New car: Cash or loan?

[javasaurus]

A friend asked me for advice, and I have no idea. So I'm asking you guys.

Will car dealers change a car's price if they know you'll be paying cash instead of taking a loan?

Comments

[acroyear70.livejournal.com]

depends on the person, I think, and if you mean real cash or a cashier's check / money order.

If the latter, then possibly, but only if they're sure it isn't just a case of getting a loan somewhere else like your own bank.

if it is real cash, that gets shady - the "Law" tends to look at people with tons of real cash on them as being drug-related. normal people don't carry tons of cash, so they must be abnormal and thus likely doing something illegal.

And the law is rather obnoxious in that regard, thanks to property seizure and forfeiture laws written or supported by Joe Biden (his one black mark on civil rights). If you're pulled over on a routine traffic stop, and happen to be carrying a butt-ton of cash (say, over $1000), then can seize that on the spot, without a warrant, and use it as evidence that you are likely a drug dealer. From there, that becomes probably cause for search warrants for the rest of you. Even if they don't carry that out, don't file charges, or do and you get acquitted, you likely will never get that cash back.

The laws right now on the books that permit this are horrible affronts to our constitutional rights, but so far, the courts have been rather lenient on them in the so-called drug war.

[acroyear70.livejournal.com]

so dealers may give the discount, but sometimes would rather not have the cash as such because that may make them accomplices to some crime in the eyes of the law, especially if the cash is suspected to be drug related, laundered, or stolen.

[javasaurus.livejournal.com]

Ummm...not a pile of paper money. More like a cashier's check.

Though the idea of buying a car with a big drum full of pennies comes to mind...

You bring up interesting and somewhat distressing points about a cop's ability to take your money.

[blueeowyn.livejournal.com]

My understanding is that most of the time the dealer doesn't care (since they aren't the one doing the financing). Some company's will offer a rebate for cash.

The bigger question (from the dealer point of view) is are you planning a trade-in?

[thatwasjen]

Anecdotal: the last time I bought a car, I offered a lower price (which was the amount of cash I was able to spend on a car), and the salesman said he would agree to that price if I took financing from the dealer.

I knew that in Virginia, there's no prepayment penalty, so I took financing and paid off the whole loan a month later.

[blueeowyn.livejournal.com]

I <3 you

[javasaurus.livejournal.com]

That could work well if the financing rate is low and one month's interest is significantly less than the price reduction.

Thanks!