Why You DO NOT Pay Cash at Car Dealership

We had 16k cash to buy a pre-owned vehicle but it took 3 days in order to finally convince Honda we had no interest in financing a car or even building credit. The car was for my daughter who wasn't able to make payments so buying out right was the smartest move. Even though she didn't have an income at that time Honda was still trying to get her to finance. It was truly a back and fourth tugga war. They even tried threatening me with reporting such a large cash purchase to IRS, i said its fine we did nothing illegal and can easily provide proof where the cash came from. The funny part was the car had 2 previous owners which one owner missed payments and lost the vehicle. They didn't care if my daughter financed and missed payments. How can a dealership get a loan for the customer if the customer has no income. Fyi putting the money in the bank and just letting them debit payments out every month wasn't an option.

How much should I negotiate off MSRP if I am purchasing new car?

Not trying to be a know it all… What about the dealer hold back that dealers don’t want to talk about?

Chevy Dude, this video is very helpful. I took notes as I watched it. Thanks for sharing!

This guy is your typical dealership dude 😑. Price should be the price no matter how you pay. I ABSOLUTELY HATE buying a car at a dealer. Private owners are a million times better for used. No way around that with new.

In your previous videos you say always buy gap insurance, now you say don't. Pick one.🤔 this video "Why cash buyers have the upper hand. So can you!"

Dealers want that kick back.. I learned to just finance and pay off the following month so they don’t get a kick back..

Too much filler comments. Bye.

First set the OTD price and then disclose how you are going to pay. If you are buying a Tesla, it doesn't really matter.

Would you recommend buying a car through Costco auto program? Does it save you money and the hassles of negotiating?

If you have to finance, get your own on the outside. It will almost always have a better rate than the dealer. They mark up the rate.

Cash is always better than financing. It is really simple math. Pay cash and you don't pay interest.

Can u ask for a copy of the contract and take it home to read it

Can you do a video on what a smart car can do without you knowing it. Can they be tracked, can they send out your personal information, keep memory of your daily habits or even sell your information???? I know they can shut them down, so I was wondering how far it goes.

He is not lying. But I only pay cash, I will walk out if I have to.

Why do you have a video on paying cash as good and another not to pay cash?

Just pay cash. I always do. Most Americans will not pay the loan off and end up paying tons in interest even when they have the cash in the bank. Pay cash don't worry about saving a 1000 dollars just pay the cash and go in with your life

Absolutely lying on the profit %
The average dealership makes between 5-7% net profits per car, not 1%

Hey I enjoyed your video Chevy Dude. I appreciate what you do for people and getting them into good cars. Can you please recommend a dealer in my area that is like you? Maybe you know some car dealer in Springfield, Nixa, Republic, Ozark Missouri area's? Just asking cause I am buying a car soon and I am bringing a cashiers check to buy it. $15-20K? Thanks I am looking forward to more of your videos.

Don't Pay Cash at Car Dealerships? Of course I'm paying cash. Why would I require a loan if I can just write a check, duh. Take it or leave it. My 12 year old car works just fine. Besides, It will still smoke most of these new turbo turds anyways. 😂

its not whats true in america anymore, its what you can condition gullable people to believe, most americans including politicians are willing to take there chances on ending up in eternal damnation when they pass.

Just say I haven't decided!

You need to drop the price of that gmc sierra you got sitting on the lot 😂 I been looking at it but you want 2 much for it

Around where I live the dealerships are trying to do a NO NEGOTIATION price program and I absolutely refuse to buy because of that. I just do not understand why they think that is a good idea. I don't understand why the have sales people still.

What’s your advice on getting out or getting into a new car loan if your upside down 10-15k on the current loan ?

Out of curiosity would ordering a car through a dealership effect this process at all? It seems like it wouldn’t but obviously some of the things mentioned aren’t “cookie cutter” to the examples you use

I have never bought a new car in my life.

I buy houses instead

I buy older cars and keep 5 years

My houses make me more cash than cars

my experience: i was buying a honda civic for my son in 2022 (worst time for buyers). everyone was charging $3k market adjusted over msrp. they asked if i had a trade in and if i was financing. i told them i had a my 2015 audi a4 i drove in with to trade. they took it in for a trade in estimate. i was interested in financing depending on the interest rate. we negotiated 3 to 5 times with the salesman going back to the manager for approval. i kept asking for the out the door price (without financing and trade-in). i also told them i was interested in the extended warranty and all those extra stuff that the finance guy was going to push to sell. as long as i had the out the door price in writing without the trade in and financing, i was ready to make the purchase. i went into the finance room and told them this is what we agreed on the out the door price and he acknowledged the document. then before he had a chance to make his sales pitch and financing break down, i took out my checkbook and asked who to make the check out to. his jaw dropped... i bought the car $500 below msrp and no market adjusted price. i have purchased over 10 new cars in my lifetime and plan to buy 2 more in the near future.

If I'm financing with a dealership that has a low interest incentive from the manufacturer, like 1.9%, but don't want to finance 100% of the loan, wouldn't I at least want to put some $ down on the deal so I can avoid a high monthly payment?

Looking at buying a 2014 buick verano with 105k dealer said if i have cash he would sell it for 8995 OTD which is the listed price. Your thoughts??

I have no problem keeping a loan for 6 months or so for the dealership to keep their loan kickback if they give me a good deal. Did that with our previous purchase, put 50% down and paid the loan off in the 9th month.

I would also make sure if paying off early has an additional cost just to make sure that 1000 bucks off you would get that full benefit.

When I bought my Toyota GR86 in 2022 I financed it through Toyota at MSRP with no add-ons and no money down. Within a week I paid off the loan which really annoyed them because they didn't get their kick-back that needed 3 months of payments to be effective.

When I bought our RAV 4 XSE Hybrid back in 2021 it was my 4th Toyota in 15 years at the same dealership. I was already approved through my credit union but with the cooperation of the sales manager I bought their (much) higher rate and they discounted the 48 month (amortized on paper) difference between my rate and theirs and then I paid it off it 90 days. Win- win for all involved (well except the bank I guess)

Only thing people need to watch out for is how long you take paying things off. Taking out a huge loan and closing it in a month or two can actually hurt your credit report. Mostly you want to finance and pay off in at least 6 months time. Of course these are normally simple interest loans so go in and pay 95% off the first month and then pay the balance off over a few more months to avoid any concerns on the credit score. Also it often screws the dealerships over if you do this because many loans with banks require the note to exist for a minimum time before they get their full payout on the hold backs. Not often so if you do manufacture financing but common with banks. so if you pay off in 3-6 months they often don't get everything

You’re WRONG . The cash price and the finance price is the same. It’s a FEDERAL LAW.

wait when u finave thay cover lost keys ??

Will you have less hassel if you buy from a used car lot over a dealer that sell both new and used?

Agree bru!👌🤙

Good luck paying off that car loan early. They will find lots of fees, penalties and excuses to pay off the loan early.

Ok, so I'm needing to replace my family SUV (transmission just went out). I have 8k cash. Would it be better to purchase a newer lower mileage used SUV for 19-22k , trade in my current one, and finance the difference? Or purchase an older higher mileage SUV I can pay for outright? I feel like either way I'm just buying time. Older=2-3 years of use, newer 5-7? Suggestions?

You can pay cash, you just can't tell them until after you agree on a price.

I paid cash for my 2024 2SS 1LE, and they had no idea how I was paying up until the day my car arrived

You don’t tell them you’re paying cash until you agree on the price. That’s car buying 101

I prefer cash but I suppose that the best way to do that is not say a word about it until the end. When I had to finance I don’t think that I ever got taken. Now I might be wrong as you will probably tell me!

In the YEAR TWO THOUSAND!!!!!!

Any Conan O'Brien fans? Just me? Okay.

A whole lot of words to say just pay cash.

I always get pre-approved through my credit union, they always have better rates that what the dealer offers.

You must sell 3 cars a day if you only earn 2% net at 20k avg price will earn you about 400k a year

Are dealerships required to report the transaction to the IRS if its more than $10,000?