What happens to dealer financing profit if you pay off car early?
- Thread starter HonorAndHonesty
- Start date
I'm talking about forcing the buy to finance. The price should be the price regardless of how payment is made (ex finance, wire transfer etc).
It varies by dealer, when I bought my XT4 they accepted a personal check at 7 PM with no credit check. My credit reports are frozen so I know they couldn't even have checked behind my back. I traded a 2023 with no lien so that might have helped. Finance manager was super cool, right before I wrote the check he told me I could put up to $5k on a credit card if I wanted to earn some airline miles....that was a nice surprise!
Yea-I did the same thing when I bought my Silverado-I can't remember-it was either 3 or 5 thousand they let me put on a credit card. But yea your no lien trade and your high credit score made you "low risk".
Mine are all frozen as well. During one failed attempt to pay $7000 for a used car last spring I was told they needed to run my reports.
“It’s a standard practice, all dealers do it.”
“My credit is frozen and the passwords are all locked up at home.”
“Well, I suppose we could make an exception for now…”
That has now become my standard response to a salesman wanting me to do a credit application. That fact it’s the truth is even better.
The dealer often gets a kick back is about all that goes on here for selling financing. They need to typically have the loan for a certain period (I have heard 4 mos.) before they get that payout. As always, read the terms of the loan as it will say what you can/can't do. Often dealers will make their best OTD deals if you finance through them and at times, it's not the best terms. I did this with 2 of my vehicles and paid them off within the first year and ended up ahead (all-in OTD/total cost) even with crappier rates than my credit union/bank would give me.
The car market has changed dramatically if that's the last car you purchased- in 2000.
It should be- but it's not. Let's be honest- it's inconsequential for most smart money consumers to get a loan and pay it off or refinance the minute you get a loan number.
Or- conversely you can pay a higher price. Until manufacturers sell direct- this is the latest game- 1 price for finance a higher price for cash.
I like walking around new car lots after hours when no sales people are around. I usually have a make and model in mind. but when I look at the cheapest work truck that I can actually afford, I’ll pass and go for the one with leather and sunroof.
I just did a cash deal on a brand new 2020 Kubota 2290-48. I asked the sales person if they wanted financing, credit card or debit card? He said for this one debit card or cash.
At GM dealerships I get preferred pricing which is better than employee pricing, so they can’t play games. I know within a few dollars a month what my payment is going to be before I walk in.
I’m doing okay and not missing any meals, so I’m not jealous of people making a few bucks on my account.
Are you retired with a discount? Union affiliation or? What organization do you belong to or retired from for this preferred pricing?
Have you considered going to a different dealership? They’re not ALL shady, although many are.
That reminds me, we just bought the Yukon from a dealer out of Oklahoma. They sent a 3rd party to my house, where I signed all the docs, he verified my wife and my ID and wanted to meet at the address on our driver license, inside the house, not in the driveway. The dealer has been burned and said this was a requirement of their payment processor or something. I wired them the $82,000 and then had to wait on them to deliver the vehicle and then a few more weeks for the title. I asked them “you have the money, the vehicle and the title, how can I screw you?”
dnewton3
Staff member
I would question if it's illegal.Its very widespread here...many, many dealers ( non affiliated) do it. Again you can purchase the vehicle-but you will pay more for it. They are not saying you can't buy it if you don't use our financing. That I think is the work around. It's right on their website.
Here is an example- Price with Dealer Financing
$37,590 This is a Nissan Dealer, but there are other dealers that do this as well.
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That's a huge security risk at most dealerships as they don't have the personal to deal with large cash transactions.
I find it odd a dealer would not take a personal check; can't they easily electronically validate it?
Lexus never questioned my check and even allowed me to put $4K on a credit card to sweeten the deal.
Same with a local Honda dealership on a 2019 CR-V EX-L.
As others have suggested, find a better dealership if you are getting the run-around. You are the customer; do they want to earn your business or not?
Lexus never questioned my check and even allowed me to put $4K on a credit card to sweeten the deal.
Same with a local Honda dealership on a 2019 CR-V EX-L.
As others have suggested, find a better dealership if you are getting the run-around. You are the customer; do they want to earn your business or not?
Too general. Each and every car deal at a dealer is a unique transaction. Type of trade, Trade equity, FICO, how bad dealer wants to hit their numbers at the point of time in the month, source of financing ,etc. What the dealer did or didn't do in your deal doesn't matter in the next deal.
4WD
$50 site donor 2025
We tend to have favorite and least favorite dealerships - the inventory shortage sent me back to the latter - and I was reminded why …
In the past a good way to upset a dealer was pretend to get financing with them. At final transaction pull rug out and show them the local credit union offer with lower rate they can match or write deal over .
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