retired1
Recycles dryer sheets
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+1
Fee for cash buyers???
- Thread starter lauradrops
- Start date
+1
I suppose when you get a price from a car buying service like thru a credit union or Consumer reports, those items are rolled into the "discount" - or is there any chance of telling them you know those are bogus & you need them struck off of the buying service price?
NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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When I bought a new Chevy in January this year, the same thing happened to me at one dealer. I guess he suspected that I was going to pay cash, because I kept pressuring them on the "out-the-door" number. He tried to steer me into a finance deal with a high interest rate, even though my credit score was perfect. I suspected that he got kickback from that bank. When I said I was going to pay cash, he wanted more money, $1500 IIRC.
I got pissed off and went to AutoNation. They were cool with my paying cash, and gave me the same price as the other guy, but without the BS extra fee for cash. Deal!
About the shortage of cars, both new and used, I read that even car rental agencies now go buy used car to restock their fleet, because they could not get new cars. Desperate time!
Badger
Thinks s/he gets paid by the post
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+1
I have done this 4 times now. But first I make an initial payment at the dealership with a CC. They only allowed about $3-4k otherwise I would have made the entire payment by CC for the points. I had to make at least 3 payments on the financing before paying it off. They had some "discount" for financing so I netted about a $1k savings.
Cheers!
seattledan
Dryer sheet wannabe
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Parfumeur
Dryer sheet wannabe
>> 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??
This is very good, BUT what is the rationale for that statement??
CardsFan
Thinks s/he gets paid by the post
I think you quoted me.
The fact is the dealers, at least the one she works for, have very low inventory and are not dealing. I suspect they also only have the "loaded" versions available, though she did not say that.
I bought a Honda Accord at the dealer August 2020. Paid cash. No mark-up for cash. They were surprised that I arrived with a written price from an online company on that specific car. They tried to add $3 grand on. I did not permit them too. ����*
There is an underwriting fee for car loans the dealer generates. They make $$ if you finance through them.
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 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.
I bought a used car from a dealer 6 months ago, then I paid off the loan within a week, I received my title 4 months later, I was just wondering if the dealer made any money on the financing since I paid the loan within a few days and before first payment was due.
pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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.
If that was true, in the case of the dealer that insists on an extra $1,500 for cash, I'd be tempted to say okay I'll take the financing and then pay it off the very next day.
ncbill
Thinks s/he gets paid by the post
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.
I guess that's long enough for the dealer to be able to keep their commission.
pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Yeah... so if I really object to a dealer insisting on a $1,500 fee if I pay cash I can screw with them by agreeing to financing but paying it off right away so they lose their commission, right?
freedomatlast
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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?
jazz4cash
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
No, a fully amortized auto loan does not include front loaded interest. Try any loan calculator. Borrow $35k @3% for 5 yrs the payment is approx $628/mo and the 1st month interest is ~$88. Back in the day they used “sum of the digits” or some other scheme that amounted to a prepayment schedule.
jazz4cash
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Fee for cash buyers? These topics always make me wonder what exactly is cash?
A duffle bag full of currency?
A personal check for the purchase price?
A cashiers check from a bank/credit union?
In our market dealers have generally been keen on credit union financing. I don’t see how the bank/credit union check would not be considered cash. Navy Federal sends a voucher for the maximum your are approved for and you fill in the actual amount. Usually 100% PLUS DMV fees which much higher LTV than a house but it’s
a depreciating asset.
A duffle bag full of currency?
A personal check for the purchase price?
A cashiers check from a bank/credit union?
In our market dealers have generally been keen on credit union financing. I don’t see how the bank/credit union check would not be considered cash. Navy Federal sends a voucher for the maximum your are approved for and you fill in the actual amount. Usually 100% PLUS DMV fees which much higher LTV than a house but it’s
a depreciating asset.
Gearhead Jim
Full time employment: Posting here.
We did the same on our last two cars. In each case the financing deal was fair, but their interest rate was marginally above what I could earn with the money in a CD, so I paid it all off almost immediately.
I subscribe to this youtube channel. father and son team. he has been in the business for 40 years. very educational and entertaining. used the info on their website to help price and negotiate my latest purchase of 2021 honda accord hybrid.
Re the scarcity of new cars, here's a data point of one. Driving past the local GMC/Cadillac/Buick dealer today I was struck at the emptiness of the lot. I've never once seen it like that and have lived here for 19 years. I'd bet they didn't have a dozen new vehicles on the entire lot. Normally it's more like fifty.
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