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Buying a Vehicle with Cash, Check or Credit Card

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Comments

  • epineyepiney Posts: 462
    I suppose, at the end of the day, it's like isell says, negotiate a better one, finance somewhere else or pay cash. All that should matter is if the rate is better than you can get elsewhere.

    The lease rate only mattered to me because I was comparing lease versus buy and I needed to break out the components. Monthly payment was meaningless to me, which is opposite for most buyers.
  • cccompsoncccompson Posts: 2,388
    No, my comments were directly solely at the original question - why is it necessary to review credit history on a cash transaction.

    A check or money order deal is not a cash transaction.
  • You want the dealership to take your check without a credit check?

    The sure fire way is to tell them you will be back tomorrow with a bag of cash. They HATE to see you walk out the door without a deal, Especially if you have already indicated you are a buyer and have the money.

    If they let you then just go get the cash and pay them or have the bank wire the cash into their bank.

    No one has to accept a check on your terms. You submit a check on their terms.
  • mackabeemackabee Posts: 4,709
    HuH? :confuse: You talking to me? Are you talking to me? How did my posts end up on this thread? :confuse: This is the first time I've been here. :confuse:
    Mackabee
  • tidestertidester Posts: 10,110
    This is the first time I've been here.

    Your messages were so full of wit and wisdom they we felt they should have more exposure in the appropriate topic! :shades:

    tidester, host
    SUVs and Smart Shopper
  • joel0622joel0622 Posts: 3,302
    Depends on the state you are in. There is allot of verbiage now on contracts that state the rate is negotiable. Also when a customer ask you if that is the best rate they can get and if you reply "yes" when you are in fact making reserve you can get in hot water.

    Here is my spiel on it when asked and I am making reserve.

    No Sir that is not the best rate I have available. The rate you are paying includes a mark up from the dealer which is where I make our money for doing the loan. The contract you are signing is a simple interest contract with no penalty for early pay off. If you are able to secure better financing feel free to refinance with that company.

    I do ask though that you do one of two things, either do it in the next couple of days prior to me sending your contract and title work in or please wait till your third payment. This gives the title time to be processed by the state and get to the bank so it is there when you pay it off, also that keeps me from being penalized for writing a loan that is serviced for less then 90 days. If you would do that I would thank you, my mortgage company would thank you, Bellsouth would thank you. :D
  • mattgg1mattgg1 Posts: 191
    nthe -

    What good is verifying my bank account if there is no money in the account to pay for the car? So the dealer sees that I have a bank account...but it's only got $8.00 in it when I write the check and take the car!

    Of course when a car is financed, the customer is allowed to take the car before the dealer officially receives the money. However, the dealer is getting paid from a bank that has approved the loan, and the dealer is 99.9% assured that they will get paid. It is just a matter of transferring funds to the dealer.

    With a cash buyer however, the dealer has no assurance that I will come up with the money. They are just holding my check, hoping that it will clear when they cash it.

    My point is, there is a hell of alot more security in getting your money from a bank vs. a holding a personal check from Joe Schmo -- knowing he does not currently have the money to pay for the car.
  • nthenthe Posts: 414
    "However, the dealer is getting paid from a bank that has approved the loan, and the dealer is 99.9% assured that they will get paid. It is just a matter of transferring funds to the dealer. "

    not true, i've seen plenty of deals where the once the bank got all the info, they decided they wanted more stuff from the customer, or they didn't like something they found.

    "With a cash buyer however, the dealer has no assurance that I will come up with the money. They are just holding my check, hoping that it will clear when they cash it. "

    we use a check guarantee service (like many other dealerships). if your check bounces, and we have all the info on the check that is required, then the check service company comes after you for the money, but they pay us first.
  • joel0622joel0622 Posts: 3,302
    not true, i've seen plenty of deals where the once the bank got all the info, they decided they wanted more stuff from the customer, or they didn't like something they found.

    Thats the rare exception not the norm. If it is the norm at your dealer then your F&I office needs to tighten up ALLOT
  • nthenthe Posts: 414
    "Thats the rare exception not the norm. If it is the norm at your dealer then your F&I office needs to tighten up ALLOT"

    well, its not normal (or at least i didn't mean to imply that it was). Most of the times its with credit challenged customers.
  • mattgg1mattgg1 Posts: 191
    nthe -

    Your argument doesn't make much sense. You said...

    "i've seen plenty of deals where the once the bank got all the info, they decided they wanted more stuff from the customer, or they didn't like something they found."

    Yet when another poster says "Thats the rare exception not the norm", you agree with him and say "it's not normal".

    Also, your reply mentions that the bank often wants more "stuff" or didn't "like" something. But you don't say those actions result in a dealer not receiving his money and having to repo the car.

    Therefore, I assume you actually agree with me that the "dealer is 99.9% assured that they will get paid" when dealing with a bank.
  • joel0622joel0622 Posts: 3,302
    If all information given by the customer is true and correct then you are guaranteed to get your money from a finance deal.

    The only time we run into trouble is when the customer is less then truthful with us. I.E over state there income, don't really have a job, write a bad check for down payment, etc.

    In 14 years of selling, desking, and working in F&I I can count on 1 hand the number of contracts I have had not cash. Every time it was because the customer lied to us. Now allot of that has to do with the fact we don't spot stupid deals. There has to be a reason before we deliver it.
  • moparbadmoparbad Posts: 3,842
    quote-
    Dang if we had the doc fees cover everything you all think it should we would have to raise it to about $1000. Everytime we talk about the cost of doing business one of you say

    "Shouldn't that be covered by those exorbitant document fees?"-end

    No Doc Fees. Yep, several dealers in my area do not charge document fees. It is very refreshing. :)

    There don't seem to be any complaints from customers and the dealers are thriving.

    To share my own experience I purchased a new car and wrote a personal check in 2006 with no credit app. required.
  • greanpea68greanpea68 Posts: 1,996
    The sure fire way is to tell them you will be back tomorrow with a bag of cash. They HATE to see you walk out the door without a deal, Especially if you have already indicated you are a buyer and have the money.

    I don'y have a problem letting someone do that. I just take a deposit for $1000. Put them thru F&I. That way if they buy anything when they come back with their check they will have the right amount of money. I'll have the car already to go. Take the rest of their money and transer plates. Win, win....

    It's another thing if someone is going thru their bank for a note and don't give us a chance. We can ussualy beat any bank rate plus it is a quicker transaction which makes me happy so I can move on the next person.
  • greanpea68greanpea68 Posts: 1,996
    My point is, there is a hell of alot more security in getting your money from a bank vs. a holding a personal check from Joe Schmo -- knowing he does not currently have the money to pay for the car.

    Most banks today won't disclose what you have in your bank account because of "Privacy Laws"

    If we are going to take a check for anything over $1500 we will do a credit check. If they are over a 700 then we will accept the check. Most people I know with that kind of score are not going risk their credit to try and steal a car. ;)
  • greanpea68greanpea68 Posts: 1,996
    not true, i've seen plenty of deals where the once the bank got all the info, they decided they wanted more stuff from the customer, or they didn't like something they found.


    That sounds like their were certain stips involved for the bank to approve the loan either more money or POI or POA.
    If the dealer is spotting risky credit customers than that is crazy. The only way I can see that happening is if they clubbing baby seals and even then I wouldn't want to do that untill I got a approval :lemon:
  • tidestertidester Posts: 10,110
    Most banks today won't disclose what you have in your bank account because of "Privacy Laws"

    I think it's been that way for a very long time.

    tidester, host
    SUVs and Smart Shopper
  • volvomaxvolvomax Posts: 5,274
    Some dealers just want to get the car on the street.
    They figure if they need to bump the customer later,the customer will pay rather than bring the car back.
    Not good business IMO.
  • steine13steine13 Posts: 2,411
    .. but on topic.

    I bought an '07 Vibe last week, for $17,5xx OTD. Since I have the GM Card, and since the dealer does not pay any fees when you use it, I was able to use the card to cover $13k of the total.

    That's a six-week 0% loan, and now I'm waiting for 0% balance transfer offers to cover it. If not, I'll have to dig it up elsewhere, but it makes "financing" quite easy.

    I just thought I'd mention it here. If anybody knows if the same game works with the Chase Subaru card; I'd love to know.

    -Mathias
  • greanpea68greanpea68 Posts: 1,996
    I think it's been that way for a very long time.

    I've found it more of a problem in the last two years were evrywhere I call I can't verify. That's why we'll run credit checks now. If they don't have a 700 or higher they have to get a certified bank check.
This discussion has been closed.