dirk

does the way you plan on buying your car (cash in full/financing) play any kind of roll in getting a better price from a dealer?

esr5096

Probably depends on the dealer. My dealer didn't ask me if I needed financing until after we agreed on a price, so it wouldn't have made a difference in my case

tsx-mdxman

Generally, you should negotiate price first, then talk about financing.

Nick250

Financing (along with service, parts etc) is one of the profit areas of an automobile dealership. So if you are going to finance or lease through the dealership you are a more desireable customer to them than one who pays cash or finances through an outside source. Consequently if you are a savy consumer you can potentially negotiate a better deal on the sales price of the car when financing through the the dealership. Not always, but sometimes. Of course the interest rate on the loan needs to be factored into the equation.

dirk

thanks everyone for the speedy and intelligent replies

fuque

Sure. If a dealer thinks he's going to get a cut of the profit from your financing, he may give you a better price on the car itself.

Just make sure the interest rate is the same or better, that it's a simple interest loan, has no prepayment penalty, etc.

pcinoc

You work the deal as hard as you can, lowering the total cost of the car, give the dealer his loan - he want the interest money - and since there is no prepayment penalty, you pay the car in full on the first payment! Voila