Buying a new vehicle pay cash or finance then just pay off?

When they ask if you're paying cash or need financing just say you haven't decided yet and would be interested in seeing if there's any incentives. If they really are pushing financing to their sales team and think you're on the fence, then maybe they give you something - either some discount or a 0% interest for x months kind of promo. Obviously if you can get a 0% interest promo, then just let your cash make some interest in the meantime.

Doesn't hurt to ask and find out. If they don't offer anything, you can always fall back on paying cash.

If you want to go one step further, you could get pre-approved financing through a bank, or wherever you can find the best deal, and then let the salesman know you've got outside financing lined up. If they really want to keep your loan in-house, then they may be motivated to make a better offer to top the financing you already got.

If they give you a great rate, it's not the worst thing in the world to carry some debt for a little while. There's value to keeping that cash liquid should you need it for other emergencies. Can always pay it off whenever you feel like it.

My ex MIL will take out a loan with the incentives from the stealership, and then pay it off in the 1st or 2nd payment.

Focus more on avoiding stealership add-ons like nitrogen filled tires, VIN etching, etc.

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There usually is not a pre-payment penalty, but they will often require you to make 3-6 payments in order for the rebate to stay in effect.

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Once the deal is done, the buyer gets the rebate. Buyer can pay off the loan immediately without penalty.

The dealership’s bonus or commission is reliant on the financing being in place for a minimum period of time, so the dealership tells you that you cannot pay it off early.

Get the best rate at a credit union you can find and keep that in your back pocket. When they give you your quote tell them they need to match that number.

Our cash is in a 60% MM and 40% ETFs account with a 10% return so I financed and have the payments drafted from there.

My warranty paid for itself 3x over. Strong disagree depending upon vehicle

I’ve done all three. Finance, cash, and lease.

The most gratifying thing is writing a check instead of peddling with financing, and seeing a paid off car in the driveway for as long as you want to own it.

You will get different opinions. Having full ownership of the car is gratifying, but the argument can be made to invest the money and make more….but what if a crash happens? I would do what is best for your comfort zone.

My last purchase I wanted to pay cash as a returning customer, but the dealer offered me a three year lease with half paid up front for a discount. I would invest the other half and could walk away at the end of three years, pay the other half at discount, or trade it in.

I have a relationship with the sales manager and point blank asked what is in it for him to do the lease at a discount. He said if I pay cash for outright ownership, the chances of me returning are significantly lower than if he got me in a lease. It’s much harder to sell a car to someone off the street than to someone who returns the car when the lease is up. Repeat customers are preferred.

Do what makes you the happiest and don’t let outside influences dictate what you should do.

A couple of times I've asked about the 0.9% or similar rate promoted in car dealer ads.

Each time, they said I could get the low rate OR like $2,500 manufacturer rebate. Each time, I took the rebate and just paid for the car.

When I did finance cars, I lined up the loan through my credit union. They were so easy to deal with.

Today, the better incentives are usually tied to financing.
I typically finance to get incentives then pay off when I get 1st note

Paying cash is never a bad idea but it might not be the best decision. I’m paying the 5% for 60 months because I’m making much more than that investing the money right now.