Quote:
Originally Posted by FRSCoupe
If I pay cash do I bypass the finance department and their BS trying to sell options I don't need..
Do dealers actually prefer cash or finance to close the deal? I heard with financing they also make a bit of finders fee or something.
So if I say I am buying, I don't need financing, is this an advantage to get a better deal? (buying a car in general)
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Dealerships make money one of four ways. MSRP, Financing, Trade-In, Add-ons (accessories, extended warranty, etc). By paying cash you're eliminating their ability to make money via financing. If you actually have thirty thousand dollars sitting in the bank, I highly suggest financing the car and paying the 1.9 or 2.9% that most banks will charge you (with good credit), and throwing all or most of that money into a mutual fund with Vanguard, Fidelity, etc. You can definitely earn more with that money working for you in the stock market with low-risk funds than the 2 or 3% you will pay to obtain financing. If you just pay cash for the car outright, will you still have an emergency fund to dip into in case something should happen? Just things to think about.