Buying a car

[En Passant]

Is there a benefit for the seller (let's say a used car dealership) if I wrote them a check to pay off the car that day, rather than financing it?

Would I get a better price on the car if I told them I would be paying for it today.

[guids]

from a dealership, not really, they want you to finance, from a private party like out of the newspaper classifieds, yes.

[spex x]

It depends on if the dealership finances in house or not. If they carry their own paper, the highly prefer a CASH sale. But a lot of dealerships have relationships with lenders and can approve you for the loan right at the shop. Those guys are getting cash anyway, so they don't really care if you finance or not.

[Badger]

[ QUOTE ]
from a dealership, not really, they want you to finance, from a private party like out of the newspaper classifieds, yes.

[/ QUOTE ]
Even then, these private parties aren't goign to finance you. They're still getting a check, but maybe instead of from you it's from a bank.

From a seller perspective checks are better than credit cards. It seems to me if a seller would prefer a check to a loan they're not doing a good job of how they loan money.

[kimchi]

Not sure about in the US, but some dealers in the UK used to offer a discount on the windscreen price if you took their finance.

Some car dealerships (and GM at one point, I believe) make far more money from financing sales than they do from the sales themselves. They're basically loan companies with a car dealership bolted on.

[guids]

[ QUOTE ]
[ QUOTE ]
from a dealership, not really, they want you to finance, from a private party like out of the newspaper classifieds, yes.

[/ QUOTE ]
Even then, these private parties aren't goign to finance you. They're still getting a check, but maybe instead of from you it's from a bank.

From a seller perspective checks are better than credit cards. It seems to me if a seller would prefer a check to a loan they're not doing a good job of how they loan money.

[/ QUOTE ]

ya, true, I come from the school of cash though. if you are looking to buy a car, and come in with cold hard cash, it goes a long way in bargaining, ecspecially with classic cars.

[Jimbo]

A 750+ FICO is better than having cold hard cash anyday.

Jimbo

[spex x]

Why dont' you just ask the dealer what they prefer? Tell them you can either pay cash of finance and give them the choice. Then, say they pick cash, you say, "oh man, I was hoping you'd say financing. what kind of discount can you give me if I pay cash then?"

If they say financing, you say, "jeez, I'd hate to pay interest if I have cash. what kind of discount can you give me if I finance with you guys?"

I dunno if that strategy will get you anywhere. Most importantly, keep asking for discounts. When it comes to car salesman, the price is never right. I dont' believe in win/win negotiations with anyone in the auto industry. I believe in [censored] you negotiations.