Large deposit to get larger discount…?

[stealthall]

Does anyone know if putting down a larger deposit…$5k, $10K, etc may allow for additional negotiation off MSRP?

 

[Bill 1960]

Not likely. Finance is where most of the money is made. Dealers don’t really want your ca$h, they want you financed to the hilt with the bank of their choice.

 

[Banks22]

Bill 1960 is correct, I think your required to put a minimum 8% down, so that’s what they would probably prefer with 72-84 month financing

 

[BTSRT]

All depends on credit and banks. You may not have to put anything down, even at 72 -84 month.

 

[100cars]

Does anyone know if putting down a larger deposit…$5k, $10K, etc may allow for additional negotiation off MSRP?

Most likely the opposite would be true - i.e. no money down would get you a better deal if you finance with the dealer. But with the market the way it is now, good luck getting any discount. All these vehicles are coming to dealers pre-sold at MSRP from what I've heard.

 

[Bill 1960]

It is an ever changing dynamic how to get the best deal, because incentives, markets, and competitors are ever evolving. What often works is take an incentive (rebate or reduced price) conditional on captive financing. Then turn around after delivery and use that cash you have stockpiled to refinance at your credit union or wherever you get the best rate.

Be sure there’s no prepayment penalty on any loan you sign. Laws in a lot of jurisdictions prohibit prepayment penalties, but I’m not a lawyer. I don’t even stay at a Holiday Inn.

 

[Dez78n]

Omg... Do people really finance their cars for 7 years??? That seems crazy to me. By the time I'd be done with paying on it, it would have 175k miles on it.

 

[Jeremie]

If the rate is really good, there's no reason not to finance for the maximum length of time (1% or better). It's essentially free money that you can otherwise invest. That said, if there are cash incentives that you can't also get while financing, that would often be a better deal.

 

[Bill 1960]

If the rate is really good, there's no reason not to finance for the maximum length of time (1% or better). It's essentially free money that you can otherwise invest. That said, if there are cash incentives that you can't also get while financing, that would often be a better deal.

That’s a fact. I can’t tell you how many times on the RV forums I read accounts of people bragging about paying cash for an expensive RV. SMH. It’s no accident that public education does a terrible job teaching people about finance.

Borrowing money is actually a reasonable method of hedging against inflation - something that may be of keen interest in these times. Borrow today’s dollar and repay with tomorrow’s.

Don’t get me wrong, I do not advocate buying anything you’re not able to afford and preferably pay cash for. But don’t. Use Other People’s Money (OPM) when it’s offered cheap and invest YOUR money in appreciating assets.

 

[Banks22]

I do the max length finance with the lowest rate and always pay off sooner.

 

[Doubeleive]

the only way you may get a discount is paying cash in full and haggle. it's an art form. Otherwise get the best financing you can get and pay the Principal down as fast as you can
this leaves you money in your pocket, interest rates are pretty low right now, like others said use other peoples money.
this tracker is even wrong I will have this paid off by April if not sooner

 

[stealthall]

Speaking of which…financing. What are some good (not propriety to your town or military) banks/CU where you have recently seen good rates and terms?

I found Bethpage FCU a couple years ago that is pretty good and in NC we have Coastal CU which is competitive….any others that the general public can get access to?

 

[Stbentoak]

the only way you may get a discount is paying cash in full and haggle. it's an art form.
View attachment 343395

Sorry.... not on these vehicles.... The only thing cash got me was out of the F&I office in 10 min. No one gave a flip I was paying cash at my dealer pricewise.... Not when they had 4 other calls w/in 2 hours on the same vehicle I bought, and the sales guy had to tell them it was sold already.....