| If I am paying cash for my new car, how much of a discount should I expect? |
|
Paying cash for a new car can actually be a disadvantage - and you may end up paying more for your new car than if you chose to finance it through the dealership. That's because dealerships often make more profit from the financing of the vehicle than from the actual sale of the vehicle itself. So if you take away their financing profit, then they'll want to make it up by selling the vehicle at a higher price. Here is the best strategy for buying a new car with cash: Don't tell them that you want to pay cash until all the paperwork is done; actually even agree on high interest rate. Dealer will be happy that you are financing and will be counting the profit that they make on the finance charge. Come next day and pay off the car. Come in the morning, before they send your contract to the bank, right when they open the dealership and bring the check. They have to take it. |
