Tip #3
They say cash is king, but when it comes to buying new cars, it isn't, or at least the dealers don't see it that way. They hate cash buyers because they make little profit on car sales compared to financing (Now, I'm all for being debt-free and actually owning your car, not the bank or the manufacturer). Because of this, NEVER tell the dealership you’re paying cash. Because when you do, the price of the car just shot up because now they know they can't make money off of financing, and you’re less likely to purchase things like bumper-to-bumper warranties, wheel-and-tire packages, etc., so they will try to make as much money off the car's price.
Car salespeople will ask how you’re paying for the car to try to figure out how to structure their deal. In the past, I thought I was being smart by telling the salesman that I didn't want to disclose how I was paying for the car until we agreed to an OTD price. But all that ever did was drive up the car's price because they suspected I was going to pay cash, and ended up wasting my time. To make things easier and simpler, now I just tell them I'm financing. That way, I get the best deal, I can pay the car off a week or two later once the payment option is set up, and only pay a few dollars in interest, and the slimy dealership doesn't get a kickback. To pay as little interest as possible, I put down as much as I can, except the minimum allowed to finance, and then pay the car off a week later. I also put as much down as the dealer will allow with a cashback credit card, without charging a fee (usually about $3,000 or $3,500), and pay it back before the due date. That way I can earn cash back, so I basically pay myself back for the little interest I will pay, plus some. I'm not encouraging anyone to get a credit card, and please don't spend money on one you can't pay back before the due date. But if you already have a cashback credit card and use it responsibly, you can use it to your advantage. If you decide to go this route, be sure to ask whether there's a prepayment penalty for paying off the car early. If there is, don't finance it if you want to pay it off early.
If you don't want to be in debt, even for a week, I get it. I don't like it either. But know, if you pay cash, you will more than likely overpay for it. But do your research on what people are paying for the car you want in your market, and negotiate a better deal. Knowing the invoice price helps, too.