In the next few months I will be purchasing a 05 wrx. I'm just waiting on my refi money. I plan on using that money and pay cash upfront for this car. Do I have any bargaining power with the dealer if I pay cash?

Oy maybe I should finance a small portion and save my cash for upgrades? Subaru is offering low finance rates right now. hmmm. What do you guys think?

 

1- no. that has to be the biggest myth. i work at a dealer. we actually don't care. as long as the money is good.
but if you do use the banks that a dealer has contracts with- they make a small commision on the finance charge.

2- if you said you are waiting on "refi" money... do you mean something like a home equity loan? if so compare the rates and timeframe. my friend put his car on a home equity loan(which he has 10 years to pay at a very low interest rate.) but he'll pay it off sooner than that.



aloha from the summit of Mauna Kea

 

You'd be better off investing that money and getting another loan if you can. You can find something with a higher rate of return than the interest on the car loan then you'll be making money on the deal and you can put that towards paying back the refi.

 

Yeah, you're really not buying your car cash if you pay with refi-money. You might as well just try for a 10 year, interest only note in that case. Use the refi money to build some additional equity in to your home and make money off it.

 

I decided to refinance my house down to a 15yr loan from a 30. Since the rates are still low I was able to include a little extra for myself. Either a new car or little re-modeling of the house...or both. Instead of paying interest on both my mortgage and a car loan I thought it would be best to combine it into one. I pay about the same or less than before.

 

Hey cuz, whats gong on? No I have not bought it yet, but when I do....it will be time to fix up the ole type-s .....that is if you want to keep up.....hahaha...I already have my upgrade plans...now I need the car.

 

You may get a tax advantage with an equity loan. Depending on your tax bracket, this could be worth talking to a CPA/tax attorney about. If you can borrow enough for the Subie and have some more to invest at 6.0 or so, you can use the interest against taxes and the income to pay back some of the loan, with not a lot of new tax liability. Hope you have a friendly professional advisor for the taxes, the investments and the loan. Good luck!

 

Buy American! Just kidding.