Quote:
Originally Posted by Dave
I have paid cash for nearly every car I've owned in the last 30 years. There are times when a significant discount is offered if the car is financed. Typically only 3-4 payments are required and interest can't be jacked up beyond normal levels, so some savings is still realized with financing. We did this with the two 2022 Hyundai cars that we bought, back when supplies were short.
One way to ensure a decent trade-in value is to get a quote from one of the companies that offers to buy cars. If the trade offer is too low, sell the old car, rather than trade it.
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One should make sure to read the loan documents to ensure that there is no pre-pay penalty, despite what the dealership finance person might say. They may tell you need to make 3-4 payments before re-financing or paying off the loan, but often this isn't the case...you can re-finance/pay-off immediately. The 3-4 payments is typically to allow time for the dealership to get their incentive from the bank...I'd be surprised if any loan without a pre-payment penalty stipulates that you need to make 3-4 payments first. Never believe what the finance person says is on the paperwork without first reading the paperwork yourself.
Also, see how much they'd let you put on a rewards credit card...usually a couple thousand max, but still points/cash back to you.