Why You Should Never Tell a Dealer You’re Paying Cash

By Gregg Fidan of Real Car Tips

Many car buyers assume they will get a better deal if they pay cash – this is definitely not true.

Saving up enough money to buy a car with cash is certainly more difficult than getting a loan, so people assume they should be rewarded for this achievement.

The reason it doesn’t work that way is because car dealers make money three different ways when you purchase a new car:

  1. The Sale of the Car
  2. The Financing
  3. The Trade-In

Most people know that dealers make a certain profit on the sale of the vehicle (and the trade-in if you have one), but what most don’t realize is that dealers sometimes make the bulk of their profit on the financing – by charging….read more