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Buying new car cash: Dealer wants a credit check/financing application?

K4fxd

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But today the short term interest rate yield is too rich to not take a 0% offer and bank the interest.
I get that too, but I hate being a slave to payments. Even if they are automatic.

Then again it depends on how much I'd make from intrest. If I can net 1000 or more I'd do it. Any less and I'd just as soon own it.
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K4fxd

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I really think it s got more to do with a paper trail on a large cash transaction and identifying you with the most information, I m sure they have reporting rules they must abide by when taking in cash, just my guess.
The paper trail is from your bank to the dealer to the car. No reporting necessary for the dealer. The bank on the other hand will have to report it.
 

oregongt350

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I'm negotiating the purchase of a new 2023 GT. The dealer is in a neighboring state.

I told the dealer I'd be paying cash. He said he'd need to do a financing application. I asked why I'd need to do one if I am paying the entire price of the vehicle with cash.

His response was that he needed one to "prove that I'm the one spending the money." This sounds like BS to me....

How the hell would a financing application prove that "I'm the one spending the money"? Wouldn't the check from me be proof of that?

Is this just a ploy to talk to me into f&cking me with some dealer financing?

Lets see 0% financing on a new car, take the ~~40 grand and make 8% somewhere else. This whole idea of 0 debt is over hyped. Money can be a tool if its seen that way.
 

cerbomark

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yea, I just ran numbers on a $35K loan at zero interest for 2 years and then a 5% CD and you ll come out almost $2K ahead .
 

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cerbomark

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so this doesn t turn into 10 pages of nothing, call the dealer, speak to the manager of the dealership, tell them you want to car , have the money and will not consent to a credit app...
done in two minutes.
FYI/. don t forget , if they knew you would not finance when you negotiated they probably held back their finance money already.
 

XFactor7889

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I'm negotiating the purchase of a new 2023 GT. The dealer is in a neighboring state.

I told the dealer I'd be paying cash. He said he'd need to do a financing application. I asked why I'd need to do one if I am paying the entire price of the vehicle with cash.

His response was that he needed one to "prove that I'm the one spending the money." This sounds like BS to me....

How the hell would a financing application prove that "I'm the one spending the money"? Wouldn't the check from me be proof of that?

Is this just a ploy to talk to me into f&cking me with some dealer financing?
Sounds like a financing sales tactic to me. I just bought mine with cash back in February. Once I told them I'd be paying cash, that was that. No more talk of financing whatsoever.
 

PhillyMike

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Nearly risk free money market is just around 5% right now. Even assuming a drop in yield in next few years (slope 5% to 2% over 3 years) for a 45K car the 0/36 is worth >$2500..
 

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Oakley

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I'm negotiating the purchase of a new 2023 GT. The dealer is in a neighboring state.

I told the dealer I'd be paying cash. He said he'd need to do a financing application. I asked why I'd need to do one if I am paying the entire price of the vehicle with cash.

His response was that he needed one to "prove that I'm the one spending the money." This sounds like BS to me....

How the hell would a financing application prove that "I'm the one spending the money"? Wouldn't the check from me be proof of that?

Is this just a ploy to talk to me into f&cking me with some dealer financing?
you should let them do it and say you changed your mind to restart negotiations.
paying cash doesn't get you what you think it should. they make money in financing so if they think you are financing all of it they will come down more than if you are paying cash.

car dealer are crooked, treat them accordingly.
 

Call_Me_Bruce

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The dealer needs to run you through FINCEN. The Credit App maybe the form they use to collect the data. A quick call to the dealer and ask why they need your credit info.

Also, by disclosing you are paying cash you are potentially hurting yourself. Dealer's make money on the financing. If they don't make it there, they'll make it on the price of the car. Don't ever tell a dealer you are paying cash. Negotiate the price down as low as you can get it, take their financing and immediately pay the loan off. Make sure the loan has no pre-payment penalties.
 

monte87

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I bought mine bank check and no problems, never asked me anything.
Ant
 
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oguruma

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The dealer needs to run you through FINCEN. The Credit App maybe the form they use to collect the data. A quick call to the dealer and ask why they need your credit info.

Also, by disclosing you are paying cash you are potentially hurting yourself. Dealer's make money on the financing. If they don't make it there, they'll make it on the price of the car. Don't ever tell a dealer you are paying cash. Negotiate the price down as low as you can get it, take their financing and immediately pay the loan off. Make sure the loan has no pre-payment penalties.
There's no real way for me to get the deal done without telling them I'm paying cash. I'll be buying this from an out-of-state dealer and having it shipped.
 

Oakley

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I bought mine bank check and no problems, never asked me anything.
Ant
2 questions:
1. did they know that would happen from the get go?
2. did you pay several thousand under MSRP?

i suspect no is the answer to at least one of those questions.
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