$5k Dealer Markup unless financed through them

[balucipher]

I'd finance with them and refinance as soon as anything contractually obligates you allows

A lot of dealers will tell you that you can't refinance within 2-5 months but don't put it in the paperwork so once you do they literally can't do anything to recoup their loss. Read over your paperwork and refinance as soon as you can

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[GotWake]

Cash is better - where can you get a no risk 1.99 return?

No, cash isn’t better. I can top 1.99% return anytime investing.

 

[bpurtz]

No, cash isn’t better. I can top 1.99% return anytime investing.

You must have missed the "no risk" part of my quote. Investing always has risk. Maybe you forgot about the 2008 housing crisis or the 2020 covid plunge?

Anyway I don't want to hijack the OPs thread - you go ahead and finance/invest your way - I'll pay cash.

 

[da_jokker]

Here's a trick I learned, but haven't had a chance to actually use it myself.

Finance the car to make them happy, on your very first payment practically pay off the car. What you're looking for is extremely low balance so that you don't accrue any interest dollars.

Then make your normal payments until the Nth required payment is done (aka you have to do it least X months), and then pay off the remaining balance.

Now I guess it's only works if you are able to basically pay it off right away. I've done something similar in the past where I was required to make three payments, but I didn't think about paying a huge amount on the first go around to eliminate the interest.

 

[GoTigersGoBronco]

You can likely refinance or payoff the day the loan gets funded. Yes, their reserve gets charged back, but that's #tooBad

I would advise you to go in two directions with this.

A. Say "my credit union offered 2.00% can you get close, so I don't have to refinance"

B. Refinance or pay off on the day the loan is funded. You can refinance before the trade line even hits your credit report.

 

[Pressurized]

Dealer finance can actually be quite good... You just gotta watch them and make sure it's a competitive rate. Then pay it off whenever you want to. I always finance a little, even though I don't need to. First it makes the finance guy much more pleasant to deal with and he's not nearly as worked up when you say no to all of the other dealer add ons. Second, to make the finance guy happy, tell them you will prepay your first 2 years of service (6 oil changes). The vast majority of us were going to have them do the service anyways.

 

[kodiakisland]

So on one hand we complain about ADM on a Bronco that we reserved and ordered and say don't do business with those dealers, but at the same time we say yeah, reward a dealer playing games by ordering through him. Not sure I get it.

We aren't talking about a deal on a lot vehicle. You bet, do whatever you need to for the best deal on a vehicle sitting on their lot. But a special order? I don't care if I was planning to use their financing, I'm not rewarding a dealership with my order that is openly charging ADM on a Bronco to those not willing to play their game.

I'd much rather find another dealer who isn't going to charge ADM at all instead of one who wants me to jump through hoops. I don't like games.

 

[kodiakisland]

Dealer finance can actually be quite good... You just gotta watch them and make sure it's a competitive rate. Then pay it off whenever you want to. I always finance a little, even though I don't need to. First it makes the finance guy much more pleasant to deal with and he's not nearly as worked up when you say no to all of the other dealer add ons. Second, to make the finance guy happy, tell them you will prepay your first 2 years of service (6 oil changes). The vast majority of us were going to have them do the service anyways.

I don't know, I find it pretty easy when I tell the finance guy up front here is the form to fax to my bank and no I don't want any additional products or services. Has gone smooth and quick every time.

 

[Roger123]

Run from this dealer.

 

[nhbronco]

My dealer honored MSRP without financing. But they asked me to finance it because it hurts their numbers when people don't finance. They asked i wait four months to pay it off. Since they asked nicely, I went ahead and did it and will wait to pay it off. They are a local dealer to me and I do like them. The terms were fine with a decently low interest rate.

 

[indio22]

Here's a trick I learned, but haven't had a chance to actually use it myself.

Finance the car to make them happy, on your very first payment practically pay off the car. What you're looking for is extremely low balance so that you don't accrue any interest dollars.

Then make your normal payments until the Nth required payment is done (aka you have to do it least X months), and then pay off the remaining balance.

Now I guess it's only works if you are able to basically pay it off right away. I've done something similar in the past where I was required to make three payments, but I didn't think about paying a huge amount on the first go around to eliminate the interest.

I did exactly that approach last year when buying a car.

The car maker (Kia) was offering a significant savings if financed. The dealer told me it would help them if I waited 3 months to pay off the financing, else apparently they would get dinged. It was a request from the dealer, and there was no requirement, I could have walked out the door and immediately paid it off. But since they were giving me my asking price, I said ok.

Also I made sure there was no penalty for early payoff. I paid the bulk down right away, and then paid the remaining few hundred the next couple months. Worked fine no surprises.

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