Think you’ll get a good deal paying cash for a car? Think again.

[Reluctant Watchman]

Our first “new” car as a young married couple was a minivan. We’ve driven that thing all over the country for the past 20 years. We are now looking at buying a new car. We found one we liked and called the dealership to ask about payment and if there were any discounts for paying with cash. I was a bit taken back to learn that if I didn’t finance the car, that I’d have to pay $1,000 more than the advertised online price.

Come to find out, the dealership has partnered with the bank. They get a certain cut of the finance (interest) charges sent back to them when a person finances a car. I told him that I could just finance the car and then pay off the loan, to which he said that it’s kind of a “gentleman’s agreement” that I hold the loan for six months. I told him no thanks. He did say that he was going to ask his manager if they’d sell it for the advertised price. He never called me back.

This may just be one dealership, but I was just surprised what some people in the car world do these days.

[gkearney]

Just do the financing and the next day go in and pay it off. “Gentlemen’s Agreements” are not legally binding.

[Reluctant Watchman]

Just do the financing and the next day go in and pay it off. “Gentlemen’s Agreements” are not legally binding.

I care more about my integrity than saving some cash on a car.

[PressingForward]

We have bought three new cars and a motorcycle the last two years. No break for cash, but I also refused to pay more than MSRP. In the case of my wife’s Sorrento PHEV, people were paying 10k over MSRP at other dealers. Kawasaki wanted $600 over msrp for a KLR 650 but took my card with no mark up and no CC fees, so I got 2% off it
I financed the Suburu at 0.9% AND got a rebate…….

Decided paying new car prices for a used car didn’t seem smart. Used car market is starting to come down but is still crazy.

[gkearney]

Just do the financing and the next day go in and pay it off. “Gentlemen’s Agreements” are not legally binding.

I care more about my integrity than saving some cash on a car.

I don’t see how doing that would be an affront to your integrity. The dealership set up this shortsighted scam they are running and you’re simply found a way around it.

[Jashon]

Just do the financing and the next day go in and pay it off. “Gentlemen’s Agreements” are not legally binding.

Yes to this. Back in 2000, I bought an expensive BMW new in NC, which I shouldn't have done in the first place. I should've bought a less expensive car or used car. Anyway, I was basically strong-armed in the dealership to do the financing, even though I didn't want to. They said nothing to me about a 'gentleman's agreement'. I paid the loan off within a week, rather than have $20+ of interest flying out the door per day, which I wasn't guaranteed to make with my investments, with the stock market entering a two-year bear market.

[Reluctant Watchman]

Just do the financing and the next day go in and pay it off. “Gentlemen’s Agreements” are not legally binding.

I care more about my integrity than saving some cash on a car.

I don’t see how doing that would be an affront to your integrity. The dealership set up this shortsighted scam they are running and you’re simply found a way around it.

If purchasing a vehicle comes with a verbal agreement that I do something, I’ll honor that. I don’t care what the legalities are. Honesty and integrity are sorely missing in many of our societal interactions these days.

[Reluctant Watchman]

Just do the financing and the next day go in and pay it off. “Gentlemen’s Agreements” are not legally binding.

Yes to this. Back in 2000, I bought an expensive BMW new in NC, which I shouldn't have done in the first place. I should've bought a less expensive car or used car. Anyway, I was basically strong-armed in the dealership to do the financing, even though I didn't want to. They said nothing to me about a 'gentleman's agreement'. I paid the loan off within a week, rather than have $20+ of interest flying out the door per day, which I wasn't guaranteed to make with my investments, with the stock market entering a two-year bear market.

Key words here: “They said nothing…” If nothing was said about this agreement, then you were not in the wrong. You never broke any agreement, verbal or otherwise.

[Jashon]

The strong-arming was somewhat alarming and definitely controlling, which made me never go back to that dealership again. I bought another expensive car around that time, at another local dealership, and the experience was much better.

[cab]

Just do the financing and the next day go in and pay it off. “Gentlemen’s Agreements” are not legally binding.

I care more about my integrity than saving some cash on a car.

I don’t see how doing that would be an affront to your integrity. The dealership set up this shortsighted scam they are running and you’re simply found a way around it.

If purchasing a vehicle comes with a verbal agreement that I do something, I’ll honor that. I don’t care what the legalities are. Honesty and integrity are sorely missing in many of our societal interactions these days.

Honesty and integrity and car dealerships do not belong in the same discussion. FYI I bought a new car last month and they are still all liars.

[gradles21]

Our first “new” car as a young married couple was a minivan. We’ve driven that thing all over the country for the past 20 years. We are now looking at buying a new car. We found one we liked and called the dealership to ask about payment and if there were any discounts for paying with cash. I was a bit taken back to learn that if I didn’t finance the car, that I’d have to pay $1,000 more than the advertised online price.

Come to find out, the dealership has partnered with the bank. They get a certain cut of the finance (interest) charges sent back to them when a person finances a car. I told him that I could just finance the car and then pay off the loan, to which he said that it’s kind of a “gentleman’s agreement” that I hold the loan for six months. I told him no thanks. He did say that he was going to ask his manager if they’d sell it for the advertised price. He never called me back.

This may just be one dealership, but I was just surprised what some people in the car world do these days.

[Serragon]

When purchasing a car, the key is to never talk about how you will pay for the car before negotiating a price. Even if you plan to pay cash, you can tell them that you might be interested in a loan and putting a large % down.

Once the price has been negotiated, then you can tell the finance guy that you are paying cash. He won't be happy and will probably try harder than ever to upsell you on all of the useless warranties and products they offer. But if you tell them up front you are paying cash, they will screw you on price since they no longer have the option of being subsidized by the bank through financing.

[InfoWarrior82]

When purchasing a car, the key is to never talk about how you will pay for the car before negotiating a price. Even if you plan to pay cash, you can tell them that you might be interested in a loan and putting a large % down.

Once the price has been negotiated, then you can tell the finance guy that you are paying cash. He won't be happy and will probably try harder than ever to upsell you on all of the useless warranties and products they offer. But if you tell them up front you are paying cash, they will screw you on price since they no longer have the option of being subsidized by the bank through financing.

They will also give you a higher APR number before they get to the extended warranty part of the spiel. If you turn down the extended warranties, they will go to the back room, lower the APR and try and throw in the warranties for "free".

[Reluctant Watchman]

Sounds like I just need to avoid going through a dealer.

[Serragon]

Sounds like I just need to avoid going through a dealer.

There are good dealers out there. Last car i bought I was in and out in under 2 hours. I told them what I wanted to pay and they accepted. They had 1 fee that I thought was not necessary, and they removed it. The finance guy did not try and sell me anything. It was a good experience.

[Cruiserdude]

Sounds like I just need to avoid going through a dealer.

Yessir

[cab]

Sounds like I just need to avoid going through a dealer.

You can. Just know what to expect. Know what others are paying using TruCar or other websites… And don’t pay for anything but the car… no vin etching, special blinking bulbs, service contracts…. Be willing to stand up and walk out
And if you get a warranty, buy it from an online dealer…. I bought my Ford’s PremiumCare through an online dealer in New Jersey at the lowest possible price…. Did the same with my Honda…. The dealer couldn’t touch the price…

Just know pickings are SLIM….. it’s not like old days where there was variety on lots….

[Bronco73idi]

You want a Toyota come to Oregon, we don’t charge over MSRP.

If buying brand new and wanted to keep it for a long period I wouldn’t buy any other brand of car or suv then Toyota, all new cars are direct injection and can have serious carbon issues. Toyota is port and direct injection, 2 injectors per cylinder because direct injection is a horrible way to run at low rpms.

Truck is different, only because I would want something to fit my specific needs. I built my truck, it is an 08 F450 with a 97 215hp Cummins, the two hair dryers (turbos) hanging off of the exhaust system help it push 1200 plus ftlbs of torque. I have over 2k miles on the build so it’s time to slap it on the dyno, just for fun

[Cruiserdude]

You want a Toyota come to Oregon, we don’t charge over MSRP.

If buying brand new and wanted to keep it for a long period I wouldn’t buy any other brand of car or suv then Toyota, all new cars are direct injection and can have serious carbon issues. Toyota is port and direct injection, 2 injectors per cylinder because direct injection is a horrible way to run at low rpms.

Truck is different, only because I would want something to fit my specific needs. I built my truck, it is an 08 F450 with a 97 215hp Cummins, the two hair dryers (turbos) hanging off of the exhaust system help it push 1200 plus ftlbs of torque. I have over 2k miles on the build so it’s time to slap it on the dyno, just for fun

Oh I didn't realize that you already had this on the street and running?! Sweet man! You gotta share some pics or vids or something.
And I second your recommendation for Toyota stuff.

[Bronco73idi]

You want a Toyota come to Oregon, we don’t charge over MSRP.

If buying brand new and wanted to keep it for a long period I wouldn’t buy any other brand of car or suv then Toyota, all new cars are direct injection and can have serious carbon issues. Toyota is port and direct injection, 2 injectors per cylinder because direct injection is a horrible way to run at low rpms.

Truck is different, only because I would want something to fit my specific needs. I built my truck, it is an 08 F450 with a 97 215hp Cummins, the two hair dryers (turbos) hanging off of the exhaust system help it push 1200 plus ftlbs of torque. I have over 2k miles on the build so it’s time to slap it on the dyno, just for fun

Oh I didn't realize that you already had this on the street and running?! Sweet man! You gotta share some pics or vids or something.
And I second your recommendation for Toyota stuff.

I’ll load a video of me doing a donut at the Winchester Bay dunes on YouTube and link it here.

[bbrown]

I worked in new car dealerships (in the shop) long enough to want nothing to do with a new car. A 3-4 year old 30-50k mile car will probably have fewer problems. The new car bugs have been worked out. I find I don’t like most current new cars at all and find the subscription based features super offensive. The more I fight the unfathamable stupid programmed into these newer cars the more I appreciate my $1200 91 metro which gets better mileage with out the complexity.

[Reluctant Watchman]

I should clarify, “new” for us is usually 5-10 years old. We ended up getting a Toyota today. Just got back from picking it up.

[BeNotDeceived]

Sounds like I just need to avoid going through a dealer.

Goto CarMax.

[FrankOne]

Just do the financing and the next day go in and pay it off. “Gentlemen’s Agreements” are not legally binding.

I care more about my integrity than saving some cash on a car.

I don’t see how doing that would be an affront to your integrity. The dealership set up this shortsighted scam they are running and you’re simply found a way around it.

If purchasing a vehicle comes with a verbal agreement that I do something, I’ll honor that. I don’t care what the legalities are. Honesty and integrity are sorely missing in many of our societal interactions these days.

the situation on their end is what is called getting paid on the back end which has been normal for at least the last 40 yrs. (from my experience).

If you want to try it again at a different dealership, just buy the car with financing without saying a word and then pay it off whenever you like. No word is broken and nothing implied.

[HVDC]

I worked in new car dealerships (in the shop) long enough to want nothing to do with a new car. A 3-4 year old 30-50k mile car will probably have fewer problems. The new car bugs have been worked out. I find I don’t like most current new cars at all and find the subscription based features super offensive. The more I fight the unfathamable stupid programmed into these newer cars the more I appreciate my $1200 91 metro which gets better mileage with out the complexity.

Great cars.

Should still be making them.

After my catalytic converter briefly plugged up, then blew out.

Over 50 mpg.

Failed emissions check after that.

Gave it away to a kid with no money who walked to his transfer station job in the middle of the deseret.

He kept it running for several more years.

Probably never registered it.

I'd buy one again.

Sir H