rdhetrick

Texas

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I'll also add that paying cash might actually be a downside for the dealer. If they get some form of kick-back from the finance company they work with, they wouldn't get that on a cash deal.
When I bought my last used car, I was told that if I wanted the lowest price, I would need to finance it. I could pay it off the first month if I had the cash to do so.
Don't know if this is true in all situations, but it makes sense.
Rob - Solo Full Timer
2006 Mandalay 40E
2015 Jeep Grand Cherokee
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propchef

NORCAL

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rdhetrick wrote: I'll also add that paying cash might actually be a downside for the dealer. If they get some form of kick-back from the finance company they work with, they wouldn't get that on a cash deal.
When I bought my last used car, I was told that if I wanted the lowest price, I would need to finance it. I could pay it off the first month if I had the cash to do so.
Don't know if this is true in all situations, but it makes sense.
This. Dealers work with certain lenders and get compensation for it.
For the last two cars I bought (one just weeks ago), I got their best price and used their financing. The moment I got home I started the process of refinancing to my local CU. My payment is now lower and the term shorter.
When shopping, I never discuss financing until a price is agreed upon.
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wing_zealot

East of the Mississippi

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Why didn’t you just get the credit union financing to begin with?
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hoopers

Loveland, CO

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30-35% off msrp is typical invoice pricing on most new trailers.
2014 Winnebego Vista 30T
2017 Ford Expedition
Texas gulf coast, Colorado, or on the road camping somewhere
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rdhetrick

Texas

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wing_zealot wrote: Why didn’t you just get the credit union financing to begin with?
In my case, using the dealer financing dropped the price of the car $1500.
It wasn't the lowest interest rate I could have found, but I knew I'd be paying it off right away so it didn't matter.
If I had intended on keeping the loan, it would have made sense to take the discount for using their financing, and then moving it to a credit union as the other poster did.
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propchef

NORCAL

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wing_zealot wrote: Why didn’t you just get the credit union financing to begin with?
I was approved at my CU before I even stepped foot into the dealership. By using the dealer's financing I was able to get a better deal, in one instance it money off the top, and this last time they gave me more for my trade (yes I know it's a money shell game). The finance guys use the financing kickbacks to talk you into things like the extended warranty and ceramic coatings. "What if I tell you I can lower your payment AND you can have the ceramic coating!" Forget the coating and just give me the difference in the price.
The only drawback to this scenario is that often you can't refinance until the "official" registration arrives from the state, which can take 30 days or so.
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Lwiddis

Near Mammoth, California

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The ceramic coating?
Winnebago 2101DS TT & 2020 Chevy Silverado 1500 LTZ Z71, WindyNation 300 watt solar-Lossigy 200 AMP Lithium battery. Prefer boondocking, USFS, COE, BLM, NPS, TVA, state camps. Bicyclist. 14 yr. Army -11B40 then 11A - (MOS 1542 & 1560) IOBC & IOAC grad
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