Finance or cash

[Anonymous]

If you can buy a basic Kia at cash, would you do it for finance considering uncertainty of economy? Plan was to buy after new year's bonus but old car isn't safe to drive anymore so i'll have to use part of the savings to buy.

[Anonymous]

You will likely get a better deal on the price of the car if you finance. Dealerships see it as another way to make money and will sometimes jack up the price even more if you try to pay cash.

[Anonymous]

In my experience, prices have been firm with no negotiations. I wouldn't finance with the current interest rates; however, that really depends on how much you have in your savings and how comfortable you are with parting with the funds to pay cash for the vehicle.

[Anonymous]

Anonymous wrote:You will likely get a better deal on the price of the car if you finance. Dealerships see it as another way to make money and will sometimes jack up the price even more if you try to pay cash.

Though you never really win when dealing with car dealerships, one tactic if you have cash, is to haggle about price and financing, maybe settle in for a 72 month loan and once you receive first payment bill, pay the whole thing off.

[Anonymous]

Finance, then pay it off later. Dealerships make money if they originate financing, so are more willing to negotiate

[Anonymous]

Paying cash for anything is for the Poors.

Because they can’t get credit.

[Anonymous]

I only pay cash for my vehicles. Smart people buy used, pay cash, and have no car payment.

[Anonymous]

Shop around with local credit unions for the best rate. Use that as a negotiating tool. A dealer has no incentive to offer the best rate and there is a possibility they will mark up the rate to take advantage of the unsuspecting buyer. It’s also possible to use the financing offered by the dealer and then immediately refinance with better terms.

In the before times you could get a a decent rate coupled with a rebate or other form of incentive discount from the manufacturer’s captive lender and then turn around and pay it off within 30 days. The dealer would take a charge back from the lender but you effectively pocketed $500-1000. Also consider using a rewards credit card as a portion of the down payment for miles or other credits.

Circumstances may have changed but dealers used to be able to earn more on the backend of a sale with a financing deal and therefore would have slightly more room for negotiation on the sale price. Cash was never king on the sales lot.

[Anonymous]

Anonymous wrote:I only pay cash for my vehicles. Smart people buy used, pay cash, and have no car payment.

Because your credit is so bad you couldn’t get financing, you mean. Or you’d be paying 21% or more. That’s why you pay cash and only buy used.

[Anonymous]

Anonymous wrote:Shop around with local credit unions for the best rate. Use that as a negotiating tool. A dealer has no incentive to offer the best rate and there is a possibility they will mark up the rate to take advantage of the unsuspecting buyer. It’s also possible to use the financing offered by the dealer and then immediately refinance with better terms.

In the before times you could get a a decent rate coupled with a rebate or other form of incentive discount from the manufacturer’s captive lender and then turn around and pay it off within 30 days. The dealer would take a charge back from the lender but you effectively pocketed $500-1000. Also consider using a rewards credit card as a portion of the down payment for miles or other credits.

Circumstances may have changed but dealers used to be able to earn more on the backend of a sale with a financing deal and therefore would have slightly more room for negotiation on the sale price. Cash was never king on the sales lot.

I don't think nowadays dealers are negotiating much. The other thread says Toyota dealers are charging 6K over MSRP