What to expect when paying cash for new car?

[Anonymous]

What is the process for paying cash at a dealer for new? Will they just take a check?

[Anonymous]

Check or bank check. Depends on the dealer. Usually you can put a few thousand on a credit card.

[Anonymous]

Cashier's check from your bank or direct electronic transfer of funds. No personal check, and only a small amount (usually around $2k) can go on the credit card.

The most important thing to know is DO NOT tell the dealership you are paying cash until you've settled on a final out-the-door price, including whatever BS fees they insist on inserting. Dealerships make their money off loans, and if they know they're not getting a loan with you, they will be far less willing to negotiate or waive fees. Pay attention to how they'll try to frame the sale in terms of monthly payments and whatnot and continuously ask you about what kind of loan you're interested in. Firmly guide them back to total out-the-door price.

[Anonymous]

Anonymous wrote:
The most important thing to know is DO NOT tell the dealership you are paying cash until you've settled on a final out-the-door price, including whatever BS fees they insist on inserting. Dealerships make their money off loans, and if they know they're not getting a loan with you, they will be far less willing to negotiate or waive fees.

Alternatively, let them score the loan, make sure it has no early payoff penalty, and then immediately pay it off. Maybe even make payments for a few months for the boost to your credit score before paying it off.

Also, with current interest rates, it may be financially advantageous to get a low-interest loan and invest the cash you'd otherwise be handing over to the dealership. There's a huge opportunity cost to not having $30-$50k in the market working for you.

[Anonymous]

I just let them do the loan, then I pay it off a week later. Theye lsoe teh commission on the loan but it's too late by then.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
The most important thing to know is DO NOT tell the dealership you are paying cash until you've settled on a final out-the-door price, including whatever BS fees they insist on inserting. Dealerships make their money off loans, and if they know they're not getting a loan with you, they will be far less willing to negotiate or waive fees.

Alternatively, let them score the loan, make sure it has no early payoff penalty, and then immediately pay it off. Maybe even make payments for a few months for the boost to your credit score before paying it off.

Also, with current interest rates, it may be financially advantageous to get a low-interest loan and invest the cash you'd otherwise be handing over to the dealership. There's a huge opportunity cost to not having $30-$50k in the market working for you.

Don't car loans usually have, if not a "penalty," at least no benefit to paying off early? Aren't they straight interest?

[Anonymous]

Dealer has been personal check for new cars. Carmax required a cashiers check. When Audi had a $1500 cask back of you took a loan, we signed the loan docs and paid in full at the first payment due.