re: Car Buying with Cash

Why would the dealership care or give you a deal because you’re paying cash? It is of no benefit to them for you to do so.

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Do NOT tell them you are paying with cash until after you have agreed on a final price in writing. They are going to ask you how you are going to pay early on the negotiation to try to feel you out but just tell them you will LOOK at financing options when we get to that point. Lie to them & move on with the negotiation.

In my last negotiation after I told them at the end I was paying cash, I had the salesman go to his manager & come back out to me to actually say "I have spoken with my manager & we both agree we would rather you finance the vehicle instead". I laughed at him & said I am ready to go pay now. You can't make this stuff up.

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My experience has been that the dealership would rather you finance through them and give you a better deal when you do. I've been prepared to write a check for the last 4 or 5 vehicles purchased from dealers and all have asked me to finance for a better deal.

I've learned that the dealership gets incentives from the financing company if they hit a certain level of financing. The dealerships have asked that I not pay off the vehicle for at least 6 months otherwise there will be a clawback to them.

So, don't tell them you plan to write a check. Let them work out the best deal believing they are going to finance. If they tell you that is the deal ONLY if you finance, then finance and pay off the vehicle on the first payment if you were prepared to pay out of pocket.