[schooner]

The only thing I would add, if you are looking to finance, be sure to compare the total cost of borrowing between the banks and the dealer.

On new vehicles, most dealers can destroy the bank rates (0%, 1% financing). However, if you finance with a bank you are seen as a "cash" buyer to the dealer (ie you have the cash in hand). And it is very hard for a dealer to walk away from a cash ready buyer. So they are much more likely to haggle. They dont want to lose the sale.

They might offer you a much bigger discount that will overcome the higher rate paid on financing. It wont always be to your advantage but it is worth crunching the numbers.

Edit: Just for fun, I ran some numbers. Assuming $30,000 over 5 years.

1% - $769.80 in interest over the term
2% - $1551.60
3% - $2346.60
4% - $3153.60
5% - $3972.60

So lets say they vehicle is $30,000 and the dealer is offering 4% on financing, but they will knock it down $2000 as you have cash in hand and dont want to lose the sale, and you are borrowing at 5% from the bank, you come out ahead. (Not a perfect calculation but close)