#16
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My understanding is that once going through dealership financing, they get their interest (in full for the loan term) no matter how quickly you pay after signing. I think financing through a credit union-type institution allows for interest to be paid at the rate of the agreement until the loan is paid, ie if paid before the term of the loan, paid interest amount paid will be lower. |
#17
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#18
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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. |
#19
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It was surprisingly and pleasantly hassle-free. No drama. Got a darn fine price on it too, based on what I saw elsewhere. |
#20
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Perhaps it changed, and may depend on location and timeframe from my last market research on car loan. When we purchased our last car, about 5 yrs ago, all dealerships that we checked the payment terms had an “early payment penalty” that basically prorated the interest for the term to the time of the loan close up. Maybe things have changed? This was not the case for the interest payments at the CU.
If the above not accurate any more or does not apply to all markets, no intention to misinform, just sharing my experience. OK |
#21
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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. |
#22
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Ryun or any others here that are in the business - are you willing to provide a pain free, forum member purchasing experience? I absolutely despise the car buying process and have found nearly every dealership within 100 miles of me to be unpleasant to deal with.
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#23
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On my wife's last car, got ready to pay cash, then sales manager stuck his head in and said there was an extra $500 discount on vehicle price if I financed. Simple interest on balance. I asked how many payments did I need to pay before paying it off. He said do at least 2, and that's what I did. So be alert to that.
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#24
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__________________
2003 CSi / Legend Ti / Seven 622 SLX |
#25
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But the dealer isn't making 100% of the interest on a loan, with the bank servicing it for free and carrying 100% of the risk. The dealer makes an origination fee, which is a fraction of the total loan value. |
#26
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I can also let you know if it makes sense to ship a car with the associated cost. Transport has gotten a bit more expensive and some brands/models just don't have the margin to make some long distance transactions cost effective for the consumer. Some banks will have a small processing fee for very early termination usually in the ballpark of $35-50 but all auto loans are simple interest so you only pay for the interest used. Leasing of course is a different animal altogether. |
#27
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I havent listened to this in over 5 years, but i remember it being very informative about the car salesmen world. Worth a listen...
https://www.thisamericanlife.org/513/129-cars |
#28
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I've purchased a couple of vehicles using cash only and by going through the Internet sales manager. I personally would not disclose anything about my preferred method of payment until some hard number is reached. If that's not sufficient to arrive at a fair negotiated price, or if there are some rebates that are not available to me based on a cash purchase, I'm moving on. A bank check has always worked for me.
__________________
“A bicycle is not a sofa” -- Dario Pegoretti |
#29
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You can spread your net far and wide and actively play the dealerships off each other. I would basically be in the same situation next time I buy a car. I want to keep my Subaru going till I can give it to my son, and if I don't want to I will have no need to take a loan. But if loans are out there at 0% or 0.9% and investment returns are great I'll get a loan. Several times I chose the car I bought back when I did need a loan based on which one I could get a great rate on. 2 out of the 4 cars I've owned I managed to get a 0.9% rate. |
#30
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