Re: [ST] Cash purchasers

[Nathan Maher <nate@xxxxxxxxxx>]

Sometimes the dealer does have your best interests in mind when offering 
financing options (note, I said *sometimes*).  Example, large car dealers 
often purchase loans in bulk and can therefore get lower interest rates. 
  Granted, they still mark these rates up so that they quite literally 
profit from your loan but in most cases these rates will be lower than if 
you went to the same bank and asked for the same loan.  I actually tried 
this recently, the dealer could offer me a loan through my bank that was 
two percentage points lower!  I called my bank and they actually 
explained the process to me in a pretty transparent manner, I was a bit 
shocked by this.  It is worth noting that I was able to beat both of them 
by using a local credit union.  I don't think I'll ever use anyone else 
for a vehicle loan.

One other finance-related tidbit for anyone who might not know: dealers 
will often not let you pay for vehicles via credit card (even if your 
limit is high enough) because they pay a percentage fee.  It's worth it 
for them to take a down-payment via CC but not pay a fee on the whole 
deal if they aren't handling the financing.

Nate
00SprintRS


Tom Fraser wrote:
> They prefer a financing arrangement as they usually get a small kickback from the company making the loan.  This means that they lose out on a little income if they have a cash sale.  I learned this when I used to work at a bank as a repo/collector.  Hated that job and quit in less than a year.
> 
> Tom
> 
> 
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