Paying cash

VICSRUBI

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So I'll be ordering another rubi in September and be paying cash. My question is would the dealers still be willing to give the bigger discounts on the price if you don't finance with them





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Andrew05LJR

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So I'll be ordering another rubi in September and be paying cash. My question is would the dealers still be willing to give the bigger discounts on the price if you don't finance with them
Just negotiate like you are and then drop the cash
 

Kyanche

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I think most of the time it won't make a difference, unless you have bad credit and nobody offers you a loan outside a dealership. If you have good credit, then you'll be able to walk in with a preaproval letter that the dealer would have to try and beat with their own financing, instead of trying to profit with a marked up rate.

I don't know how common it is, but if you pay by check, some dealers will make you do one of two things:
1. Wait to pick up the jeep until the check clears (perhaps money orders/cashier's checks skip this?)
2. Apply for an option loan from them that gets canceled when the check clears.

Even if they got a kickback from selling you financing, I'm not sure it'd be a night-and-day difference anyway. Maybe 2-300 bucks? From what I've seen, it seems that the only way you get beyond 3% is if a dealer is hedging bets on a volume sales bonus or only a few sales short of said bonus or something.
 

Therby

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In the past i got a better deal doing there financing through the dealer(they make money on financing) then once the loan is there, go pay it off right away. Assuming its an open loan
 

goingsolo2

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You don't tell them you're paying cash until AFTER you have negotiated the price. It's as simple as that. There are many different "fees" dealerships can tack on in places you'll never see, including the financing. Always negotiate price first, then when it comes time to pay, you offer the cash.
 

cosine

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in the earlier years cash was the king. hard cash dealing and you walk out with a deal. today that kinda faded away. i tried a cash deal with my jl and was counted offered with a better deal by fiance and drove out that same day. i plan on paying it off in 6 months (no penalty). if you look at the break down on a cash deal and fiance deal, it breaks even in one way or another..
 

Midding

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Better deal financing in my case, paid the balance off after first payment. Had to go through several finance companies to find one that wouldn’t charge for early payment.
 
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VICSRUBI

VICSRUBI

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Thanks for the help guys. Seems like I just have to see which is the best route when it comes down to it.
 

Chocolate Thunder

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Financing typically offers a better sale price because they make more money on the interest from financing than the sale price itself.

As was stated, negotiate price independently from the discussion of how you intend to pay or trade ins. Then pay cash if you want after you’ve settled on a firm price.
 

Andy2434

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I received 6% below dealer invoice on my ordered JLUR. I was planning on paying cash, initially. I received an additional $500.00 discount if I financed a small amount. As such, I financed $10,000.00. After 3 monthly payments, I paid off the balance with no penalties.
 

lonz

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Yep, as mentioned above, dealers make money if you finance through them. Dealers get what's known as a "reserve" from the bank. The bank will only give the dealer the "reserve" if the car buyer maintains the loan for at least 3 months. However, it's important to note that in most cases, there's no prepayment penalty. So, if you pay off the loan right away, the dealer would not get the reserve, and would be pretty much screwed out of that additional revenue.
 

RichD

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I received 6% below dealer invoice on my ordered JLUR. I was planning on paying cash, initially. I received an additional $500.00 discount if I financed a small amount. As such, I financed $10,000.00. After 3 monthly payments, I paid off the balance with no penalties.
But most car loans are front loaded with interest. For those 3 months you're paying nearly all interest, little principal. Balance this against the discount to see if it makes sense.
 

Sherifftruman

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Always separate the financing from the purchase. We didn’t see any difference in pricing when we paid for ours a couple months ago.
 

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