Buying with a very large down payment

razingkane93

I’m planning on buying a white 2014 Accord Touring in the next 15-20 days. I can pay cash but I think I’ll put $25,000 down and get a 24 month loan, via my credit union. What should my plan of attack be with this scenario? I know not to tell the dealer of my payment plan until I have agreed to an OTD price but what should I consider a good price to start at? There a no Touring trims in my area so having the dealer find one for me is also going to have to figure into this deal.

MarkHolthoff

I would suggest locating the one you want via an inventory search tool and then emailing the Internet manager at the dealership that has the car and asking for his/her best price. You can then compare that to TMV and/or Price Promise (if available).

You're right that you shouldn't be talking about how you are going to pay for the car until you have finalized the terms of the deal.

Feel free to post your deal terms here, and we will let you know what we think and how they compare to average.

isellhondas

Concealing your payment plan from the dealer will accomplish nothing in your favor.

Let me ask you...do you REALLY have to have a Touring? The differences are of little value and the price of the Touring is much higher.

For this reason, they don't sell very well so many of the stores don't order any.

You will ALWAYS get a better deal on an in stock car than on a car a dealer has to locate and dealer trade for.

If you insist on buying a Touring, you will NOT be in a position of strength and the dealer knows that.

razingkane93

@isellhondas said:
Concealing your payment plan from the dealer will accomplish nothing in your favor.

Let me ask you...do you REALLY have to have a Touring? The differences are of little value and the price of the Touring is much higher.

For this reason, they don't sell very well so many of the stores don't order any.

You will ALWAYS get a better deal on an in stock car than on a car a dealer has to locate and dealer trade for.

If you insist on buying a Touring, you will NOT be in a position of strength and the dealer knows that.

Good point on the wanting the Touring, I can accept an Accord EX-L V6 sedan. The last time I bought a car new was in 1999 when I bought my current Accord EX 4cyl 5spd which now has 200,000 miles.

razingkane93

@Mark@Edmunds said:
I would suggest locating the one you want via an inventory search tool and then emailing the Internet manager at the dealership that has the car and asking for his/her best price. You can then compare that to TMV and/or Price Promise (if available).

You're right that you shouldn't be talking about how you are going to pay for the car until you have finalized the terms of the deal.

Feel free to post your deal terms here, and we will let you know what we think and how they compare to average.

Do you think a very large down payment helps or hurts my car buying?

stockdox

I see absolutely no reason to put a large down payment like that unless there is a concern about your credit. I took the Honda .9 percent financing as a great deal. When I negotiated the deal, I did let the dealer know I was already pre-qualified with Chase and had a FICO score north of 800. That would matter more to them then your down. Dealers do not want to waste their time negotiating prices with someone who can't pay. They never asked how much I was putting down or how much I could afford and I never told them.

razingkane93

@stockdox said:
I see absolutely no reason to put a large down payment like that unless there is a concern about your credit. I took the Honda .9 percent financing as a great deal. When I negotiated the deal, I did let the dealer know I was already pre-qualified with Chase and had a FICO score north of 800. That would matter more to them then your down. Dealers do not want to waste their time negotiating prices with someone who can't pay. They never asked how much I was putting down or how much I could afford and I never told them.

When I bought my 1999 Accord it was on a 60 month payment plan. Then life got difficult and my credit took a beating which took years to get it back up to where it is now. So now I'm buying a car with cash and I will walk out the door without a car payment or I can put a large amount down get little 24 month payment which keeps my credit steady and high. Either way works for me. I'll never do the long term car payment plan again.

kyfdx

@stockdox said:
I see absolutely no reason to put a large down payment like that unless there is a concern about your credit. I took the Honda .9 percent financing as a great deal. When I negotiated the deal, I did let the dealer know I was already pre-qualified with Chase and had a FICO score north of 800. That would matter more to them then your down. Dealers do not want to waste their time negotiating prices with someone who can't pay. They never asked how much I was putting down or how much I could afford and I never told them.

If you bring your own financing or pay cash, the dealer gets a $1000 incentive from Honda, which could net you a lower selling price.

isellhondas

The size of your down payment means nothing to a dealer.