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Old 05-16-2018, 09:51 AM
 
Location: West Madison^WMHT
3,174 posts, read 2,749,385 times
Reputation: 3822

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Quote:
Originally Posted by Stonepa View Post
I make it real simple for the dealer. I buy new cars (when I can) through the Costco purchase program. That lists the discounted price. Done. If they try to lead me astray I have no issue with telling the sales manager to find me a salesman who listens to the customer rather than the one I am dealing with.
Costco and American Express both have pretty good programs for new cars.


Quote:
Originally Posted by Coldjensens View Post
Yes most dealers want you to finance.
In my experience buying from new car dealers (Chrysler, Infiniti, Dodge) they didn't really care whether I financed through them or just brought them a cashier's check for the negotiated total.

Quote:
Originally Posted by Coldjensens View Post
However it is a good idea to play along. Negotiate the best total price let them discuss payments if they want to, but tell them you are interested in the purchase price more than what the monthly payment is. Then once you have the best price you can get, tell them you decided you do not want to pay interest and fees on a loan and will just pay cash. Sometimes they will come back with 0% interest and no fees, or an interest/fee combination so low it makes more sense for you to invest the money and make payments.
This is the key-- negotiate based on total purchase price, not monthly payment.

If you look at the fine print on the "0% for 60/72 months" offers, usually it says something like "$1500 cash back or choose 0% interest". If you can swing the cash, are you better off taking the $1500 now, or leaving the money invested and making monthly payments?

For people with bad credit, taking the loan might sound like a good idea (to build up a positive credit report), but a poor credit score disqualifies the buyer for the 0% offer.
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Old 05-16-2018, 01:28 PM
 
Location: Columbia SC
7,973 posts, read 6,728,842 times
Reputation: 10720
In my last new purchase (2017 Ford Explorer, $30K0 I was paying cash. We got to within $1K on the price. The finance manager told me they could meet my price if I financed. He said finance it, drive it away, when first payment comes do it will include the pay off (the price we agreed on), just pay it off. It went down that way.

Reason is there are different profit centers at dealers and finance is its own profit center. They got credit for doing the financing. Did not matter if I paid it off. That was Ford Motors Credit issue, not the dealers.
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Old 05-16-2018, 01:34 PM
 
Location: Grosse Ile Michigan
24,728 posts, read 59,646,697 times
Reputation: 26873
Quote:
Originally Posted by Nonesuch View Post
Co

If you look at the fine print on the "0% for 60/72 months" offers, usually it says something like "$1500 cash back or choose 0% interest". If you can swing the cash, are you better off taking the $1500 now, or leaving the money invested and making monthly payments?
I do not know, how much can you make on $50,000? My 401K is at 13.7% for the past 12 months. If you could maintain that, you might make enough to make the payments and ultimately get the car for free.

Free is good. Almost free is still good.


My investment activity consists of sticking money in my 401K and ignoring it. have no idea what kind of return you might be able to sustain over a 7 year period. of course you have to pay taxes on the gains
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Old 05-19-2018, 06:19 AM
 
Location: Boston
5,097 posts, read 1,461,510 times
Reputation: 3735
paying cash means nothing anymore
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