When people pay cash for a car..

[gf1723]

..do some of you guys/gals really mean walking in there with a rubber-band of $100 bills? Or do most of you actually just write out a check and wait for it to clear? Just curious, I think it would be fun to walk in there with that much money and put it down on counter, point and say, "I want that one, please!"

Of course I would probably wear a suit to make it look like I was some young kid who just hit it big in Vegas.

[MonkeyMama]

For all the cars I paid *cash* for - it was by check. I don't feel comfortable walking around with wads of cash. I never deal in cold hard cash, myself. I am lucky if I have more than $10 on me at any given time.

Of course, outside of a private party exchange, we usually put a chunk on our credit card too (for the rewards). & pay it off immediately, of course.

P.S. From my experience, they look at you like you are insane to write a check, any way. I don't get the impression that many people do. & I have never spent more than $12k-ish on a car. But, they kind of look at you like you rolled in with wads of cash, when you refuse the financing. You'd get a similar reaction, either way. Of course, haven't bought a vehicle since I was in my 20s - youth kind of adds to the shock factor I guess?

[GREENBACK]

Just for kicks Maybe you could bring in a wheel barrow of rolled quarters I bought a car a year ago with my debit card. It's like buying anything if you have the cash.

[gf1723]

Originally Posted by GREENBACK

Just for kicks Maybe you could bring in a wheel barrow of rolled quarters

Haha, now that would be interesting to see.

[disneysteve]

We paid for our last car with a combination of a check from our insurance company, a personal check that we wrote and some actual cash.

[maat55]

Our last car we paid 9k in cash and 9k with check.

[ESPwaterproducts]

Are you sure it was shock and not excitement?

[maat55]

Originally Posted by gf1723

..do some of you guys/gals really mean walking in there with a rubber-band of $100 bills? Or do most of you actually just write out a check and wait for it to clear? Just curious, I think it would be fun to walk in there with that much money and put it down on counter, point and say, "I want that one, please!"

Of course I would probably wear a suit to make it look like I was some young kid who just hit it big in Vegas.

Maybe you should deal for a lower price first.

[disneysteve]

The last time we bought a car, they did check my credit first even though we were going to be paying cash. The reason they did that was because we were going to be taking the car home that day with nothing down as we were waiting on an insurance check. When the salesman came back out after checking my credit, he said, "Are you sure you wouldn't like two or three cars?"

I don't care what Dave Ramsey says. Having an 800+ credit score can be beneficial in life even if you aren't borrowing money.

[maat55]

Originally Posted by disneysteve

I don't care what Dave Ramsey says. Having an 800+ credit score can be beneficial in life even if you aren't borrowing money.

True, but should it be? I really do not understand what it has to do with getting cheaper rates on insurance, but I can see where it gives some indication of trustworthiness.

[dfeucht]

Originally Posted by maat55

True, but should it be? I really do not understand what it has to do with getting cheaper rates on insurance, but I can see where it gives some indication of trustworthiness.

You get a cheaper rate on insurance with higher credit scores because data shows that higher credit scores are better risks.

Same reason age 25+ gets better rates than under 25, etc.

Obviously not everyone under 25 is a worse driver than all drivers over 25 and the same holds true with different credit scores, but if the states allow it to be rated for (you can't rate for race, religion, sexual orientation, even if the data showed different risks).

If they didn't rate that way those with lower credit scores would have lower insurance rates, but those with higher credit scores would end up with higher rates as the risk would have to spread across a broader group.

[MonkeyMama]

Originally Posted by ESPwaterproducts

Are you sure it was shock and not excitement?

Are you referring to my post?

Most definitely. Dealers do NOT like cash buyers. Well, they didn't the last 2 times we bought (2001 and 2006).

Not excitement - some refused our business because they couldn't talk us into borrowing more. Though they had many cars in our cash price range... Some sales people just got really frustrated with us.

I hear cash buys you a little more leverage these days.

[KTP]

Originally Posted by gf1723

..do some of you guys/gals really mean walking in there with a rubber-band of $100 bills? Or do most of you actually just write out a check and wait for it to clear? Just curious, I think it would be fun to walk in there with that much money and put it down on counter, point and say, "I want that one, please!"

Of course I would probably wear a suit to make it look like I was some young kid who just hit it big in Vegas.

We paid cash for our tundra pickup. I think they really rather you finance it though because the dealer kept pushing us toward that route. They must make a tidy sum in kickbacks from the finance company. They also really push the paint/seat protection and extended warranty. I solved all of that problem by having the cashier check already made out with the amount I wanted to pay and told them they were welcome to throw on any extras but all they were getting was the amount already on the check.

[dczech09]

LOL I love it! I would love to go to a dealer some day with a wad of cash to buy a car. It won't be for awhile cuz my car will live forever and I will drive it til it dies. That would be so much fun to see how they react and how they try to switch me.

I would just tell them "Look, if you mention financing one more time, I am going to take my business elsewhere." I could only imagine the reaction

[GREENBACK]

I'm not sure what dealer's get from the banks they work with but it is clearly significant. I've always been pushed to finance by the dealer and they have a specific list of banks to choose from based on your situation. I hate being "played" like that.

[seen]

Well now I'm embarrassed.

Back when I was considering buying from a dealer I went up to the salesman and asked him how much more of a discount I could get if I paid in cash. I see now why he said nothing at all.

[TheMom]

The first car we paid in cash, we just wrote a personal check. The dealer for the 2nd one wanted a cashier's check. That time not only did the dealer want us to finance, but the bank wanted to loan us the money instead.

Definitely no extra discounts for paying cash, but often the deals on new are a rebate OR a lower finance rate, so I feel we got a slightly better price than had we financed.

[maat55]

Originally Posted by dfeucht

You get a cheaper rate on insurance with higher credit scores because data shows that higher credit scores are better risks.

Same reason age 25+ gets better rates than under 25, etc.

Obviously not everyone under 25 is a worse driver than all drivers over 25 and the same holds true with different credit scores, but if the states allow it to be rated for (you can't rate for race, religion, sexual orientation, even if the data showed different risks).

If they didn't rate that way those with lower credit scores would have lower insurance rates, but those with higher credit scores would end up with higher rates as the risk would have to spread across a broader group.

I do not buy this argument. Driving and financial habbits have nothing in common.

[rj.phila]

Originally Posted by maat55

Our last car we paid 9k in cash and 9k with check.

Smart move .

[bjl584]

Originally Posted by gf1723

..do some of you guys/gals really mean walking in there with a rubber-band of $100 bills? Or do most of you actually just write out a check and wait for it to clear? Just curious, I think it would be fun to walk in there with that much money and put it down on counter, point and say, "I want that one, please!"

Of course I would probably wear a suit to make it look like I was some young kid who just hit it big in Vegas.

I wrote a check. The salesman was a bit taken back that I didn't want to discuss financing options as I was pulling out my pen and checkbook.