Submitted by diffyqgirl t3_10hyx9n in personalfinance
Total car buying noob here.
I'm worried that if I tell them I'm planning to pay cash, they'll quote me a higher number because they make less money off a cash purchase than they would with a loan. Is this something that really happens or am I just being paranoid?
Edits to answer a few questions I've been getting:
> Why would you buy in cash?
I can afford it and, while depending on markets it might be better to take a loan and invest the money, I'd just rather not have a big loan hanging over me.
> New or used?
Haven't decided yet, I figured this question was applicable either way.
And another question for y'all--a bunch of people have advised to take the loan then pay it off immediately so that "everybody wins". What sorts of things should I watch for in a contract that might screw me over if I try to do this? Like penalties/rules against paying it early?