Reply to Is it best financially to buy new car in cash?

Forum Index » Money and Finances

Reply to "Is it best financially to buy new car in cash?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Sometimes they reduce the price if you use their financing. It could be worth it to take out financing then pay off the loan in a month or two. [/quote]

I know a guy who does this.  Signs up for a really bad 72 or 84 month loan with a high APR.  The dealer will discount the price in the car because they think they will make a ton on the financing.  I’m sure he’s not the only one that does this.[/quote]

We do that every single time. I tell the finance guy that we'll take terrible terms in exchange for a discount. Dealership makes the first payment (they need one payment to get their rebate) and then we pay off the whole thing. [/quote]

The dealer knows what is going on. They still get the rebate from the manufacturer. PP's "guy" friend isn't putting one over on the dealer, they are well aware and don't care. [/quote]

That's the point. We let them make the first payment so that they can ensure they get their payment from the finance company. If you pay it off before then, they don't get a rebate. We learned this one years ago from a finance manager who said they'd been screwed by these deals in the past and now insisted on the dealership being responsible for the first payment.  [/quote]

So is this a good way to “negotiate” these days? Just say you want an 84 month loan and they’ll offer to make the first payment for you? And this will be more likely to make them bend a bit on the price?

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics