make one big cash payment just in case something happens.

 

I really like my Outback. You can get them for under $25k, and have good gas mileage for AWDs/4WD. This is also the year Subaru does a significant upgrade to the Outback. I think they do 7-yr cycle for major upgrades. The 2015 will be a year Used Car purchasers will look for in the future....I've been told.

As for financing, I would think the dealers wouldn't care much for new cars. But cash probably is a great Used car strategy. Consider a 1yr old car and bring cash. You can only bring them down so much for New, and my experience is it doesn't matter if cash or financing. But I don't have much experience. When I've bought new, I've been lucky enough to know people with an in to a salesman who rewards you for hassle free buying.

I recommend test driving at one dealer, finding the exact car you want, then using Internet/online purchasing at another dealer and state exactly what you want demanding hassle free best offer, and you will buy same day.

You can probably count on paying more down payment should get you more leverage to negotiate a great interest rate.

 

I have found that dealerships will give you a better deal for choosing to finance through their finance officer since that is how their finance guys make their money.

 

Bingo - so work the system. Work a hard deal on the price and sacrifice the interest rate. Don't mention that you have cash. Make sure that you can pay off the loan right away with no penalty. The dealer will probably think you're a sucker for giving you a lower price with a high interest rate as you will pay more long-term.... Get the great price, pay it off month one with your cash.

 

I don't think you can ask for a lower price and higher interest rate. The interest rate will be based on his credit score.

 

Depends on if you feel llke you need to build your credit at all.

Plus like a poster above said you might get a better deal by doing indirect financing with the dealership. If you plan to pay that loan off right away I'd go that route.

If you plan to pay on the loan over a long period of time you won't save as much money as paying cash due to you accrue interest, but you will build credit. And even if you can pay everything with cash good credit is still important bro.

 

Wait. Are you guys saying you can pay off a loan in the first month and avoid interest. I don't think that's true.

Besides, there is no reason to play tricks. You can get best price whether you have cash or not.

 

Yes you can. That's what I did.

 

You'd have to pay the first month's interest, but if you pay off the remaining principle with that first payment, and there is no early payoff penalty, you should be good in saving the remaining interest on the note's duration.

 

Some places charge a penalty fee for paying off a loan early I've heard.

This is probably do to the loan needs to be on the books for 120 days for most places so the finance people can get the full cut of their profits from the sale.

 

I've paid off a number of loans within the first 30 days and not paid a penny of interest.

 

If you have the credit to get 0% financing for .9% you're better off putting the money away.

 

surely we have someone that works/worked at a dealership in financing and pricing can give us the ins.

cfans is like an old jewish or mormon network. We rely on each other for these kinds of things. Need a car answer? come to cfans.

That said the fraternity that is car sales ..and just like magicians these fu**ckers don't wanna let the cat out of the bag.

By the looks of this thread no one has a clue and giving a bunch of anecdotal stories about one or two sales they have been a part of the the last x years. Car guys are doing thousands a year, 5-10 in a weekend kinda thing.

lets hear from them to clean out the conjecture.

 

I sold cars.

You will not get a better price by paying cash. That's BS. They want you to use their financing, ford motor company or whatever. Say you will use them, cash in on the incentives then pay off the car after 30 days.

The dealership won't be given their cut if you pay it off before 120 days, so they might even offer you something under the table if you wait out the period (gift card or something).

 

Wait, you just said cash won't help you get a better price. So, then why do you say finance and pay of in 30 days? Why not just pay cash then?

 

The dealership can get an incentive/rebate from the motor company if you use in house financing to lower the price of a car. You will not get this if you pay cash upfront.

I just helped my best friend buy a car. He used their financing, at 4.9% even though with his credit score he could get 1.9% elsewhere. Why? Because they took 3 grand off the car.

In 120 days he will go to his credit union and refinance at 1.9. He would do it after one month, but the dealership offered him a $200 gift card if he doesn't refinance for 120 days. Even with the additional interest, he came out with another $70 or so so it was worth it.

 

Buying new and used is different. Used "incentives, rebates, discounts ect" don't exist. But on a new car there is reason to use inhouse financing.

You're playing a game. They think they're going to make money off the back end, so the price goes down.

 

CCorn,
Dealerships won't dip below their break even point just because you use inhouse financing, will they? My understanding is you can get their best offer using either cash or financing. Is that true? Is it just easier to get the best offer using inhouse financing vs cash?