Better deal with higher down payment?

[MikeM1968]

I’ll probably be in a position to put ⅓ to ½ the overall price on the JL 2 door I’m thinking about.

I don’t have a wealth of experience buying new cars ( this will only be my second in nearly 12 years)

Should/ can I negotiate a better deal on something considering I have more actual money to put down on it?

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[mde8965]

I’ll probably be in a position to put ⅓ to ½ the overall price on the JL 2 door I’m thinking about.

I don’t have a wealth of experience buying new cars ( this will only be my second in nearly 12 years)

Should/ can I negotiate a better deal on something considering I have more actual money to put down on it?

Dealer is NOT going to give you a better deal on the price of a jeep because you are putting more money down. Dealer does NOT make money based on how much you put down. They want you to finance as much as possible and do it through them... Now, theoretically, you could get a better interest rate on your loan with a higher down payment, or shorter term, or both.

Noticed your location. I live in Florida for the past 35 years, but originally from Sparta NJ...

 

[simpleJL]

Dealer is NOT going to give you a better deal on the price of a jeep because you are putting more money down. Dealer does NOT make money based on how much you put down. They want you to finance as much as possible and do it through them... Now, theoretically, you could get a better interest rate on your loan with a higher down payment, or shorter term, or both.

Noticed your location. I live in Florida for the past 35 years, but originally from Sparta NJ...

THIS ^^^^^

Also - you should consider using Langley Federal Credit Union as they have the lowest 60-month auto loan rates anyone on this group has been able to find thus far.

2% @ 60/months.

You can obviously finance only the amount you'll need to supplement the amount you want to throw in.

But, as @mde8965 stated - throwing down more cash won't make a difference to the dealership. It'll save you some money in financing, however.


Also - If you come into the dealer with financing already taken care of - don't mention it to the saleman until you have locked in a price. They assume you will finance with them, and they get some $$$ from that.

 

[MikeM1968]

THIS ^^^^^

Also - you should consider using Langley Federal Credit Union as they have the lowest 60-month auto loan rates anyone on this group has been able to find thus far.

2% @ 60/months.

You can obviously finance only the amount you'll need to supplement the amount you want to throw in.

But, as @mde8965 stated - throwing down more cash won't make a difference to the dealership. It'll save you some money in financing, however.


Also - If you come into the dealer with financing already taken care of - don't mention it to the saleman until you have locked in a price. They assume you will finance with them, and they get some $$$ from that.

That’s exactly what happened to my wife recently- when she got her 2012 Jeep Liberty used from a beemer dealership in 2014.

she already had the financing approved through a bank - the dealership actually said “we don’t deal with that bank” - so, because she just needed the damned car without the hassle she took their crappy BMW financing. Naturally their APR was ridiculously higher.

A few days after she got the car- she went back and refinanced with the bank that made her the original 2% offer. Her credit is excellent and she’s the homeowner- she bought our house outright with money from the sale of the home she grew up in and raised her kids in in Old Tappan NJ after she and her ex split.

I probably should have or kinda did learn from that experience that the dealership just wants people to finance through their bank.

So unlike buying a home, I guess where cars are concerned- cash isn’t king

Since my credit isn’t the best, I’m definitely NOT getting a 2% rate. It’s another reason I’d rather put down as much as possible. My job of the past 6 years now, issues out some pretty decent bonuses twice a year which would enable me to pay off a loan rather quickly and way ahead of term.

 

[Seansun01]

And if you do finance through the dealer, let them give you their final numbers on the financed deal and then tell them you're going to go to XYZ credit union, where you see the rates are lower. The dealer can almost always drop the rate 1/4 to 1/2% of what they orginially quote. And if they try to sell you the warantees and service plans for rims and lost keys and what not, say no even if you think they look good. They'll come back around with a lower number to see if they can get you on a 2nd try. Don't be afraid to negotiate hard. They know all the numbers and the ways they can give you discounts if they want to make the deal work. Oh, check to see if you qualify for affiliate pricing too (If you or your spouse work for an affiliate company they have incentivized pricing). That will get you at least 1% below Invoice Preferred Pricing (IPP).

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