Need Your Advise. Looking to buy a New car CA$H

[MadManofBethesda]

More important that discussing (or not discussing) finance options with the dealer is not discussing a possible trade-in that will accompany the purchase of a new car. Always treat these as two completely separate transactions. Complete your negotiations on the price of the vehicle you are purchasing before discussing a trade-in whatsoever.

[Huckleberry3911948]

since credit is nearly free, flashing cash does not get u the deals it used to.
been there done that.

[Smoke_Jaguar4]

See if your bank, credit union, or insurance company offers a Car Purchasing service. You tell them what you're looking for, then they go out and contact local dealers and negotiate the best price for you. It's in their interest for you to get the best price on the car if they're financing it.

After you buy the car, pay off the loan in cash.

[30STM]

the only part i dont understand from some of you telling me to get a loan is why? if I have the cash and as many say its not going to change the amount of the car.

To the others thank you for the info about how to negotiate, what not to mention and to stay away from the subject of finance till the deal is done.

[jaypee]

Originally Posted by Smoke_Jaguar4

See if your bank, credit union, or insurance company offers a Car Purchasing service. You tell them what you're looking for, then they go out and contact local dealers and negotiate the best price for you. It's in their interest for you to get the best price on the car if they're financing it.
.

Why is that?
Don't they make more interest if you take out a bigger loan?
How do you know they are getting you the "best price" instead of a pre-negotiated one w/o shopping around yourself?

[Smoke_Jaguar4]

Originally Posted by jaypee

Why is that?
Don't they make more interest if you take out a bigger loan?
How do you know they are getting you the "best price" instead of a pre-negotiated one w/o shopping around yourself?

Right now, prime car loans are extremely cheap (2% - 4%), so the banks aren't making a lot of money if you overpay for the car. However, overpaying exposes the bank to two risks:

First, the higher the payment, the higher the chance you may default on the loan. It will costs the bank money to retake the vehicle.

Second, once they have the vehicle, they will now need to sell it to recover the amount they originally loaned you. If you overpaid for the vehicle, then they will sell it for a loss.

I've used this service before through my credit union and it saved me a bunch of time and research, and the price they got me was just above invoice. One of the advantages is they can learn all of the special rebates dealers have (which if you don't know the dealer will just pocket).