Quote:
Originally Posted by Txturbo
Banks can be close....the dealer was only going to save me $8/month on my last purchase. The benefit though is you don't have to deal with all the financing crap at the dealership and it means less time you have to spend at the dealership. If you are ready to buy, you can make the deal and be out the door in 2-3 hours. When I bought my Avalanche I was in, made the deal and was driving off on my way to my free dinner in 2-1/2hours. I applied for my Capital One blank check online, they mailed it to me and when I went to the dealership I had control. It was just like having the cash in your pocket. They treat you way better. You eliminate another way for them to juggle numbers and try to slip something in.
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I'll respectfully disagree with you here. $8 a month over 48 months is $384. That's a cold air intake probably. My last car deal took 1 hour, I got 2.9% interest. I just walk in tell the guy what I'll pay and ask for their best rate. Of the rate isn't good I'd pay cash.
They actually work harder to get you to finance with them as they get some of that financing back on the back end. Even buying motorcycles I was told that the dealer works more with folks who are going to finance with them rather than pay cash.
Paying cash did get you better deals 20 years ago, however that is no longer the case. Now the consumer has to weigh whether it's worth the interest to take the money out of the bank, or if they should pay cash and avoid the interest on the loan. It just all depends on what rate you get on your savings account vs. the loan rate.
Usually it's a better idea financially to split the difference. Pay half in cash and finance the other half if the rate is low and you can afford a 24 or 36 month payment.