Reply to What to expect when paying cash for new car?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]
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.[/quote]

Alternatively, let them score the loan, [b]make sure it has no early payoff penalty[/b], 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.[/quote]

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

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