OT: Paying cash for a new car, tips?

[mdeth1313]

Originally Posted by buddybikes

What they didn't add the paint sealant for another $800.

no, no. That's optional!

[mdeth1313]

...and I went to look at a couple of used cars after work (from the dealer I've purchased our last 2 (new) cars from. Test drove both (and they actually let me go by myself), came back, made an offer and put a deposit down. We pick it up next week. Must be a reason I keep going back.

[cnighbor1]

My local big Ford Dealership has lower prices online
A great way to avoid salesmen
Try areas outside your area
Fly in Drive home

[.RJ]

Originally Posted by PaMtbRider

Outside of buying a home, a car is the most expensive purchase many people make. It's a shame the current business model for buying a car is so miserable.

You would think the internet and transparency and easy access to information would have forced them to change, but so far no.

It sucks that they're locked in with their franchise through ridiculous lobbying and people still need cars no matter what.

[Louis]

Originally Posted by PaMtbRider

Outside of buying a home, a car is the most expensive purchase many people make. It's a shame the current business model for buying a car is so miserable.

Not necessarily...

https://carbonfibergear.com/blogs/ca...expensive-bike

[Ralph]

The words "paying cash" for a new car is meaningless. Car dealers always get cash, even if you finance. The bank or finance company gives them the cash.

[fourflys]

Originally Posted by Ralph

The words "paying cash" for a new car is meaningless. Car dealers always get cash, even if you finance. The bank or finance company gives them the cash.

but the issue is dealers get "extra cash" if you use the financing they set you up with.. so I would argue it matters to the dealer if you pay cash or finance with them.. now, I would agree if the choice is either paying cash or using your own financing you've secured prior to getting to the dealership.. I mean, there's a reason they are so eager to "find you a better rate"..

[Ralph]

Originally Posted by fourflys

but the issue is dealers get "extra cash" if you use the financing they set you up with.. so I would argue it matters to the dealer if you pay cash or finance with them.. now, I would agree if the choice is either paying cash or using your own financing you've secured prior to getting to the dealership.. I mean, there's a reason they are so eager to "find you a better rate"..

Sure.....Dealers would rather finance. My point was....I remember being proud to say I can pay cash and it meant something. Now it just means you will cut off some of the dealer profit, maybe hurting your deal.

[fourflys]

Originally Posted by Ralph

Sure.....Dealers would rather finance. My point was....I remember being proud to say I can pay cash and it meant something. Now it just means you will cut off some of the dealer profit, maybe hurting your deal.

fair enough.. I'm not worried about the dealer's deal.. they aren't going to sell you that car for any less than they want to.. I paid cash a I didn't want to have a car loan and pay a car payment..

BTW- I still think it means something if someone can pay cash since I'm certain the vast majority of car buyers cannot..

[.RJ]

Originally Posted by fourflys

fair enough.. I'm not worried about the dealer's deal.. they aren't going to sell you that car for any less than they want to.. I paid cash a I didn't want to have a car loan and pay a car payment..

BTW- I still think it means something if someone can pay cash since I'm certain the vast majority of car buyers cannot..

Taking the dealer financing and then paying it off in 90 days will save you cash money in the end though.

Sometimes "paying cash" is like stuffing your savings in a mattress.

[Mr. Pink]

Originally Posted by Ralph

Sure.....Dealers would rather finance. My point was....I remember being proud to say I can pay cash and it meant something. Now it just means you will cut off some of the dealer profit, maybe hurting your deal.

No, it's hurting their deal.

[.RJ]

Originally Posted by Mr. Pink

No, it's hurting their deal.

In this case, everyone can win a little, or everyone can lose a little.

[AngryScientist]

The worst situation to be in is NEEDING a car. In that case you are stuck with the terms you are faced with.

Best to keep an eye on the market and watch for the deals. I havent bought a car in many years now, but I think deals with very low % financing still pop up. I think I bought my first new car for 0.5% or something awesome like that. It's a no brainer to finance with those kind of terms.

[fourflys]

Originally Posted by .RJ

Taking the dealer financing and then paying it off in 90 days will save you cash money in the end though.

Sometimes "paying cash" is like stuffing your savings in a mattress.

Only if you are paying more because you are paying cash.. when I buy a car, I go in with a price in mind and get a deal before I mention payment options.. if the dealer then tries to stick on an additional price based on paying cash, I walk..

Now if you mean I can have my cash in an interest-bearing account for an extra 90 days, then maybe.. but how much is $30 or $40k going to earn in 90 days unless you have an insanely good return product?

Also, some financing has a minimum time before you refinance or pay it off, esp dealer financing..

[buddybikes]

Originally Posted by .RJ

Taking the dealer financing and then paying it off in 90 days will save you cash money in the end though.

Sometimes "paying cash" is like stuffing your savings in a mattress.

Perhaps not, those first 90 days be paying higher % of the interest.

Interest on a car loan is often front-loaded so that early payments pay more toward interest and less toward the paydown of the principal loan balance. Although a longer-term loan can lower the monthly payment, the total interest paid is higher, leading to a higher total cost for the car.