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Is a car purchased from a used car lot lower when paid for by cash rather than financed?
Posted on 5/4/24 at 4:14 pm
Posted on 5/4/24 at 4:14 pm
Is a car purchased from a used car lot lower when paid for by cash rather than financed? This is assuming the financing would be arranged by the seller.
17
Posted on 5/4/24 at 4:16 pm to tigersbb
The sales price is $40k.
You either pay 40k then or finance 40k over X years, which will cost more.
You either pay 40k then or finance 40k over X years, which will cost more.
Posted on 5/4/24 at 4:23 pm to patnuh
quote:
The sales price is $40k. You either pay 40k then or finance 40k over X years, which will cost more.
It’s not that cut and dry. If it’s 0% interest (rare on used) then he’s saving money by financing as his dollar will have less buying power in the future as it does today provided inflation holds at a positive rate. If his interest paid over the life of the loan is less than inflation, he saves money there too.
ETA: ultimately his question really is will he get a better deal with cash. Which is only something the dealer can tell him.
This post was edited on 5/4/24 at 4:25 pm
Posted on 5/4/24 at 4:25 pm to 9Fiddy
quote:
It’s not that cut and dry.
He can’t figure out if financing is more costly in general than not. Don’t make this too complicated.
Posted on 5/4/24 at 4:27 pm to tigersbb
We really need age verification added to user profiles.
Posted on 5/4/24 at 4:29 pm to Murray
You’ll generally pay less in cash, because you avoid interest rates.
Posted on 5/4/24 at 4:47 pm to tigersbb
Buddy of mine's philosophy was to negotiate a financed price then demand the same price via cash. Idea being that the car companies would go lower on their price if they were getting a cut of the finance deal. That was new cars and probably 25 years ago, so YMMV.
Posted on 5/4/24 at 4:49 pm to tigersbb
Ever heard of interest?
Financing is more expensive in the long run.
Financing is more expensive in the long run.
Posted on 5/4/24 at 4:50 pm to FCP
Does this make sense?
If I financed five years ago i would think I would be paying less than if I paid cash today based on inflation?
If I financed five years ago i would think I would be paying less than if I paid cash today based on inflation?
Posted on 5/4/24 at 4:53 pm to tigersbb
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.
This post was edited on 5/4/24 at 4:54 pm
Posted on 5/4/24 at 4:54 pm to patnuh
quote:
He can’t figure out if financing is more costly in general than not. Don’t make this too complicated
That's not what I asked. My question is whether the seller will be more flexible when getting full payment in cash at the time of sale rathe r than ultimately getting more on a delayed basis and hoping the payments are made by the purchaser.
Posted on 5/4/24 at 4:56 pm to tigersbb
quote:
That's not what I asked.
Then the answer is no. Most used car dealerships are factoring in the finance charges they will make when they are trying to make a deal.
Posted on 5/4/24 at 4:57 pm to Murray
quote:
e really need age verification added to user profiles.
You can take you fricking snarky comment and shove it up your fricking arse. Read the goddamned fricking fricking question I asked and not jump to a frickin conclusion. You fricking piece of shite living on mocking others . What a worthless turd you are.
Posted on 5/4/24 at 5:00 pm to tigersbb
They want you to finance. Don’t mention cash until the last minute when the price of the new vehicle is final and trade in value is also final.
Posted on 5/4/24 at 5:02 pm to tigersbb
Xanax
Posted on 5/4/24 at 5:03 pm to tigersbb
If you do a cash buy the dealer might go lower because they’ll cook the books.
Posted on 5/4/24 at 5:06 pm to IndianPower
quote:
Xanax
frick you too. You guys are worthless pieces of shite who jump into every mother fricking thread to insert your snarky sophomoric comments.
Posted on 5/4/24 at 5:07 pm to dkreller
quote:
If you do a cash buy the dealer might go lower because they’ll cook the books.
Pretty hard to do without the purchasers consent. The amount needs to be recorded so that tax can be paid.
Posted on 5/4/24 at 5:09 pm to IndianPower
quote:
Xanax
Nap time
Posted on 5/4/24 at 5:10 pm to BigBinBR
quote:
Pretty hard to do without the purchasers consent.
How is the buyer involved in a dealership’s accounting practices?
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