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I know not everyone can do this, but if you can pay cash, especially for a used car, I think that is the better way to go. It makes for a simpler transaction and one with fewer tricks and loopholes. Just a straight up deal and you know the cost.
You would think so, wouldn't you? but not so, They can and will repossess the car if you don't alter the financing to their rates.. even after the contract is signed. I'm not sure how they get away with it, but I have seen it happen...
Actually they are required to get your social security number for transaction over $10,000. So it can be reported to government/IRS. It's the patriot act. But you can request them to not run your credit if you're not financing through them.
I bought a car recently. I paid in full with personal check. I didn't finance with them, and I still had to provide my SS#. They did not run my credit. I signed paperwork, gave them a check. Then took the car home. Easy transaction. No problems.
However, laws designed to combat money laundering by terrorist organizations do require dealers to check the identification of customers paying more than $10,000 in cash and to report those transactions to the Internal Revenue Service on Form 8300. Paying with a cashier's check, money order or traveler's check also qualifies as a cash transaction, according to the IRS. (Oddly, a personal check does not qualify as cash, according to the IRS form's instructions. But it's the rare car dealer who would accept a personal check for a vehicle purchase.)
For the last two vehicles I purchased the dealer was able to beat the best rate I was able to find by over half a point. Difference is that we negotiated the price of the vehicle completely separately from the financing. Why in the world are you folks combining the two. Never ever negotiate finance terms until the drive out price of the car has been negotiated!
If the dealer can match or beat your existing best rate with all other things remaining neutral, why would you throw that better rate? It boggles the mind.
You would think so, wouldn't you? but not so, They can and will repossess the car if you don't alter the financing to their rates.. even after the contract is signed. I'm not sure how they get away with it, but I have seen it happen...
Then you can sue them. Unless you've gone to some shady note lot, the dealership doesn't repossess cars - the bank that owns the note does.
I purchased a cpo Honda recently. I went in with financing already approved by Lightstream at a 2.39% rate. After agreeing to a price, the sales manager asked how I would be financing the vehicle. I told him I got approval at 2.39% already. He asked if I would finance through them if they could match (or beat) the lightstream rate. I said sure. They ended up getting me a loan at 2.04%.
Even if you get outside financing in place, it never hurts to let them match or beat the rate you go in with.
Where do you get this stuff? Plenty of dealers accept personal checks for cars. It's easy to verify funds.
Actually it's impossible to verify funds in a MEANINGFUL way. The business calls the bank, the bank says "the account has sufficient funds at this point", and the moment the car drives off the lot the buyer calls their buddy who drains the bank account, before the seller can get their money.
And no, the bank won't 'hold' the money for you just because you called.
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