Acquaintance wants new 2023 RX350. Dealer financing or he pays cash?

Is it best to get dealer financing so the dealer is more willing to negotiate price?
Then pay off the loan immediately?

Thank you.

Good luck dealing on a 2023 RX350, new model, high demand, low supplies. As for a loan, make SURE there are not pre-payment penalties.

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Why don’t you find out for yourself ? Not all dealers operate the same way .

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Your title says acquaintance.
Did he/she ask for your advice?
If not, offer none.

And if they did, suggest they google ‘how to buy a new car’.


Why would anyone want advice from RG ?


If I asked a friend who is into cars and they told me to google ‘how to buy a new car’ I would not consider that reply very friendly or helpful, honestly.

Being into cars does not a financial advisor make.

Jim , I guess you have never had the saying " No good dead goes unpunished " .

Jim , I guess you have never had the saying " No good dead goes unpunished " .

Yes, I’m aware of that perspective, but if I had that attitude I think I would not be much of a friend most of the time. I’m new to this community, but already in the first few minutes I am struck by the frequency of various people apparently not trying to be that helpful in their replies. (I’m not singling out any individual person, and I haven’t even noted which users made which comments. This is just a general sense of several different replies.) Maybe thatlcomes from experiences that I haven’t had yet. I’m not judging anyone, just trying to understand things around here. When I signed up a few minutes ago I was presented with some guidelines that sounded much more ideal than what I’m seeing in reality.

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Salesmen make money on financing. They will cut a better deal if the buyer says they are financing. As long as there are no fees to set up the loan, finance it and pay it off in a few months.

If the car comes from CarMax, it doesn’t matter. Their salemen aren’t on commission.

That’s not always the case. After we established the bottom-line price on my new car (after deducting the value of my trade-in and adding the sales tax), I was asked how I wanted to pay for it. I realize that this is probably not typical, but it does happen at some dealerships.

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No friend involved here.

And there are good web sites with lots of information. I am far from an expert on car buying, just like most people.

I stick by my advice.

I may be wrong…but if you finance the car, doesn’t the total price include the interest?

Meaning…simple numbers…if you finance $10K at 5%, you end up paying $10,500?

Seems to me it’d make more sense, and be simpler, to negotiate the price down to where you want it, and just write a check. I’d also be willing to work with other dealers to find one that will negotiate a non-financed purchase.

There might be some useful info here for you.

How to Buy a New or Used Car and Get the Best Deal Every Time -

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What you’re overlooking is that the buyer would take the cash he or she would have paid and invest that to earn some interest while paying off the loan. For instance, right now that could be split between a 3.3% savings account for the first year’s money and a 4.4% CD for the rest. With some manufacturer loans, that might be enough to cover their interest and more.

If you pay the loan back on the installments you could say that was what you paid for it, just like a house, (just numbers here) $50,000 house financed over thirty years~$100,000.
If you finance a vehicle, then pay the entire loan in 30 days, you pay the selling price-any down payment$fee paid at delivery.
Assuming no prepayment penalty.

A 2 year loan will have 529.00 interest on that 10000.00 - 3 years will have 789.00 .

There are plenty of loan calculator sites . Of course a loan always has filing fees that will not be refunded.

Keep it simple. If buyer is able to pay in cash, negotiate the best cash deal you can. Show dealership some evidence that enough cash actually exists, will likely get their attention.

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General best advice for a cash buyer: Finance through the dealer. They make money on it, and it might get you a better price, or at least less pressure to buy add ons. On a reliable car like a Lexus, politely decline everything the finance manager tries to sell you. Let them know you plan on giving them an excellent survey if they just get you out fast. Pay off the loan in full as soon as you can. If you are feeling nice, you can ask the finance manager how long the loan has to stay open for them to get commission.