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Old 12-09-2015, 11:37 AM   #41
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A number of years ago (decades) it seemed to be the common thought that paying cash would get you the best deal and a better negotiating stance. From what I have heard recently (no proof) is that car dealers get a little kick back from financing a car. If the financing is 1.9% the dealer gets .3% of that and they make a little more in back end money. So you might even be able to negotiate a better deal by saying you will finance and then pay it off a few months later if you desire.
I have noticed that the dealers will TELL you if you can get a better deal through financing.... have bought 3 cars in the last 6 years and was told when it mattered... and when I was not told I asked and they said it did not matter.... small sample, but interesting....
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Old 12-10-2015, 09:48 AM   #42
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As a follow-up, while I was leaning against the loan I ultimately decided to do it. I'll schedule the payments on auto-pay like our mortgage payments so it should be relatively painless.

I happened to be near the dealership this morning after meeting some friends for breakfast and our new car was on the lot... came in yesterday. About 10 seconds after I saw it there DW called me on my cell to let me know that the sales person had called to say it was in.

I went in and completed the credit application. It'll be interesting to see if our application is accepted as our income is only taxable account dividends and Roth conversions (which I described as my "pension"). I'll know later today. If it is an issue then I'll just pay cash.
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Old 12-10-2015, 07:33 PM   #43
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Just had a call from the dealership where I bought my car 3+ years ago, offering me 0% financing on a new one. I said no thank you.
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Old 12-10-2015, 08:17 PM   #44
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Something to consider;
Say you total that new car. You will need to TRY and collect from the insurance company if you own that car out-right. (Good luck)

On the other hand, if you have a loan on that car, then the lien is with the bank and the bank is paid by the insurance company, and I don't think a bank is going to have issues with collection on the policy compared to you as an individual owning the car.

I just think the risk to collect on the insurance is going to be more difficult for the cash buyer than it would be for the bank with the lien.
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Old 12-10-2015, 08:27 PM   #45
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Something to consider;
Say you total that new car. You will need to TRY and collect from the insurance company if you own that car out-right. (Good luck)

On the other hand, if you have a loan on that car, then the lien is with the bank and the bank is paid by the insurance company, and I don't think a bank is going to have issues with collection on the policy compared to you as an individual owning the car.

I just think the risk to collect on the insurance is going to be more difficult for the cash buyer than it would be for the bank with the lien.
I have never had any problem collecting from an insurance company...

If someone hits me, I get it fixed and they pay for it... if it is my fault, I also get it fixed and my insurance pays...

The only problem I did have was when I totaled out the car I really liked... they valued it about $1500 less than I did... it was low miles and in excellent condition, but they only look at comps and then took a discount... I could have sued, but just took the check which they gave me the same day we came to an agreement....


Edit to add.... the lien holder has NEVER gotten involved with any claim I have ever had... never, ever....
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Old 12-11-2015, 12:38 AM   #46
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Huh, I never thought of putting loan payments or health insurance premiums on CC to get my 2%.. interesting idea.. I'll have to check that angle out.

Yep, I'm finally starting to put more and more things on our Fido amex card just to get that 2%. (Just yesterday I put ~2.3k of medical and dental OOP's on the card and it felt quite foreign as I'd always written a check before that.) And regarding your original post, I financed a new car about a year ago at 0.9 after confirming no incentive for paying cash and immediately set my payments up on auto-pay. But this thread now has me thinking I should bring the cc into play for that as well. Now if I could just use it for mortgage pmts or property taxes I'd be set!
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Old 12-11-2015, 12:51 AM   #47
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Something to consider; Say you total that new car.

Good thing I read further. For a moment I thought we were being spammed with a Liberty Mutual ad. Or perhaps I just watch a little too much antenna tv. ;-D
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Old 12-11-2015, 05:53 AM   #48
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I did pay $5000 of a car purchase with a credit card a few years ago.
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Cash or loan
Old 12-12-2015, 02:45 PM   #49
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Cash or loan

I also have PenFed loan at 1.49%, it's hard to pass it up, but I might pay it off soon, now that I'm retired.


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Old 12-13-2015, 10:57 PM   #50
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So at what point do folks think a loan is too much ?
For example how about refinancing the home for couple of hundred thousand at 2.75% for 15 years.

I will be considering the car buying option next time, as last time I just paid cash.
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Old 12-13-2015, 11:21 PM   #51
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So at what point do folks think a loan is too much ?
For example how about refinancing the home for couple of hundred thousand at 2.75% for 15 years.

I will be considering the car buying option next time, as last time I just paid cash.

If there were no fees, I would do it in a heartbeat....

BTW, house barely worth more than 200K... so would love the extra money...
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