Car shopping-cash or financing..

I am going to start new car shopping, I think I am set on a Civic. Do you think you get a better deal if you pay in cash or if you finance? I want the lowest price possible.

TIA

Re: Car shopping-cash or financing..

i financed through my credit union and i know i got the best rate possible.....

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thanks..I actually would rather not finance and just pay in cash, but I think they would drop the final price a little if I finance through them...then I could just pay it all off once the first bill comes?

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Also...do you think there is a chance of a deal if I buy 2 cars from them outright on the same day?

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just do not want a car payment. thanks!

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i hear ya...but i've accepted it as a part of my life....

bills s uck

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It depends on the salesperson. Salespeople usually stay away from cash deals because when you finance, they get commission on the interest rate, even if you pay it after a month.
But, if you don't have to run your credit then don't. It lowers you score.

Also when buying a car, and you aren't that picky with color, go to a dealership last day of the month in the evening. That day they try to pump out a lot of their units and sell cars at negative value bacause the more units they sell in a month, the more incentives, commissions, bonuses the dealership and all personel get.

Never ever pay MSRP. ASk to see invoice. That is what the dealership paid for car. Then try to pay close to invoice. THey mark up MSRP about 2-4000 more.

Hope this helped.

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Don't tell them how you plan on paying it until you agree on a price. I financed my last car, but not through the dealership. when they asked me about it, I said I was going to look at other options and if I couldn't get anything better, I would finance it through them. I got my loan through a credit union, and the interest rate was much lower. when I went back to the dealer, they said there was no way they could match it, so the credit union got the loan.

I am about to buy another car and will probably pay cash for it. I wouldn't finance it unless I had to - why pay interest on it if you don't have to?

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thanks!! I completely agree, I do not want to pay interest at all.

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dealerships don't make much to anything if you don't finance the car... and keeping the contract open for lenght of term.....

my suggestion is, get a low apr 0 - 3 percent...

make sure there is no penlty for paying it off early (which there shoudlnt' be anyway)
and pay it off first month...

i would ask them staright out about a good deal. if they don't talk, then you walk out (then all the sudden they will help you)

this way, they will make a little money and you will get a lower price

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thanks!! That is great advice, I will make sure there is no penalty for paying it off in the first payment.

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I have always been told not to pay cash for a car- the minute you drive it off the lot - you lose value

if you have good credit- you should be able to get under 5%

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thanks, I would hate to pay interest to lose value though. We have great credit, just don't want monthly expenses in the future(I want to be ready for major life changes)

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I'm just playing devils advocate- but they payment would be less then $250 and month- and if you a planning on a major life change- wouldn't you be better off with the money in the bank?

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it loses value regardless

but if buy a car cash- for $10K- then it's worth $8K a month later- your out $2K

if you finace it- you still have your $10K- you have only made 1 or 2 payments
and you invest your $10K or have it for a rainy day

cars are made the same today as they were 20 years ago- they don't last

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but paying intrest for things that you don't need to pay intrest for is bad as well...

it can go both ways...

personally, i would get a sweet financing deal
and pay over a lenght. prehaps get a smaller contract (2 year, etc...) (i assume if you have this much money tucked away, you have great credit and would be offer a sweet deal)

or now that i said that.

I would put a good portion down, then pay of some lenght of time....(which will in turn make a low payment over a short peiord of time)

More down, less intrest

Message edited 2/17/2006 1:25:47 PM.

Re: Car shopping-cash or financing..

thanks for the info. We are going to be in an area where cars are necessary, so we have to purchase cars. I hate the thought of having a car payment. I hate the thought of paying interest, I set aside money each month knowing that we will be purchasing cars. I would like to start a family soon, so I want to make the transisition to a 1 income fam to be smooth.

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My parents and I purchased Toyotas for cash from the same dealer within 2 weeks of one another and yes we got a rather good deal. I got a brand new top of the line carolla for 13,000 and that price included tax, delivery, etc. The retail value of my car was 17,900 plus tax/delivery, etc., so I was rather happy.

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thanks theresa

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Cash is always the best way to buy a car.