Quote:
Originally Posted by Calgary14
If I’m reading that correctly it’s actually better to finance a vehicle then pay it off almost immediately. The dealer would have an incentive (commission?) to provide financing and would be more likely to give a better price if financed - am I right?
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Things are being skewed here between new and used purchases. On a used car the dealers prefer you finance, negotiate the best price you can and leave it open as to if you are financing or not.
On the new side, there are always cash purchase rebates which will make your cash purchase price less then a subvented (0%/ .9%/ 1.49% etc..) finance purchase. Buying new and used are quite a bit different in terms of cost and savings.
Dealers can also grossly inflate the trade values buy burrying them in undisclosed factory rebates on new vehicles. Working at a full disclosure dealership, this really comes back to bite us. "Ford is giving me more for my trade". Yeah because they are not telling you about the $3500 rebate from Ford Canada but are simply adding $2000 to your trade, guess what, you are missing out on $1500 even though they "are giving you more for your trade". There's the ACV (Actual Cash Value) of your trade and there is what they are showing you for your trade, these numbers can be twisted and turned every which way to close a deal.