Thursday, January 12, 2012

I have enough cash to buy a used car straight up. Should I finance instead to get a better deal?

The dealer gave us the NADA values on the car we are eyeing for both a loan and retail. The loan is $4000 less than retail. Since we have enough cash, should we go with the loan and just pay off the balance in full for the first monthly payment? I was thinking this way we get the better deal and the bank makes nothing off of interest.I have enough cash to buy a used car straight up. Should I finance instead to get a better deal?
I'm assuming they offer "no finance charge" if paid by x date and then rip into you with a high rate if you don't pay it off by x date? If that's the case, then buy it on the loan and then pay it off before the due date. Try offering them 4500 off the book, first.
If you have enough then you should think about maybe getting a new car (Kia makes great cars for awesome prices.) instead. New cars have a lot of benefits that a used car won't; better gas, cleaner, warranty, and the lemon law (which actually only applies to new cars - go figure).



But, as for your actual question, it does sound like you are getting scammed. I would seriously shop somewhere else. The point of getting a loan is that they MAKE MORE money off of it from people who cannot afford to buy the car outright. In fact, all good car dealerships (new or used) will give you a HUGE discount if you buy it outright AND when you buy it in cash.I have enough cash to buy a used car straight up. Should I finance instead to get a better deal?
Why would you finance if you have the money around?



Is the money coming from a legit source? It sounds too good to be true, when someone offers you that much less than retail for the interest. I don't think you should believe it.



Although I don't know much, I know you should pay cash. It's always better to own something right away and know that you have it and have paid for it. That way, there are no clauses, no tricks in signing and such. Just pay for it!



Hope this helps. I reccommend picking up some Consumer Reports magazines for tips on buying cars, and reading Forbes.com and edmunds.com reports- they offer lots of tips. Be careful out there!



-haynedoy
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contact me on my Email marvelousloanshome@yahoo.comI have enough cash to buy a used car straight up. Should I finance instead to get a better deal?
The loan value of the car should tell you something about what you should be willing to pay for a cash price. You do not need to pay retail even if you don't finance.
finance and build credit. what i would do and did. get a loan from bank and buy the car with the loan, with the rest, nothing but car parts, but what ever your into and what makes you happy
Never finance if you have the cash...the charges and interest will make you pay out a lot more over time. And if they want to charge more for a financed vehicle vs. cash sale....go somewhere else and buy.
Why would a loan price be less than a cash price? Answer is it wouldn't be. You misunderstood, or the dealer is scamming you.
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