re: Is a car purchased from a used car lot lower when paid for by cash rather than financed?

The simple answer is cash/check payment is not a positive for a dealer since they make money on the backend also. You should not let them know you are a cash buyer until after the OTD (out the door) price is finalized. Deflect any discussion of financing.

Unless it is a buy here pay here type of dealer they aren't getting their money monthly, it comes from the company writing the loan so there is no incentive in time other than a few days.

Never flaunt being a cash buyer or already bought at the bank that just lets them know they have to get all their profit on the front end.

Never discuss what payment you are looking for and never say yes to any of their queries about if X will get you to go over the curb today.


Go in with a set number in mind and don't bend on it, it is easy to do but if you weren't willing to pay a higher amount sitting at home why should you change your mind? Go in do the test drive, don't let them pull your credit (even a "soft pull"). If you still want the car sit down and negotiate toward a OTD price, deflect financing. Refuse to pay for any of the bullshite add-ons (unless you actually want them) just barrel through to the OTD price. If you can come to an agreement then steel yourself for the F&I round. Just barrel through all the extended warranty bullshite and get to the point you write a check. If you want an extended warranty do your research and have a price for the ones you can buy to compare to the dealership options. You have to walk in fully ready to walk out on any deal.