Many dealers will not accept cash after a certain dollar amount. No dealer wants 50.000 in cash on site not to mention this money has to be taken to the bank by an employee. The last 2 dealers i worked for would not sell a car in cash it's there policy not the states. Dealers are a private co. and as such make there own rules and policy's. Dealers don't care who finances your loan they just want to sell you a car and yes if you allow it they will scam you, always have always will.
What happens to dealer financing profit if you pay off car early?
- Thread starter HonorAndHonesty
- Start date
Twice I bought a car with dealer corporate financing in order to receive a substantial rebate. In both cases I was told it was “required” that I make payments for at least six months before paying it off. Oddly enough I was never able to find that requirement in the loan paperwork. I thinks it’s a reasonable guess that six months is a common minimum before they get their cut.
Call the finance company and get a "payoff quote." That is the lump sum that will pay off the loan if paid before the date the quote expires. If the APR is not zero and you pay before that date, you will get a refund for the unearned interest. You may have to send payoff to a different address than regular payments.
dnewton3
Staff member
Financing cannot be required to be done through the dealer. Financing is a product, and it is against the law (enforced by FTC) to do "tie in sales" by requiring the use/purchase of one product to purchase another. The friend should be able to pay for the vehicle without being forced to finance the vehicle at all. Even if the purchaser wanted to finance it, it's not a requirement to finance the car through the dealer. There are also legal limits to terms of financing, but not as many as you'd think. The minimum months to be paid is negotiable, etc.
Rather than going into a bunch of mumbo-jumbo here, I suggest people check out the YT channel called "Kevin Hunter The Homework Guy" (sounds like a home improvement channel, but it's actually a channel that promotes knowledge-based negotiations with car dealers). Many of the shady practices done at dealerships are illegal, but most folks don't know or lack the skills and bandwidth to fight the power, so to speak.
Your friend should report the transaction to the FTC.
Rather than going into a bunch of mumbo-jumbo here, I suggest people check out the YT channel called "Kevin Hunter The Homework Guy" (sounds like a home improvement channel, but it's actually a channel that promotes knowledge-based negotiations with car dealers). Many of the shady practices done at dealerships are illegal, but most folks don't know or lack the skills and bandwidth to fight the power, so to speak.
Your friend should report the transaction to the FTC.
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I've wondered if the dealer lost their reserve on my car loan. I didn't like Wells Fargo's terms, and had the money, so I cut a check and paid off after about 4 weeks (took 2 weeks for the paperwork to get to me, and they took at least a week to process my check). I think the APR wasn't far from the norm at the time (8% on a 2 year old car, last summer?) but if they lost money, eh, I'm quite sure they made plenty off me all the same. No love for dealerships and the games they play.
The dealers here have started quoting two prices-
One if you finance with them
Two-a higher price to bring your own finance
But yes-not "required".
Please note there is a major credit union here that finances many vehicles. Just about all dealers use them. So-there really isn't an advantage for applying with this credit union beforehand-and you get the "lower" price from the dealer.
Utah is one of the worst states to buy a vehicle in. Weak consumer protection laws coupled with just a few corporations that own the majority of new car franchises, therefore limited competition-quite frankly-it's terrible.
I doubt cash was literal. Likely meant check or wire transfer from a liquid account.
O no. Im talking cash money. Like a duffle bag of 100 dollar bills. They were told no.
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I bought a 2018 Subaru Forester brand new in 2018. An extra $300 off, if I financed it. So I financed $10,000 thru them. Made 3 months payments and called for the payoff amount.
Sent them a check and got a clear title a couple weeks later. Save a couple hundred dollars.
Have to learn to play their games.
Sent them a check and got a clear title a couple weeks later. Save a couple hundred dollars.
Have to learn to play their games.
Over on reddit/askcarsales they have talked many times about how taking "actual cash" costs them money.
Think about this for a moment. If I handed you $50,000.00 in cash would are they things you would need to do-in a business situation?
Some are under the impression that cash is the "magic elixir" when buying a vehicle-when in practicality-it's the opposite.
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Credit and loans is what “creates” money. That’s why loans are preferable. The monetary system would collapse without loans.
I am 77 years old. Bought many cars but have never had a dealer refuse cash. On the other hand I have never seen a squeaky clean car dealer. They all work get as much money out of you as they can by any means necessary. I have simply walked off from several deals.
What was the most expensive car you bought-from a dealer-for "cash"? Was it physical cash or a check or the like?And how long ago was this?
Regarding paying with a check. On my recent purchase the dealer informed me that if I pay with a personal check they will have to check my credit. No credit check with a cashier's check, so that's how I paid. Did anyone have this happen to them?
That's standard operating procedure. Re - Checking your credit is another means to validate your identity-and they need to know if you COULD FINANCE if they check came back to them for some reason.
FYI-they verified the cashiers check as well.
They had to run a credit check on me.
840 + on my score, so no problems accepting my check.
They called the bank the cashiers check was drawn upon.
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