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It's simple. The dealer makes money on the finance deal so you can negotiate a better price on the car. Wait 30 days for loan to clear and then pay it off
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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I have done that before though it was 13 years ago, and there was no need to wait 30 days. I bought the car with dealer financing Saturday and mailed the check on Monday.
I am looking to buy a new vehicle at the end of the year (Sometime in December). I know, it's really early but I want to start researching now and monitor prices through the year.
So, I'm not new at buying cars but it never hurts to get other opinions so I can possibly get a better deal.
Was planning on emailing several dealers (~5-10) in December to see who seems receptive of offering a better deal. Problem is, I want to test drive. How can I test drive and not seem like a jerk for not wanting to discuss particulars (price, etc.)? Normally would not care and if it was with a dealer I'm not going to purchase from it would be easy. Just seems difficult if I had to go back in there 1-2 weeks later and do business (maybe even with another salesperson) if that dealer happened to give me a lower price.
I've heard varying options about paying cash. if the dealer gives a good interest rate (my credit is at least upper 700's) could I go ahead with the loan and then just pay it off a few days later? Anyone ever done that?
I am guessing I could just tell the dealer at the very end that I have cash but I thought I'd heard of them then changing parts of the deal???
Again, I'm way early but would love to hear any other tips or suggestions.
Thanks
1. Always get a pre-approved loan from a credit union. They will give you a blank check.
2. Dealers have a fine print that has low APR loan or cash back. Take the cash back and use the credit union check.
3. Create a fake email and google voice account and use that for Costco car buying or true car. Costco car buying service will direct you to Internet fleet manager, skipping those car salesman.
4. Take test drives, look into electric cars, watching videos on YouTube like "Alex on Autos."
5. Search for used cars on the models your looking for to gauge resell value. Search every month to see how much that model depreciate. Models that have heavy depreciation are better buying slightly used. Models that hold up should be bought new.
I am looking to buy a new vehicle at the end of the year (Sometime in December). I know, it's really early but I want to start researching now and monitor prices through the year.
So, I'm not new at buying cars but it never hurts to get other opinions so I can possibly get a better deal.
Was planning on emailing several dealers (~5-10) in December to see who seems receptive of offering a better deal. Problem is, I want to test drive. How can I test drive and not seem like a jerk for not wanting to discuss particulars (price, etc.)? Normally would not care and if it was with a dealer I'm not going to purchase from it would be easy. Just seems difficult if I had to go back in there 1-2 weeks later and do business (maybe even with another salesperson) if that dealer happened to give me a lower price. Test drive what you want to see and drive. Sometimes it pays to test drive multiple trim levels of same car and discover one has a particularly more comfortable seat... Bottom line is, identify what you want so when an incentive comes along or you decide it is time, you are prepared.
I've heard varying options about paying cash. if the dealer gives a good interest rate (my credit is at least upper 700's) could I go ahead with the loan and then just pay it off a few days later? Anyone ever done that? Dealer really doesn't care cash/finance other than if you are foolish and let them "bump" the rate up. Look for 0% or subsidized rate and compare against your invested money. Unless your money is under the mattress, we will assume it is earning interest. If you can get lower rate than what you are earning, buy with lenders money. Simply do the math, make the least expensive decision. With a credit score that high, you apparently know how to make good decisions already.
I am guessing I could just tell the dealer at the very end that I have cash but I thought I'd heard of them then changing parts of the deal??? Only if the rebates or incentives are dependent on financing through manufacturers financial arm.
Again, I'm way early but would love to hear any other tips or suggestions.
Thanks
As far as getting a good deal, I hate getting all the spam and crummy calls from every place I contact, so I only contact one after I have decided what I want. Finding the car I want on a lot, then go in with stock number in hand.
"I want to buy this vehicle. I will offer you invoice less any applicable rebates. If you approve this deal, confirmed with a copy of the invoice, I will grant you perfect 10's on your customer satisfaction survey when it comes. If you can't do it, I won't waste your time. Can I have a credit application please?"
I wanted to jump in and explain one reason why you might get the best deal financing. A lot of the time this deal comes from the manufacturer and not the dealership, so it is out of the dealer's hands. I work for GM. As a current example, we are offering a $2,000 down payment assist incentive on some of our models right now. The caveat is you have to go through GM Financial to get it. This effectively lowers the transaction price by $2,000, and that $2,000 comes from GM, NOT the dealer. If you decide not to go through GM financial there is no way the dealer is going to be able to come down $2,000 to compensate for this difference.
If the OP was going to buy one of our cars included in this deal it would absolutely make sense for him to finance in order to get the extra $2k off of what he negotiated, and then pay it off soon after.
There are certainly shady car dealers out there, but sometimes their hands really are tied.
Don't even get me started on how confusing our bonus tag program is for consumers.
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Don't overthink this...
