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View Full Version : Paying Cash...vs...financing New Truck!!??



FRENCHIE
02-15-2005, 03:20 PM
Anyone have any input on breaks if any on paying cash vs financing an 05' F250 crew cab diesel!!?? Should one expect a better deal?? hundreds off price, thousands?? or anything?? thanx for the input!! :confused:

djunkie
02-15-2005, 03:25 PM
Why pay cash if you can get a very low if not 0% financing. Leave the money in the bank where you can make money on it. Even though the interest banks are paying is low.

FRENCHIE
02-15-2005, 03:35 PM
They of course make money on your financing if you go with them. I usually will wait until the end of the month and then hit em up...usually get a better deal so they can make theri numbers for the month.
that is true in my sales too we wanna make #s at end of the month!!
;)

FRENCHIE
02-15-2005, 03:36 PM
Why pay cash if you can get a very low if not 0% financing. Leave the money in the bank where you can make money on it. Even though the interest banks are paying is low.
of course this is the wise thing to do!! however it is not the answer to my question at hand....i would just like to know, if there is a difference!! thanx anyway!
:idea: :cool:

OutCole'd
02-15-2005, 03:37 PM
You would get a better deal to finance it as far as price. Most dealers make more off the back end (financing, ext warr, etc) than off the sale of the vehicle.
I would go with a 0% if it is available & spend the money on boat stereo equipment instead. :D

FRENCHIE
02-15-2005, 03:49 PM
You would get a better deal to finance it as far as price. Most dealers make more off the back end (financing, ext warr, etc) than off the sale of the vehicle.
I would go with a 0% if it is available & spend the money on boat stereo equipment instead. :D
id rather get a nice rebate like 5k or a such, and go through my credit union as i can get 4.25 with them!! but still would like to know more opinions on cash!!!
:confused: ;)

OutCole'd
02-15-2005, 03:57 PM
id rather get a nice rebate like 5k or a such, and go through my credit union as i can get 4.25 with them!! but still would like to know more opinions on cash!!!
:confused: ;)
Cash is worthless to the dealer, they would rather have you finance it, they would make more that way. Whether you pay cah, or they sell the loan to a bank, either way, they get paid within a week. But if you finance, they get a kick back from the finance company, keep your cash.
When I bought my last truck, I could get either 1.9 from GM and no rebate, or 4.9 from Chase & a $2,500 rebate. After doing the math, it was about $2.00 per month to go with the rebate as additional down payment, & pay the higher interest.

Music to my Ears
02-15-2005, 04:49 PM
How about financing it up front to get the better price from the dealer, and then just pay it off? :rollside:

cc322
02-15-2005, 06:55 PM
I would say If you have the cash at hand do it, but if not the dealer still gets the cash from the finance company so I would think it is cash to the dealer either way. As far as waiting for the end of the month I'm not to sure If I buy that theroy, I have heard it but a hungry dealer would rather make a sale no matter if It's the first middle or end of the month. I just bought my truck and went to the dealer on the last day of the year 12/31/04, couldn't close the deal went back one week later and closed the deal, so I guess it depends on the dealer and the sales mgr. I would do all your leg work on the internet and then go to close the deal. Good Luck

Just Tool'n
02-15-2005, 10:51 PM
Here is what I have been doing for about 10 years.
I take the money out of the bank, & go buy what I want.
Then i go into Quicken set up a loan for the truck or car I want.
Set it up for either 4 or 5 years, then I set the intrest rate at 8 or 10%.
Then every month i go in & make a payment to myself into my savings account that I took the money out of.
This way I pay myself a heck of alot more intrest than what the banks are paying on regular savings account, especially over the last 3-4 years.

PHX ATC
02-16-2005, 06:16 AM
Get your best deal, finance it through them, when you get the first bill, pay it off. Simple, really...you feel good, the dealer thinks they've made more money off of you and you've screwed them in the end.

TOBTEK
02-16-2005, 07:35 AM
DAMN finance guys at car dealers........ :D

OutCole'd
02-16-2005, 08:04 AM
DAMN finance guys at car dealers........ :D
Never trust them guys.

HighRoller
02-19-2005, 02:57 PM
Tool'n has the right idea I think. Sure, you can get a low interest rate but why have a car payment if you don't have to? You'd have to be nuts IMO to finance anything if you have the resources to pay cash. Your biggest wealth building asset is your income so why bog it down with a bunch of payments?

jbtrailerjim
02-19-2005, 06:18 PM
If you can get almost or zero % financing, I think it's crazy to tie up your money in a vehicle. Especially if you can afford the payments.
Cash does not mean crap to a dealer unless you have terrible credit and they can't get financing for you. They get there money no matter what, whether you are paying cash or financing.

FRENCHIE
02-20-2005, 01:17 PM
thanx for the 411 guys!!!

INSman
02-20-2005, 04:22 PM
Get your best deal, finance it through them, when you get the first bill, pay it off. Simple, really...you feel good, the dealer thinks they've made more money off of you and you've screwed them in the end.
Yeah, they probably get a "Charge-Back" in that deal !!!

COELIMINATOR
02-21-2005, 11:15 AM
Most times dealers will give only one or the other. Rebate or 0%financing. If you can get 0% financing AND the 4-5k rebate, that is obviously the way to go(I have never seen it although some say they have done it). In that case, finance it and leave YOUR cash liquid to WORK for you. If you can not get the 0% financing along with the rebate, then taking a rebate of say 4-5k is a good chunk of change. Hard to make up that coin in todays market(money markets etc). Especially when you look at the interest payed on the loan. I know some on the board may disagree, but this is my 02.
Just Tool'n really does have the best scenario, if one can abide by it and be diligent enough to adhere to it.
Sam

Cole Trickle
02-21-2005, 03:29 PM
Take the rebate over the 0% if your not going to keep the vehicle for the entire life of the loan.
That 0% for 2-3 years won't equal what some of the rebates are right now.
I always make the deal and then tell them I am going with my own finnancing.
2005 Ford and Chevy's are selling at invoice if you look hard enough.
Brandin

skygod73
03-22-2005, 04:47 PM
Frenchie,
If you have not bought your truck already, I have a connection at Sunrise in fontana for $500 below invoice + rebate/or financing. Also, join the AQHA 1 month before buying and get an additional $500 rebate.

77charger
03-22-2005, 05:23 PM
just a thought but aint say 40k cash the same as 40 in a finance check to the dealer??to them they get the 40k no matter what(using 40 as an example i dont know what you are planning to pay)
IMO take the rebate or 0 percent financing.