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Quote:

Originally Posted by Gspeed (Post 3601456)

Hubris + rookie mistake. Dealers frequently get kickbacks if you finance. Negotiate an added discount if you finance with them and then pay off the loan within 90 days.

oooooh I like it. I guess the game would be whether or not I could get a better deal with points/cash back/etc or thru their kickback.

You can tell I don't buy a lot of cars. :)

Quote:

Originally Posted by JamesBond (Post 3601469)

I guess the game would be whether or not I could get a better deal with points/cash back/etc or thru their kickback.

Exactly

#characters

Quote:

Originally Posted by Gspeed (Post 3601456)

Hubris + rookie mistake. Dealers frequently get kickbacks if you finance. Negotiate an added discount if you finance with them and then pay off the loan within 90 days.

Often you can be "ambiguous" as to the loan/cash until after you've negotiated a deal. Gspeed is correct, over the years I'm convinced I can negotiate a slightly better price if I agree to take a loan. Last two cars I've been ambiguous, letting me get quoted "payments" but always focussing on the PRICE of the car, then at the end, when I feel the deal is right, just write a check. Worse case like gspeed said, just agree to the loan and then pay it off immediately. Either way the price is often subsidized by the idea of creating a loan event.

Quote:

Originally Posted by JamesBond (Post 3601393)

But you know as well as I that the vast majority of CC holders won't do that. And that actually goes to the heart of what DR is all about - behavior modification. I think an interesting contrast is how DR and Clark Howard go about 'training' people to get out of debt. Dr says to pay off your smallest balance first. That gives the debtor a sense of accomplishment and is a quicker reward. CH on the other hand says to pay off your highest interest rate first (which I think is the better financial move... but requires more discipline which has already shown itself to be elusive).

Anyway you slice it, they are trying to help people that get into a bind via a rigged system. The .gov wants people in debt. Were that not true, how is it that they allow credit card companies... banks... to charge usurious rates of interest on people that already show they cannot afford to be where they are?

DR makes the point that if someone was so concerned about what is mathematically correct they never would have put themselves into thousands of dollars in debt at 15+% interest rates. Yes some people get into that situation due to a job loss or other crisis but by and large it’s people just spending whatever they want regardless of how much money they make. That’s why he targets the behavior over the math.

Quote:

Originally Posted by JamesBond (Post 3601469)

oooooh I like it. I guess the game would be whether or not I could get a better deal with points/cash back/etc or thru their kickback.

You can tell I don't buy a lot of cars. :)

Don't be surprised when the dealer will only allow you to charge a small part (few $K) of the purchase price on a credit card.

Quote:

Originally Posted by hoover (Post 3601414)

Or put the car on a CC get the points, miles, or cash back and pay it off that month.
Cheques are so 90s

This is the way.

Quote:

Originally Posted by Gspeed (Post 3601456)

Hubris + rookie mistake. Dealers frequently get kickbacks if you finance. Negotiate an added discount if you finance with them and then pay off the loan within 90 days.

Beat me to it. This is perfect advice. You’ll get a lower purchase price since the dealer is expecting to get their profit from the interest on the loan.

Quote:

Originally Posted by WXS15 (Post 3601503)

Don't be surprised when the dealer will only allow you to charge a small part (few $K) of the purchase price on a credit card.

usually $5k max

Quote:

Originally Posted by Vsop (Post 3601518)

Beat me to it. This is perfect advice. You’ll get a lower purchase price since the dealer is expecting to get their profit from the interest on the loan.

and they’ll decline the deal once you tell them you’re paying cash because many of the discounts rely on financing. They’ve seen it before and you aren’t going to “gotcha” them out of thousands of dollars with this one weird trick.

Quote:

Originally Posted by Vsop (Post 3601518)

Beat me to it. This is perfect advice. You’ll get a lower purchase price since the dealer is expecting to get their profit from the interest on the loan.

Make sure to read the fine print carefully. A lot of finance contracts require you to make a minimum number of payments before payoff to recoup the finance charges. Usually six to twelve months. Otherwise there may early payoff fees.