Pay for Sky options

[SkyHope]

Does it matter to a Saturn dealer how a buyer pays for their vehicle? (I assume the initial purchase price is a constant no matter the manner of payment).

Would a Saturn dealer accept a credit card for all or part of the purchase price? I'm wondering if it would be smart to charge. I'd be able to pay it off before interest hits.

Or does paying cash have an advantage for me or for the dealer?

I'll talk to our dealer once our Sky is on the way to us. In the meantime, thanks to anyone who can shed some light on my questions.

[richmcc]

Originally Posted by SkyHope

Does it matter to a Saturn dealer how a buyer pays for their vehicle? (I assume the initial purchase price is a constant no matter the manner of payment).

Would a Saturn dealer accept a credit card for all or part of the purchase price? I'm wondering if it would be smart to charge. I'd be able to pay it off before interest hits.

Or does paying cash have an advantage for me or for the dealer?

I'll talk to our dealer once our Sky is on the way to us. In the meantime, thanks to anyone who can shed some light on my questions.

Credit cars usually charge the retailer a percentage, other than that I don't know.

[CdnSkyGuy]

A dealership won't let you use the credit card for the whole purchase. The Credit card company charged the dealer a percentage.

Cash is best for you...

The Dealership gets a kickback from the bank when you finance the vehicle through the dealership. so financing is the best for the dealership.

[Stu's Sky]

Not only that, the interest rate you pay at the dealership is usually slightly higher than the bank's buy rate. Just like a mortgage, the finance person earns a commission for getting you the loan. The commission is well deserved, since they did get you the loan and put some work to it. But, it is a fact that you will probably get a better rate by getting your own loan (if your credit is good)

[skyguy85]

Working in the real estate business, I am VERY framiliar to kickbacks on from financial instututions. On mortgages they are referred to as 'rebate', but they are really calles 'yeild spread premium', not sure if its the same thing for a car loan. You can ask the dealer if the rate you get is 'at par' meaning the ACTUAL rate you qualify for.

Example:

If you buy a house and they tell you 7% you might say great! and take the loan. However it is almost always that you can get a better rate. You probably are actually qualified for 6.75 or 6.5 or even 6. If you can get 6, and the loan company tells you 7, then they get the other 1% from the bank.

I bet it's the same way with cars. I will have to ask my dad about that, since he's a fanance manager for a Kia dealership.

[Carnut]

Originally Posted by skyguy85

Working in the real estate business, I am VERY framiliar to kickbacks on from financial instututions. On mortgages they are referred to as 'rebate', but they are really calles 'yeild spread premium', not sure if its the same thing for a car loan. You can ask the dealer if the rate you get is 'at par' meaning the ACTUAL rate you qualify for.

Example:

If you buy a house and they tell you 7% you might say great! and take the loan. However it is almost always that you can get a better rate. You probably are actually qualified for 6.75 or 6.5 or even 6. If you can get 6, and the loan company tells you 7, then they get the other 1% from the bank.

I bet it's the same way with cars. I will have to ask my dad about that, since he's a fanance manager for a Kia dealership.

Thanks for educating me about loans.
I'l be better prepared to negogiate now....

[Rick Tinley Park]

Originally Posted by SkyHope

Does it matter to a Saturn dealer how a buyer pays for their vehicle? (I assume the initial purchase price is a constant no matter the manner of payment).

Would a Saturn dealer accept a credit card for all or part of the purchase price? I'm wondering if it would be smart to charge. I'd be able to pay it off before interest hits.

Or does paying cash have an advantage for me or for the dealer?

I'll talk to our dealer once our Sky is on the way to us. In the meantime, thanks to anyone who can shed some light on my questions.

Say the final bill is 26000. That is what the price ice is. On a cash deal that is what the dealer gets. If you financed through say your credit union (or any private way) as give him/her a check for 26000, that is still what they get. If, however, you finance then they get the 26000 and a part of the finance charge. So, in a way it is more lucrative for them to finance you than sell to you in any other manner. However, when they finance there is a bit more initial paperwork, but believe me the $$ they get makes up for it.
So, in effect, all sales are cash as far as the dealer goes -- they get a check for 26000 no matter.