Here’s Why Dealers HATE Cash Buyers!
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- Опубліковано 10 чер 2024
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Ray is back with his trusty whiteboard to discuss why car dealers HATE cash buyers (or would rather deal with finance buyers, at least)! Remember: cash is king, baby! - Розваги
When I went to go buy my new car I told the dealer I was interested in trading in my old car. I also told them that I was interested in financing through the dealership. I made sure to lock them in on a price that they had to honor. They ended up lowering the price far below invoice because they were assuming that they were going to make money on the financing and on my trade-in so they gave up the profit on the purchase price of the vehicle. I ended up telling them that I changed my mind I wanted to sell my vehicle on my own and I decided to finance through a credit Union and i handed them a check for the cost of the vehicle. Because I already locked in the price there was nothing that could do. The look of shock on the finance managers face was priceless......😂😂😂
i tried that the first time i thought i was going to trick them and they refused to honor the deal.
YMMV.
times are harder now so they might be willing to let you get out for the car price deal you made. I doubt in most states they HAVE to honor your deal as the “deal” was the whole package.
Maybe the laws have changed?
LOL, I've done the same thing. They were NOT happy campers.
Thank you for sharing. Smart you are. I will use this tactic myself!
Pretty sure they weren't locked into anything. If the sale didn't make sense, they wouldn't have sold it. You didn't "gotcha" anyone. Do they like it? Maybe not, particularly the finance person who's going to have a harder time selling additional product but overall, you didn't burn anyone I'm certain.
This literally didn't happen. Lots of dealers now days won't do cash deals anymore.
In summary, tell the dealer you want to finance for 72 months, get them to lower the price, and on payment #1 pay off the full balance. You just saved THOUSANDS.
Provided there’s no early payoff penalty this is actually a good idea
Bingo. Ive been doing this for years.
What is the expected credit score ding with this strat?
@@ScottySwans irrelevant…do this regularly and I have an 820 FICO
@@star9732early payoff penalties barely exist anymore
You guys saved me so much money on my recent purchase! I felt so empowered throughout the entire deal making process. The dealers do NOT want an informed buyer. Thank you.
despite any sharp suits and smiles they are your adversaries as you walk in. you also have no chance of earning any friends on the way out even if you buy. you'll still have to pay, but only by being informed and firm about the deal will it be fair 😎
Yep I am glad I done my homework on so much of this, before when I bought last year, cause it did pay off for me. Admit I was not great at it, and at the end I did make a few mistakes, but nothing major, cause with me in my case, I know for a fact they were not opening up beers or no celebrating and no high fiving and I was not being laughed at and insulted when I pulled out of there that evening. But wish I done a little better, but know I didn't do horrible, but know for sure I saved myself $500.00 for sure where I bought, and I also saved about $5k to $6k more from backing down on another deal, just from watching these videos.
Do to the 2021 Dealership rip-off chip storage forced me to become a cash only buyer. After watching CarEdge formerly know as YAA back in August 2021, I really learned a lot and took my knowledge to a Honda dealership in NJ. I was thinking I was going to get a CRV Special Edition from the Costco program for MRSP which at that time was 28k when I got there I was told I needed Vin and window etching, Lo-jack, paint protection and also an appreciation fee, which added another 8k to the price. Initially I was thinking 32k with tax and tags, and then I get hit with 40k! My response was hell no, and I walked right out and then said I will never deal with Honda again, and ended up saving my money over two years like payment to myself and then Purchased a RAV4 hybrid "all cash" No add-ons, said no to everything, and I have the car today thanks to Ray and Zachs videos. The great part of paying cash is you get the title mailed to you within 2 weeks and no worries about making payments with high interest. But you will need to shop around I had to drive to a dealership 45 minutes away to get what I wanted and not what they wanted to sell me.
Appreciation fee? LOL, very creative on their part. Good job walking out on them! A 45 minute drive is worth it for what you avoided.
shopping for a car right now too, a dealer added "pulse fee 299$" i just stopped responding to his text lmao
Darn right! Cash is the best way to buy a car. It's called delayed gratification. You have to wait and save, but in the end it's worth it. Truly
@@BABA-ws5eo yeah an appreciation fee and it was in the thousands! I was like I am not purchasing some rare muscle car it is just a CRV? They should have paid me for the wasted gas driving from PA to NJ for this dealer nonsense.
Purchased recent vehicle with cash. At close of sale, got HAMMERED for nearly an hour to purchase a $7,000.00 extended warranty plan. We refused.Thank you Lithia Motors - I refuse to purchase a vehicle ever again from any of your dealerships.
I'm amazed you stayed that long and didn't just walk out
Just tell them NO and I don't want to hear another word about it.
Lithia did none of that during my purchase. Boise, ID
@@h2o100c Very glad to hear that! This was in Michigan. The dealership used to be locally owned up until a few years ago.
@@h2o100c Glad to hear that! Our dealership used to locally owned until a few years ago and they used to not do that either. They would offer it, but never the hard sell. This time, they essentially held the paperwork hostage until my husband yelled at the guy that this was enough and we say NO!
From Leo: Been a cash buyer every time since 1989. Pretty hard to manipulate a customer that can afford to walk out on a lying crook. Sell me a car fair and honest or I will find someone who will. I will not pay anyone $900 for a silicon wax job, market adjustment or any other meaningless hang on. The dealership con game has taken any fun out of buying a car. I am ready to mail order the next one.
I am definitely a cash buyer......at this stage of my life! Great analysis! Ray.....Great Job!
Great video, thanks Ray. I guess the irony is that a car buyer really has to negotiate TWO deals with the dealership, one for the purchase price and the second for the financing and add-ons. Just because you shake hands on a (good) price with the car salesman doesn't mean you've cleared the gauntlet yet. You haven't won until you survive and get past the F&I manager who is the dealership's real "cleaner", lol
You are right, This kind of mistreatment is why very few customers come back for another purchase.
I've had an AutoNation F and I dirt bag actually sneak in a bs aftermarket warranty into the deal with deception. To their credit though they eventually removed it.
Your RIGHT‼️
In 2022 no deal.
NO CASH DEAL.
They would not sell to us with ALL CASH deal. No deal. We walked.
we went in to pay cash for a new Subaru in 2020, was offered zero percent interest for sixty months, cost of car did not change so took the 0% keeping the money earning interest for me
Sweet deal
Zero percent interest specials are much rarer now
unless you happen to be late one time and 0 goes out the window
Smart move!
@@greggpurviance7252 Set up auto pay.
Great Info. My 85 year old uncle bought a brand new car with cash and they tried to sell him an extended warranty. He laughed at them. Car dealers suck.
But ur uncle is 85 buying a car. Mf shouldn’t b driving. He’s at the end of his slave life.
just bought a used car for cash from an inheritence i got and love seeing the dealership squirm trying to get me to buy their extended warrenty. best feeling ever is walking in with cash and listening to others negotiate their payment plans
I work Indirect Lending for a large credit union and this guy is absolutely correct. We pay the dealers for the loan. We have people call in days after buying and want to pay off the loan, they wanted to pay cash but the Dealer talked them into getting a loan. It is a bummer for us b/c we already paid out money to the Dealer for the loan. We will still make interest profit on the loan. We also have a Direct dept. that deals with the credit union members directly that want a loan, that dept is not paying anyone to bring loans to us.
Just bought a Toyota SUV for Under Sticker, Paid Cash and Bought Zero Extras. 👍🙏
One reason I've been worried about buying a Toyota is all the horror stories with dealer markups. Glad to hear that it's possible to get a deal!
@@MrPootzen Most of the dealers applying a mark-up are in Cali according to reports. Obviously every state has some but it's easy to find one that does not.
Great video. So never tell them how you plan to pay. Focus on the Out The Door price first, then move onto paying😊
Might be better to constantly say you will take their financing. Knowing they will make a profit there, they sometimes lower the price of the vehicle. Take their terrible financing and then pay it off with your own loan or cash.
I paid cash for a truck 6 months ago and didn't tell them until a few hours before I went to pick it up. They told me at least 5 times don't you want to just keep your cash and use that for somthing else and not put in a depreciating asset. I'll never forget those conversations
I would have been open and polite to the sales person and accepted their finance offer in exchange for a discount (assuming no early payoff penalty).
Lmao. Get a loan that has interest and in the long run digs a deeper hole on the depreciating asset. Backward logic on their part.
I took the 36 month loan from Mazda when I bought my Mazda CX-50 last April because Mazda was offering another $500 off the price to finance. I did mention to the salesperson that I was paying the loan off immediately and that there might be a chargeback to the dealer from Mazda Finance(Toyota). He said "Really, I'll be right back." :). A few minutes later, he said "you are correct, it's $100, how did you know?" I responded, "Caredge, I did my research."
How do you like the CX-50?
Did they go through with the deal anyway?
I wouldn't have told the sales person nothing.
Did they simply add an additional $100 to the final sale price?
@@donaldlee6760 Nope, I went to a no haggle dealer. I'm fortunate to live in an area where there are 3 different dealer groups that sell Mazda, Minneapolis/St Paul.
Makes sense. When I bought my first jeep i did so cash. I didn’t want to be bothered with the nonsense at the dealer and was up front. The sales guy was pretty cool. Neither of us had to go down the non cash route although he initially tried with the BS of giving me a low payment. Got a good deal and that was that. I’m sure every dealer is differmt and not sure how that strategy would go today.
Pay cash - take any finance discounts and immediately turn around and pay that sucker off (assuming no penalties). Screw that dealer - they are your enemy.
Awesome video Ray! Keep up the great work.
Ray thanks keep on teaching
I love the video format Ray! Thanks for your advice! Just signed up for you $10/mo caredge subscription today. Lots of good stuff there! Gonna try to get a Corolla for 24k OTD tomorrow with a loan from my Credit Union.
Six months ago, dealers were refusing my cash offers. Fast forward today, they call me daily!!! F'em all!
I was a cash buyer on my last car. The FNI guy lowered the price $500 if I financed the deal. No add ons and I wrote the payoff check the next day. Try this option the next time you buy. Made $500 for three dollars of interest.
I know coming into the dealership they hate you paying cash. But there is still something very satisfying to coming into a dealership and saying this is what I'm going to pay, here is a check for that amount you can take it or leave it.
The satisfaction and ease of mind for paying for it on day 1 and not haggling about anything is worth a few hundred dollars you might save doing a finance and payoff work around. Dealers appreciate a cash buyer when it’s month end and they have a quota to meet
I care not if they hate me. It's a sale...As my Credit Manager used to say, "A sale is not a sale, until the bill is paid!" Ok, here's the check...the bill is paid...have a nice day! 😂
Ray is giving outstanding information as usual.
Get pre-approved on your credit union and go with the cash to the dealer.
Thank you for the Educating us about the dealers cash refusal ❤🎉❤🎉
Best explanation I've ever heard!
Thank you so much for letting me know how the dealers hate me as I love it!
Would the current state of the car market be an exception for cash buyers? Yes, dealers can't make as much gross off cash buyers as they can with payment buyers, but with so much inventory piling up due to high prices and high interest rates, one would think that cash buyers who can move the metal immediately would be preferable.
A customer that finances a car will take another hour or more of work to verify credit and get the loan in place vs a cash buyer that can be in and out quickly, so YES, if the dealership is swamped with too many customers and not enough sales people then a quick close would help the dealership move more cars per day.
We just bought a car cash yesterday (we didn’t tell them until after we negotiated the out the door price), they didn’t seem to care…
Last time I was at a "dealer" was in 2002. Never have since and never will again.
Super explanation, pops! (Actually we are close in age!) I just like when Zac calls you that!
100% true.
Same drill for RV/camper dealerships that say we will beat anybody's price - IE: Camping World. Price of RV gets you in door. The profit is made in F&I office via their own financing, Good Sam club, extended warranty - service contract, paint fabric protection.
Hi~ just a question, even if I don't need finance, can I use it as a negotiate too to ask dealer offer more discount on the car? And without the early pay-off penalty, I will just pay off all the dept next month. Thanks~
Keep schooling them Ray!
Is the friends and family program worth it?
As somebody that bought a 2023 Camaro with cash, I did buy the extended warranty and ceramic coating. If I was financing that would not happen as the additional cost of financing out way the cost of the add-ons.
There's nothing wrong with buying warranty coverage, the problem is a dealer selling it for 3500 or even 4000 when it should only be 2000
When should you tell the dealer you are paying cash ? at the beginning when you walk in or at the time you settled on a price.
Right on spot
I learned this seven years ago when I wanted to buy a decent newer used car for daily commuting. Car was fresh off a lease with only 24k miles. When I called on the phone I could get it for 9k if I financed through the dealer. When I showed up and decided I’d just buy it out right, the price moved to 10.5k….
So when do you inform the dealer that you're paying cash? After you've arrived in agreement with the OTD price?
Would I get a better out the door pricing when financing? If that’s the case, should I finance the car originally, then, after the deal is done, pay off the car in cash.
I know when the salesman breaks out the 4 square deal sheet, they sent him to charm school.
@caredge have you done a video on the pros and cons of buying a CPO car?
Cassius King joke is hilarious 🤣
please do a similar comparison between lease buyer, that buys out at the residual amount, vs cash buyer.
Well I bought my new 2014 Corvette at MSRP at Shawnee Chevrolet in KC instead of 5-10 thousand over MSRP for the same car in the Seattle area dealerships My extended warranty was 1/2 the price I was living in the Seattle area at that time !!!!!! So I flew into the KC airport picked up my car and drove it home by the southern route which took care of both of my mileage requirements
Why wouldn't they just take the cash and invest that money in a 36 month CD.
The other thing that you have to consider is that with a car that has payments, you also need to figure in the INSURANCE on the car! I remember when I bought my one and only new car, the insurance was close to the payment on the car! Since I had mostly had one or few payments vehicles it was a huge sticker shock for me. Yet when I mention this to others, they brush it off as if it isn't anything to worry about.
I've also found that most people aren't willing to keep a new car until the last payment is made 6 or 7 years later. They want something new. So then they roll the old payment into the new one and are on the hook for even more money. As far as I'm concerned this is craziness. I'd much rather have a larger retirement account or house or many other things that appreciate in value than something that depreciates as soon as it's driven off the lot.
Probably part of my reasoning is that my dad was an auto mechanic and he would buy older used cars, fix them up and either resell them or we got them as our first cars. It's really hard to let go of that mentality when you've lived it for your entire life.
That one vehicle that I bought new was a Toyota and I was planning on keeping it for decades, unfortunately, it got into an argument with a Jeep. Jeep vs RAV, Jeep wins. I cried when I found out that the frame was bent so it was totaled. It only had 90,000 miles on it. The used one I bought had 120,000 miles on it and wasn't in nearly as good of shape as the one I had, but I refused to buy another new one and be in debt with the payment and the high insurance again. I did have to carry a loan but paid it off as quickly as I could. That one I plan on keeping for decades also as Toyotas run for thousands of miles before they give up the ghost..
Cassius Clay. Good one😂
Makes me livid that these shameless crooks actually can sell you a higher interest rate than what the bank offered. I'll be sure to always have my own financing pre-approved before setting foot on the dealer lot.
Not the same in Canada. They do have reserves but the banks offer better deals (usually used car sales)to dealers than if you go to the banks themselves. New car buyers usually use gm financial or Honda credit etc. they have no reserve at all for dealers.
I recently paid cash for a new base Wrangler Willys with manual tranny and crank windows. They dinged me $299 for window etching! It's like Rosana Dana said: "It's always something!"
Thanks Ray, just a question, if the Mfn. is offering say 1.9% for 3 years, do the dealers get anything extra out of it. Just wondering as I could pay cash but have been earning more then the 1.9% on my investments.
When a customer utilizes the special interest rates the lender usually pays the dealer a flat fee for writing the loan, perhaps $150 or so. So yes, the dealer does make a little extra even if you finance at the special rate. All the best, Ray
@@CarEdge Thanks Ray!
I’ve worked in the motor trade in the US and the UK and this is 100% accurate.
In addition to the financial side of the equation, the cash buyer is treated like a moron for not participating in the dealer’s games.
I’m trying to buy a car right now and I’m confined to the private sector because I don’t want to get my time in the box, face the F&I guy or pay their outrageous blue sky fees, the most heinous of which is the nonsensical ‘doc’ fee.
If a dealer doesn’t want my cash I guarantee I can find one that does!
When I bought my car and when I go with friends/ family to buy cars I always have them write checks for the extended warranty or other add-ons. Don't finance the extras OR the TAXES. Pay that off in CASH.
Can I ask why? What if the extended warranty and the add-one are within your budget for the car?
I think this is overstated, maybe for the drama or clickbait effect. Dealers should not **HATE*** any customers. A cash buyer STILL provides more profit than a potential customer who walks out of the dealership. A cash buyer provides more profit than one who never even shows up at the dealership too! Sure, I can see why dealers might PREFER a non-cash finance buyer, but HATE?! Come on! PLUS... A happy CASH buyer who was not "handled" by a sales manager & F&I person might be more likely to RECOMMEND the dealer to a friend or family member... providing MORE profit to the dealer. So... if you're a dealer & you HATE cash buyers as Ray says, you are not maximizing your business, & you're basically looking at it all wrong.
if the OTD price is the same but I can get a lower dealer arranged or manufacturer financing than the loan rate for the draft check from my bank I have in my back pocket with the same terms, I'm not gonna care if the dealer makes an indirect lending kickback.
I talked to my local dealer where I get my Hyundai fixed about a new car, and they said MSRP price for cash buyers, no deals, they said it up front went I asked to look at a car.
Just walk in with a pre-approved loan from somewhere else, and you're instantly a cash buyer. A side benefit is that the dealer will want to compete with your lender and you may get even better terms.
*The BIG BOARD is out ???* 👀
We gon' learn something TODAY.
Ray, why not get best price out the door and negotiate the interest rate take it out for as long as you can go one or two days go to the bank and pay cash. You got the best price for the car and you pay cash for it.
Some dealers will offer another price cut if you finance through them for 1 year.
They dont like you having your own financing and not doing it through them either.
Just went through this purchasing my 2024 Honda. If I hadn’t been a 30yr customer of this dealership I honestly believe they wouldn’t have want to sell me a vehicle in a cash deal.
Are there usually pay off clauses?
it’s a sign they are maybe not a place you want to do business if they have payoff terms. If you have bad credit you may have to use that sort of dealer, but they are supposed to tell you if they don’t allow early payoff and what the ‘terms’ to payoff early are so you can decide if you want to make that sort of loan
This only applies if you use the dealer’s lending facility.
Agreed. I’m not sure why he didn’t point that out.
Ray got a Whiteboard and went full "Marko."
Can you touch on something for me, I want to have a truck built from the manufacturer a certain color, trim, and a certain package only. I was told that the financing would be done online before the truck was ordered, with a $500 deposit.
Then they're gonna hate me on my next auto purchase here soon.
this is why the dealer franchise laws are anti consumer and dealers are big chains not the local guy who used to be your neighbor. they bought the legislatures throught dealer assn like nada it just about the only consumer item you cannot buy online from the factory
If you’re going to finance can’t you just finance directly with a bank? Wouldn’t you be considered a cash buyer from the dealer’s perspective?
They also hate you bringing your own financing.
I would say even more so.
Great presentation... seems like companies like Subaru who do 5yr/0% (and this was years ago) are making the finance=cash. Is this some kind of hidden trick?
It is smoke and mirrors. Often dealers with 0% have manufacturer programs that are and either or 0% for 60 or $2000 instant rebate for an example, what happens is that $2000 is absorbed by the dealer for cost of interest. When you do the calculation it used to come out near the same with higher rates not probably not as much. But here is the problem with taking 0% programs, you are going to have a higher purchase price the only way it works out is plan to have the car for the whole 60 months, do not prepay the loan because you will whatever interest incentives, problems with my repeat customers is the took the 0% for 72 months they put a few thousand down with in 18 months they come back and want to upgrade so they come in underwater on their car loan lost their down payment money from their last purchase, usually for my cash buyers they will take the financing to get the lowest price and pay off the loan or refinance within a month or so. Now the dealerships hate that because they get charged back all that projected sell rate profit for the finance deal because the customer essentially cancelled that contract. So back to your question 0% programs you are still paying for the interest you just don't see it as the manufacturer has already built that into the cost.
It used to be a choice between getting "cash back" or paying 0% financing. The latter was usually the worse deal. I am surprised Subaru would not give a lower price if you did not take the 0%
@@ronj9124 zero % financing helped in the fact that I got the car for my daughter and she had a low(ish) payment for 5yr on a very reliable car. I did my due diligence and got, what I felt was the best OTD price before talking financing. You could be right about having more off the front end with the cash back. Just wondering if there was a trick behind 0% based on the videos.
Hello Zack and friends, I'm seeking your advice. I'm torn between opting for a 2019 used Mercedes-Benz G Wagon with 100,000 miles on it or going for one with 20,000 miles. Does the mileage significantly affect G Wagons? I adore this car model but buying it new isn't an option for me!
DO NOT buy a Mercedes with 100K miles on it! Things will start breaking very soon and they cost a FORTUNE to fix on those cars. If you really have to have one, just lease it.
@@morebeer7673 Thank you so much for your candid take on it!
@@morebeer7673 i wouldn't make such a blanket statement. I bought an old diesel with over 100k, and it wasn't a fortune to maintain. G-Wagon on the other hand...
@@ReiNa-yu8eb if you haven't owned one, I don't know how you can ascertain you adore it other than you like the looks and a bunch of rich celebrities own them. i'd rent one with full insurance and drive the heck out of it to see if you actually adore it. Depending on gas prices, I'm not sure you will adore it after a few fill ups. i drove the heck out of one for five years on mostly backcountry, and although I found it reliable, I wouldn't personally have owned it if work wasn't flipping the bill for it. Forget whatever perceived cool factor nonsense you may have about G Wagon and get a Toyota Land Cruiser if you want a big SUV. After all, if it's good enough for terrorists around the world in every condition imaginable, it surely is good enough for the pavements of the USA.
@@ReiNa-yu8ebG wagons are overpriced junk, just stick with your Kia.
Make sure there's No Penalty for Early Payoff
Question: a friend of mine wanted to pay off the loan right away (from a sale made three days ago) but the dealer claimed the loan was with the bank and he would have to wait for the paperwork. His contract was with the dealer, though. Should he be able to pay the dealer the rest of the balance directly instead of waiting an indefinite time for the paperwork to be done?
He has to pay the bank. The dealership didn't lend him the money the bank did. The dealership helped him find a bank to write the loan, it is known as indirect lending. It might take a couple of weeks for the bank to set the loan up in their system and once it is in the system he can then pay it off. All the best, Ray
How does the dealership profit from the financing, then?
The bank either pays a flat fee for the dealer sending them the loan or the dealership marks up the interest rate that the bank gave to the dealership. There is the buy rate, what the bank charges the dealer and the sell rate, what the dealer charges the customer and the dealership gets a % of the extra interest that the customer is charged.
@@CarEdge are there buy-here pay-here dealers anymore? I thought there were.
Wouldn't the same $1,000 extended warranty margin apply to cash and finance deals equally? Then it would be $3000 dealer margin for financing customer v. $2000 cash customer.
Nope, do the math. If your paying cash for the extended warranty then Yes.
@@h2o100c but aren't you still paying the sabe amount for the warranty either cash or financing? It would cost more financing as a matter of fact because you're paying interest on that warranty.
Great explanation of why it pays tp be a cash buyer.
What’s tp?
Toilet Paper😂
Is it still a bad time to buy a new car?
It’s always a bad time to buy a new car (i.e., not used)
Give it another month if you really need a new car
So, bargain as if a payment customer & end up handing the F&I agent a check
Not sure you’d want to pay cash anyway. 2.9% for 60mo vs that cash in the market making 6-10%
because most people don't have enough savings to abritrage
So would it better if I finance the car and pay it off within 3 month?
Only if there is no penalty for doing so
I bought 4 cars for cash. Kinda must make deals where I can. I don't like payments either, but I do what I must do.
We can use credit card to buy the car in full. That would be the same as cash deal right?
Not really. Dealers will charge a fee for using a credit card, at least for charging more than a couple of thousand dollars.
i bought used car with amex card once but that was a long time ago. i doubt that would work today as fees are so high.
@@_xyzyz_ why is there a fee? My limit is high and I’m planning to pay it off within the week?
@@ronj9124 oh wow. So better to finance and then pay it off within the month to avoid interest?
Merchants have to pay a fee on all CC transactions so I don’t see the dealership accepting such terms unless you’re overpaying for the vehicle.
Whats the BEST suv to buy right now for 30k. Taking all answers please.
A SUV leased, that reached the 3 year or 5 year lease. Miles are usually low, and regular oil changes etc are done like clockwork.
I bought a 2015, leased in 2016 Nissan Pathfinder, after leased for 3 years. Bought 2019 , 7.5k miles a year and regular 3 month oil changes. Car was mint condition. Paid cash and told dealer not paying any BS extras. Just hit 65k miles on it. Runs like a champ. First week i had it freeway rock chip on windshield. Someone dinged bumper in supermarket parking lot. Golfball dinged door . Buying new not worth it.
Probably lots of repos hitting lots these days. Stay away from rental car fleets. They get abused.
Now is a bad time to buy, so none
Wish I can find a good non shyster dealer in the Sacramento area that would take cash.
going shopping pretty soon, thanks for the reminder! guess what folks, I have the cash but I'll lead with a polite 15%ish down. I'll then negotiate a nice OTD price, accepting a higher interest rate as needed, but making sure there is no early payoff penalty. in a month or two I'll pay off the loan in full. do you think there are any holes in my strategy? 😎
done that a couple of times - even better is get a loan proposal from your credit union and use that to get better finance terms so that first months interest before payoff is reduced.
@@_xyzyz_ yes, got credit union ready. I'll do that if I can. the model I want will be closer to 10 years old. the credit union requires it must be no more than 7 years old. wish me luck! 🍀
I'm guessing this isn't as true of buying a 'pre-owned' vehicle. Correct?
Same principal. Either you'll pay cash or finance it, whether it's new or used.
The best thing to do is just go ahead and finance with them, and then turn around and pay the full amount with no finance charges. You get the better deal and never have to tell them you’re paying cash.
We don’t care what the dealer wants or likes. I have done a few cash deals and it went very smooth.
I absolutely hate dealers pushing the payment and not the price. Walked straight out when some moron was talking payment. WTF - the Cost is what matters.
If I were to be a cash buyer do I keep that a secret until I talk with the F&I person? Pros and cons of 60/70 month lease with intention (and ability) to pay the car off immediately ?
This is me right now. I have $35K i want to pay in full for a 2024 prius but i need some more advice as well. Do i do the 72 month thing and pay it off in 1 month or is there an issue with me paying the 35K there and then at the dealership
@@angelenriquez2987I would love to know this answer as well.
@@angelenriquez2987 you go in there "ignorant" as to what they're up to, play up the "whoa is me, thats too much, gimme best deal, better payments, longer time, whatever..." mostly looking to lower the actual financed number. then go home and pay it off, easy peasy. DONT MENTION ANY OF THIS TO THE DEALER. let them think this is any old regular car deal.
@@nitrosrt4 so i need to just try and get a lower offer on the car and not pay it in full. Go home and pay it in full is what you’re saying
Just save time and be honest upfront. Know ahead of time the fair price of the vehicle you’re considering and keep heading towards the door until they come to the price you want. Be willing to leave if don’t get what you want. Don’t mess around filling out applications for credit.
Hey, I'm looking at buying a 2024 Honda Civic Hatchback Sport Touring, fully loaded! ($33,000) Honda is offer several finance options, 36 to 48 mos. for 3.9% & 49 to 60 mos. for 4.9%. I'm leaning towards the 3.9 for 48 mos. with a monthly payment of $450.69 financing $20,000, only reason I'm would be financing is my online savings accounts are making 4.3% & 4.45% a month & all my CD's are above 5%, have 2 big ones coming due middle of May to be renewed! My total interest paid for the loan would be $1633.12 for 48 mos. My ? is how does my Honda dealer make any $ financing the car if it's financed though Honda, does Honda give them a percentage of the interest made? O, my credit score is above 800 & their is NO add stickers at this dealership and they gave me $1500 off the MSRP sticker plus a good deal on my trade! This is one of the good dealers, another Honda dealer across town wanted $3000 more for the same identical deal, they had a $1999 add on sticker, only took $500 off MSRP & offered me a 1/3 less for my trade!
because of taxes, depending on your state your savings need to be earning above 5% APY to break even compared to 3.9% APR car loan, so why would you borrow if you have the cash? Your savings accounts are not earning 4.3% and 4.45% a month and your CDs are not earning 5% a month, those are annualized thus Annual Percentage Yield (APY). Your average savings APY is 4.45%, which is far below what you need to break even compared to 3.9% car loan.
I'm retired early at 55 & I'm below the $13,850 Federal deduction in interest made so I didn't have to pay any taxes for 2023.@@hanwagu9967 Might have to pay a little tax for 2024 since I started getting a monthly retirement check plus I may withdraw some $ out of the 401k plan bc I lose $ every time the stock market goes down unless I wait till 59 & 1/2.
This video could have been half the time. Basically, payment buyers (who don't understand the time value of money) are much more likely to pay too much for a car and all kinds of dealer add-ons folded into a payment at an extended length loan. Buyer should know (or bring someone who does) how to calculate payment from net present value (NPV) and interest rate.
That’s why you refinance as soon as you can
I'm fine with driving clunkers. Bought one new car in my life never again.
I buy new and keep the car at least 15 years. In the last 50 years I have only bought 3 cars.
@@josephkelleher8820because he/she/it is a loser looking for a handout…. (Insert screen name here)
My last car purchase they asked how many months to you want? I said it doesn't matter, I used their bank after I got a better rate from their lender. I had secured my own and used it as a bargaining chip for a better rate from them. After the financing paperwork came in I used the money from the private sale of my car, ($4500 more than their trade in offer) $19K and money I had saved towards the new car ($6K) and made a payment of $23K on the $32K car the day the loan was processed. Eight months later the car was paid off.
The dealer was begging for our trade in and kept asking for a down payment, I refused to give in.
Dealerships are evil people who prey on the uninformed and people who have to finance.