Need advice paying cash for new truck

I paid cash for my truck. After some negotiation, Just wrote a personal check. They tried hard to get me to finance. Even offered me $500 cash to finance.

If you can pay cash, there really is no need for much negations. I like a clean, never financed title.

 

I would consider that.. As long as their wasn't an early loan payoff charge. Take the cash, finance for a week. Payoff loan. Win

 

I dont inderstand?? Why would I give effort to walk to mailbox?? I'm getting old I want to enjoy life not wait for mail

 

There's Always a work around. The dealership told me they couldn't remove the dealer fees. I told them "ok, then subtract the difference from the price" which they did.

 

There is no interest when you pay cash and buy it. Am I right? If not do I pay interest after I have title in hand?? Please let me know because I always thought if you give people money for asking price you own it.

 

Except you have to probably pay tax on that earned interest of at least 15%. Not worth the hassle to me.

 

I used to work as a car salesman at a Toyota dealership. Here is what you need to do.

First, tell them you want to finance it through them. You'll get a better price that way. Why? because if they steer business towards a particular finance company, they get a kickback and can apply that kickback to the cost of the vehicle to lower the price.

Once the price is settled, switch gears and tell them you would rather pay cash. They'll bitch moan and complain, because they won't be making as much profit but stick to your guns.

Remember: Your two most powerful weapons when buying a vehicle are your Feet. Offer them the price they came up with in cash. If they say no, then walk.

I guaran-fucking-tee you that you won't make it to the door before they call you back and agree to the deal.

Bonus tip: If possible, wait until the last day of the month. Salespeople often need to get their quotas for the month, and they might lower the price. Even if they don't make much commission on that particular vehicle, they'll make up for it in spiffs they get for selling X number of cars.

Good luck.

 

Exactly. I penciled it out. It doesn't make sense. Maybe if you're paying $500k cash for a house. But a 35k vehicle doesn't make any sense to not pay cash.

 

I really appreciate your feedback. This is what I have been looking for all day. I will take your advice!!

 

You're welcome. Let us know how you make out.

 

Only caveat, when you tell them you want to finance, as others have said, prepare for them to want to talk about monthly payments "you can afford" rather than the vehicle price.

 

Agreed. Every time they asked me, I just said, I'm not sure yet.

 

treasury notes are tax free

 

Until you cash them.

 

I am not reading 5 pages, and someone probably already said this. Just finance it though them, let them make a little money, and pay it off. The first thing they are going to do is ask you how you are paying for it. It doesn't matter if you tell them up front or lie and tell them later. They can decide they don't want to sell you the truck at any time. Just be honest.

 

If you let the dealer arrange financing for you, weather it is a Credit Union, Bank, or Toyota Motor Credit the lender kicks back something to the dealer . some times a flat fee, or a % of the amount financed. there is a Truth in lending Law . which states simply ( If you the Customer ask....What is your Buy rate ? he has to tell you, its the Law. That is how that guy in the F&I office gets paid( he is on Commission too ) he will try and sell you extra warranty, Paint protector Etc. Etc. Tell him "No Mop and Glow and no Choke and Croak" So right up until the last moment, as he is feeding that Blank contract into that machine that fills it out..........tell him you have changed your mind. You want to pay Cash. If the F&I guy suddenly becomes less friendly or hostel, you have done it right. I have had one through me out of his office saying " We have nothing more to discuss" I have been buying new cars sense the early 70's. You should not have to come away from the dealer feeling like you have been cheated, or taken advantage of.

 

my apologies.. yes, you do pay interest at the federal level... so knock off a chuck of that pie... still. you do come out ahead. if only marginally

 

Guess it depends on your IRR threshold. I agree at something like 2-3% return, maybe it doesn't make sense for you. Hassle, management, etc.
However, even most conservative investment portfolios have returned 8% in the last several years. i.e. I bought my truck a little over a year ago. I could have paid cash, but left the $40k in a Vanguard fund. To-date, I'm at 16.9% return, or around $8k. Interest I've paid on the debt to-date is less than $1k. Worth the "walk to the mailbox" for me, even post-tax.

 

I appreciate all input. I really appreciate every thing. I just have to say salty dog thanks!!!! I will go with his info. Not saying I will not buy a 17. I'm up for anything. That could be a 17, 18 or even 19 model tacoma. Reguardless I learned a lot in this thread. A lot of typically non communticating individuals or reading the first post comments. I appreciate the feedback from everyone however.

 

I have bought so many Toyotas that they all know me now in every department. They know I am a "bullet". So I tell all my friends that I refer over there to just tell the finance guy they are a "bullet". They ask what that means, and I say to just say it. They always think they are in the car business and they are out of there in no time.