re: Is a car purchased from a used car lot lower when paid for by cash rather than financed?

quote:

---

Is a car purchased from a used car lot lower when paid for by cash rather than financed?

---

If you are talking about agreed purchase price then no. The used car lot makes money off of financing. If you tell them you are paying cash then they actually might try to stick at a higher price because they know they won’t make finance charges off of you.

New cars it’s sometimes better to get it financed because there may be incentives to have it financed which reduces the purchase price. Then when the first note comes, just pay it all off. You just have to make sure that the loan doesn’t have a penalty for early payoff.