quote:

Originally posted by P250UA5:
But, sometimes the better deal can be had with finance, then pay off early if no penalty.

This I've also heard. Makes lots of sense. Just do the math both ways. The last thing you want to tell your salesman is that you'll be paying cash for a new vehicle. It's like saying, Ok, I'm bending over, please make it quick.

I don’t know how you guys buy cars but clearly techniques vary. lol I have always, since my first new car in 1989, negotiated a price I would pay prior to even engaging in cash or financing discussions.

This entire thread of “better deals with cash” has never been witnessed by me. Every car purchase I have ever had in multiple states (Navy life) has always ended in the finance guys office. It never starts there.

I have never told a car salesman whether I would pay cash or finance. I have said when asked I would listen to any deals. That’s it. Negotiate your price first. To do otherwise is as dumb as entering into the “what kind of payment are you looking for” nonsense. If a car salesman says that to me I nicely tell him if he can’t resist talking to me like I’m an idiot I will find a new dealership. That has always gotten the negotiation back on track.

If you can’t finance at 0% and resist the temptation to just blow the cash you had to buy a car then maybe you should listen to Ramsay.

It is unbelievable to listen to intelligent men say they would pass up a 0% loan because of “feels”. I could throw a dart at a board and find a CD paying 4%. Include all the taxes you want and you are still making money over the course of a 0% loan. Sheesh. Read some books on the subject. This discussion is a huge reason why Americans don’t have much money when they are old. They make piss poor financial decisions because of what? Being afraid of a 0% loan?

Jiminy Christmas folks. If anybody offers you a 0% loan, news flash, take it. If you can’t beat 0% in any investment vehicle then you really shouldn’t be making any financial decisions. lol

quote:

Originally posted by P250UA5:
But, sometimes the better deal can be had with finance, then pay off early if no penalty.

This is THE correct answer.
If you take a loan, the dealer is building interest into their profit so they can lower the vehicle cost to you, if you drive a hard deal. They you just pay off the car in a few months.

quote:

Originally posted by pedropcola:
I don’t know how you guys buy cars but clearly techniques vary. lol I have always, since my first new car in 1989, negotiated a price I would pay prior to even engaging in cash or financing discussions.

This entire thread of “better deals with cash” has never been witnessed by me. Every car purchase I have ever had in multiple states (Navy life) has always ended in the finance guys office. It never starts there.

I have never told a car salesman whether I would pay cash or finance. I have said when asked I would listen to any deals. That’s it. Negotiate your price first. To do otherwise is as dumb as entering into the “what kind of payment are you looking for” nonsense. If a car salesman says that to me I nicely tell him if he can’t resist talking to me like I’m an idiot I will find a new dealership. That has always gotten the negotiation back on track.

If you can’t finance at 0% and resist the temptation to just blow the cash you had to buy a car then maybe you should listen to Ramsay.

It is unbelievable to listen to intelligent men say they would pass up a 0% loan because of “feels”. I could throw a dart at a board and find a CD paying 4%. Include all the taxes you want and you are still making money over the course of a 0% loan. Sheesh. Read some books on the subject. This discussion is a huge reason why Americans don’t have much money when they are old. They make piss poor financial decisions because of what? Being afraid of a 0% loan?

Jiminy Christmas folks. If anybody offers you a 0% loan, news flash, take it. If you can’t beat 0% in any investment vehicle then you really shouldn’t be making any financial decisions. lol

BS. ANY 0% financing from ANY car manufacturer has been in Leiu of giving up a cash rebate. You HAVE to research ALL of the rebates that apply whether you pay cash, finance or lease to obtain the best deal at the time. A lot of car dealers will make leases heavily discounted some months while financed and cash deals are steep. and opposite other months, depending on how much paper they're holding at which interest rates and durations already. My brother was one of the finance guys at one of the largest ford dealers in the country up until a few years ago.

Kudos to your brother but you seemed to have bypassed my point. Negotiate the price first and then discuss how you are paying. It’s pretty simple. My last loan on a car was 1.9% and it didn’t have any gotchas or add ons. If they tell you 0% and then add $$$ to your negotiated price then you got a math problem and a decision.

Once again. In thirty something years I have always negotiated the price first then talked about possible financing. They don’t need to know how I’m paying until I’m actually paying. In my younger less liquid youth I have had loans from my bank, manufacturer financing, and just plain cash. When I used to need a loan to buy a car I had a preapproved “check” in my pocket from USAA. I used whatever source was better after I had a price. My lowest interest rate I’ve ever personally gotten was a .9% and I took that one as well. They didn’t have a .9% or rebate it was just their best rate. If you are correct and no manufacturer ever has offered a straight 0% rate then like I said above, you now have a math problem to figure out.

quote:

Originally posted by pedropcola:
Kudos to your brother but you seemed to have bypassed my point. Negotiate the price first and then discuss how you are paying. It’s pretty simple. My last loan on a car was 1.9% and it didn’t have any gotchas or add ons. If they tell you 0% and then add $$$ to your negotiated price then you got a math problem and a decision.

Once again. In thirty something years I have always negotiated the price first then talked about possible financing. They don’t need to know how I’m paying until I’m actually paying. In my younger less liquid youth I have had loans from my bank, manufacturer financing, and just plain cash. When I used to need a loan to buy a car I had a preapproved “check” in my pocket from USAA. I used whatever source was better after I had a price. My lowest interest rate I’ve ever personally gotten was a .9% and I took that one as well. They didn’t have a .9% or rebate it was just their best rate. If you are correct and no manufacturer ever has offered a straight 0% rate then like I said above, you now have a math problem to figure out.

It's not an add on, it's an additional REBATE. After the deal and price are agreed upon, the rebate is then deducted. O% financing is never 0%.

quote:

Originally posted by jimmy123x:

It's not an add on, it's an additional REBATE. After the deal and price are agreed upon, the rebate is then deducted. O% financing is never 0%.

Huh? I remember I bought a brand new STi, and got 0% financing through Subaru and $4k under invoice. It was indeed 0% financing.

That’s kind of what I was thinking too. Just because Ford does it one way doesn’t mean that is how everybody has always done it. Kind of a broad assertion that I doubt is 100% true.

How about this? If anybody ever offers you a 0% loan with no strings attached you would be foolish financially not to take it? You could put the cash in a shoe box and give it back 3 years later and still haven’t lost anything. Once again, the gist of many posters that “all loans are bad” is wildly simplistic and just untrue.

quote:

Originally posted by Prefontaine:

quote:

Originally posted by jimmy123x:

It's not an add on, it's an additional REBATE. After the deal and price are agreed upon, the rebate is then deducted. O% financing is never 0%.

Huh? I remember I bought a brand new STi, and got 0% financing through Subaru and $4k under invoice. It was indeed 0% financing.

YES, the financing is truly 0%, but it is never FREE. It is always in leiu of an additional MANUFACTURERS CASH REBATE for those that pay cash or don't take the 0% financing terms generally.

For example a Suburban may offer 0% cash back for 72 months OR a $4000 cash rebate or some other rebate or offer for a lease. But the rebates are not advertised, you have to search for those. Unless you ASK the dealer or do the homework yourself they're not going to steer you to something else, IF you came in for the 0% financing. Search rebates and incentives at various manufacturers and see what rebates there are instead of low financing.

Here are ram trucks, look at offer 1 with low financing rate, and offer 3, the rebates are far different.

https://www.ramtrucks.com/ince...tml#/model/CUT202520

quote:

Originally posted by Timdogg6:

quote:

Originally posted by P250UA5:
But, sometimes the better deal can be had with finance, then pay off early if no penalty.

This is THE correct answer.
If you take a loan, the dealer is building interest into their profit so they can lower the vehicle cost to you, if you drive a hard deal. They you just pay off the car in a few months.

The dealer doesn't have the ability to do that. The manufacturer is the financier, they set the interest rate and payment based off of the credit score. They want to keep people in house without going to outside credit (their bank, credit unions etc). They don't allow dealers to step on their rates much at all, if any (depends on brand).

The difference again is the REBATES offered by the manufacturer to steer people into which type of credit they want that month or quarter...Rebates are split into 3 groups. Rebates for cash buyers (or outside financing), rebates for leases, and rebates for financing.......1 term they may want to push leasing, another term they want to push financing, whatever that makes their magic balancing table of money coming back in, work. So they offer a healthy rebate on leasing to push leases, or next term zero percent financing or a large cash rebate if financed to finance more vehicles than lease. Rebates are also called incentives. Rebates are like a coupon at the grocery store, they are deducted AFTER the entire sale of the vehicle (agreed price etc.) is put into the system.

A dealership cannot sell you a car for 4% below invoice without losing money, instead there's a rebate they're not telling you about and you didn't pay attention when signing all of the paperwork in the F+I office.

I worked for Jim Moran way back when, and spoke to him a few times. He was the Southeastern U.S. Toyota distributor. He also owned the Toyota financing and extended leases for South East region. He made on average back in 2003, $600 for every Toyota that sold in the Southeastern U.S., he made MUCH MUCH MORE on the financing and extended warranties, is what he told me.