retired1
Recycles dryer sheets
- Joined
- Jun 10, 2011
- Messages
- 297
I take their financing option then immediately pay it off (after confirming that's an option without penalties).
+1
I take their financing option then immediately pay it off (after confirming that's an option without penalties).
Did they exclude the destination charges or dealer paperwork fee?
If you are paying those then that dealer is scamming you. If you are buying a used car, or they offer xx months free maintainence, just leave. No need to waste time dealing with liars.
I went car shopping at some local Honda dealers looking for a new or CPO car. I did most of it online so I could cut down time at the dealership. Went to see one in person and was told if I pay cash they would charge $1500 more.
Is this a thing? I never heard of such a thing...
+1I take their financing option then immediately pay it off (after confirming that's an option without penalties).
Yes, it's thing. There are YouTube videos on 'how to negotiate for a car'. https://tinyurl.com/y6oa2l5o The usual advice is to not disclose that you're paying in cash until you're in the Finance office.
>> She said DO NOT buy a new car right now unless you absolutely need to.
This is very good, BUT what is the rationale for that statement??
I take their financing option then immediately pay it off (after confirming that's an option without penalties).
The dealers make money doing auto loans. That's why they don't want you to pay in cash. But you can get your best deal with a loan, and then pay off the loan as soon as you want to. You can also refinance the loan, if you find a better rate at a bank or credit union. There is usually no charge to refinance an auto loan.
Yes, I am aware of that, but if you buy and finance the car, then pay off the loan immediately then the financing company still pays the dealer their cut or not.
I always thought that the reason the dealer asks you to wait was because if the loan pays off right away then the lender can claw-back part of the origination fee that the lender paid to the dealer.I used to do auto loans. When people were getting a manufacturer rebate, along with their loan, we would tell them to wait six months, just to be safe. I'm not certain if that applies when you are getting the loan only. It seems like it would be best to at least wait a couple of months. I doubt it would matter after that.
IIRC from online posts people say their dealers requested they make 2 or 3 monthly payments before paying off the loan..
I guess that's long enough for the dealer to be able to keep their commission.
My understanding of loan amortization is that the first 3 monthly payments of a loan are predominantly interest and very little principal. Regardless of the interest rate. So, are you simply adding to the purchase price of the vehicle?Yes, that was what it was in our case. The dealer asked us if we would wait three months to pay it off so they could keep their full commission. At a 0.99% interest rate, we agreed.
My understanding of loan amortization is that the first 3 monthly payments of a loan are predominantly interest and very little principal. Regardless of the interest rate. So, are you simply adding to the purchase price of the vehicle?
I take their financing option then immediately pay it off (after confirming that's an option without penalties).
Try searching news for "Wait to buy a car".
Here's the first link that came up for me: https://lifehacker.com/why-its-a-terrible-time-to-buy-a-car-and-how-long-you-1846985137
And there is this on YouTube: Here's Why Now is the WORST TIME in HISTORY to Buy a Car