benefits from buying ms3 off the dealer cash.
- Thread starter kato1337
- Start date
protege5_dude
Member
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- Mazda Protege5
interest?...lol
lol and lots of interest,cash is the way to go
protege5_dude
Member
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- Mazda Protege5
goto sleep.
gogogomoveit
Member
you save a huge amount of interest. Over 60 months you are talking about at least 4000 dollars at 6% rate on a 23K car. Also cash has a big leverage for you negotiating with the dealer. Instead of having payments from the bank, they would rather have a big lump sum with a small reduction. You will get a better price.
Since you asked such a question, you probably should do a little more research on your own and Do your math. If you can afford to mobilize 26K cash for a car, definitely do that.
Since you asked such a question, you probably should do a little more research on your own and Do your math. If you can afford to mobilize 26K cash for a car, definitely do that.
protege5_dude
Member
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- Mazda Protege5
(werd)
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- 2002 Honda S2000
if you spend 10k or more in cash at the dealership the transaction will be reported to the IRS. just a consideration depending upon your relationship/standing with those guys...
gogogomoveit
Member
I wish i have 24K cash when i bought mine. I brought the price down from 24K down to 21.8K just by talking. If I get the cash, damn I can walk out with 21K for sure! (dance)
Well as long as you are not money laundering, i guess no worries?
protege5_dude
Member
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- Mazda Protege5
i wish i could even afford a MS3. The military doesnt pay as good as people think. lol
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- 2002 Honda S2000
if you owe money to the IRS, are behind on filing, don't claim all of your income, etc. it sends a big red flag. no idea what the OP has going on, it's just a heads up.
gogogomoveit
Member
good info.
This is actually a complete misconception from the "old days" and is flat out WRONG. I worked as a Sales Consultant for nearly 3 years at a Mercedes-Benz dealership. Hand over fist we would rather you FINANCE vs. pay cash for a vehicle. We get EFT'd from the bank as soon as a contract is funded (ie: signed by you the customer and then submitted) JUST LIKE CASH...and sometimes (not always) we can make money on the "back-end" by financing with an external financial institution. In fact, some auto manufacturer's have objectives of having a certain # of contracts needing to be funded through their captive finance company (for example: Mercedes-Benz Financial) to obtain performance incentive money. That is the real story from someone that just got out of the business
.BTW, they are 100% correct on the IRS info. It doesnt even have to be exactly $10k or over...if its close to that # depending on the dealership/office manager, if they "suspect" anything or have any reason to fill out the cash reporting form, they most definitely can do so!
I agree that in my experience with dealers, they are much more interested in having you finance the car than pay for it outright. They stand to make more money when their financial branch is involved.
Of course, they also like to try to confuse you with monthly payment numbers instead of the actual amount. Paying cash will definitely alleviate this!
Of course, they also like to try to confuse you with monthly payment numbers instead of the actual amount. Paying cash will definitely alleviate this!
coololddude
Member
The Dealers will be happy to sell the car anyway they can. The more ways you give them to screw you, the happier they are!
Thanks for the info. I have never had any problems with IRS. Im going to try to look into more info about paying for the car cash i assumed the dealer would be happy to take my money out of my hand hmm learned new things.. finance maybe an option then.. in a way it will help my credit? also it will be my first new car to btw! and dont really want to have any payments too
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- 2002 Honda S2000
building your credit never hurts. you could put down 60-80%, finance the rest, and have very small payments. as long as you are responsible to pay on time each month it will only help you. if you ever get sick of payments/interest you can just pay off the remainder whenever you like. just make sure there is no pre-payment penalty. usually isn't...
Good point thanks! ill keep that in mind because i really dont have much credit history and maybe this will help me out then.
gogogomoveit
Member
This is actually a complete misconception from the "old days" and is flat out WRONG. I worked as a Sales Consultant for nearly 3 years at a Mercedes-Benz dealership. Hand over fist we would rather you FINANCE vs. pay cash for a vehicle. We get EFT'd from the bank as soon as a contract is funded (ie: signed by you the customer and then submitted) JUST LIKE CASH...and sometimes (not always) we can make money on the "back-end" by financing with an external financial institution. In fact, some auto manufacturer's have objectives of having a certain # of contracts needing to be funded through their captive finance company (for example: Mercedes-Benz Financial) to obtain performance incentive money. That is the real story from someone that just got out of the business
Learned something new today! I stand corrected.
But then the savings off interest is still valid.
Hi new here thought id put my 2 cents in... go to edmunds.com get the 5 dealer quotes for your area. i paid almost 2k under sticker and 3k of in person quote. i went up there i was told since the ms3 was such a high demand car that there was a 1500 markup.. i said ok .. walked away did my quotes got a quote from same dealer for 3k less then what he quoted me just a week before
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- '16 CX-9, '19 GTI
With respect to your original post, if you can get a decent APR, then financing is preferable. The opportunity cost of paying cash is more than offset by preserving your cash for investment.
