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In the end if the credit situation doesnt get fixed then we are in for a hard time. I have a friend who owns a GM dealership and they are getting killed, not becuase of the gas prices (they sell mostly suv' and full size trucks) But because no one can get credit.
Isn't loan origination where most dealerships make their money I know when I bought my new truk last year none of the dealerships I talked to were happy when I told them I was paying cash.
Dealers dont make money on loans, they dont give loans. Basically they get short term loans from banks to buy their inventory from what ever car manufacturer they represent. The longer the car sits on the lot the more they pay in interest on the loan and their profit margin goes down. Cash usually means someone is going to get a much better price than if the dealer negotiates a loan for them…Cash talks, BS walks that kind of thing. In a nutshell: get a loan you pay full, or close to full price. Pay with cash you can get them down lower because they wont let a sale slip away just becuse you pay cash.One trick is to find out if you can how long the car has been on the lot (refered to as lot rot if it's been there 60 to 90 days) They have paid a ton of interest on this car and will be desperate to deal…otherwise it goes to the auction where they will most likely take a loss.
I paid cash cause I don't like owing people money. The secret of my success, stay out of debt. I only have one note and that is for a house and it will be paid for in ten years. If I had the liquidity I would have paid cash for the house too, as it is, I had to finance half which I hate.
