Topic: NEW CAR SOS

[dc12345]

If I have purchased a new vehicle from the dealer and signed for financing however; I now want to pay CASH instead is that allowed? No delivery has taken place yet nor is there a VIN as it was a dealer locate.

Bill of sale signed and deposit put down (2000)

[rrocket]

If I have purchased a new vehicle from the dealer and signed for financing however; I now want to pay CASH instead is that allowed? No delivery has taken place yet nor is there a VIN as it was a dealer locate.

Bill of sale signed and deposit put down (2000)

I don't see why not.

Just call them and ask.

[JohnnyMac]

Almost all new car loans through dealers allow you to pay off the loan early, so even if you financed it through the dealer and a week later won the lotto, you could pay off the loan without any penalty.

[dc12345]

Almost all new car loans through dealers allow you to pay off the loan early, so even if you financed it through the dealer and a week later won the lotto, you could pay off the loan without any penalty.

Yes but the dealer/bank financing offer charges the interest upfront - want to avoid that.

[rrocket]

Almost all new car loans through dealers allow you to pay off the loan early, so even if you financed it through the dealer and a week later won the lotto, you could pay off the loan without any penalty.

Yes but the dealer/bank financing offer charges the interest upfront - want to avoid that.

How can they charge you interest that you haven't "used"?

For example, if you pay it out after one month, you get charged one month of interest... you shouldn't get charged 5 years of interest...or whatever the full term is.

[dc12345]

Almost all new car loans through dealers allow you to pay off the loan early, so even if you financed it through the dealer and a week later won the lotto, you could pay off the loan without any penalty.

Yes but the dealer/bank financing offer charges the interest upfront - want to avoid that.

How can they charge you interest that you haven't "used"?

For example, if you pay it out after one month, you get charged one month of interest... you shouldn't get charged 5 years of interest...or whatever the full term is.

i agree with that 100% but the bill of sale reflects the interest charge for the term under the financing section. Regardless I am not taking the financing and will not pay interest on something i have not used (as you mentioned). Just figured I would throw this out there because some dealerships give deals based on the fact your are taking the financing.

[sailor723]

Almost all new car loans through dealers allow you to pay off the loan early, so even if you financed it through the dealer and a week later won the lotto, you could pay off the loan without any penalty.

Yes but the dealer/bank financing offer charges the interest upfront - want to avoid that.

How can they charge you interest that you haven't "used"?

For example, if you pay it out after one month, you get charged one month of interest... you shouldn't get charged 5 years of interest...or whatever the full term is.

i agree with that 100% but the bill of sale reflects the interest charge for the term under the financing section. Regardless I am not taking the financing and will not pay interest on something i have not used (as you mentioned). Just figured I would throw this out there because some dealerships give deals based on the fact your are taking the financing.

I think what you are seeing is them disclosing what the cost of financing will be over the term of the loan.

[rrocket]

^^^^ This.

[dkaz]

They have to disclose how much interest you are paying over the term of the loan if you were paying it out to the term. If you pay it off sooner, you pay less interest. Simple.

[tooscoops]

switching between financing/cash is no big deal with the caveat that there is no additional discount for a finance deal. shouldn't be a problem, just call in to let them know. you will likely have a few bucks less due to no PPSA charge to register the lien.

as for paying off early, go right ahead. no car loans are "front loaded" or whatever. interest is calculated normally, based on the principal amount, so it seems like more interest at the beginning of the loan, but it is just the math of it.

if you are paying it off early, no big deal.. do it however/whenever you like, but as a courtesy, if you can wait a few months, the dealer would appreciate it. the reserve (like 100-200 bucks) that the dealership makes for sending the bank the business gets charged back if it's paid off too soon. don't let that sway you one way or another as it's not your problem, but if you happen to be looking at paying it off in 2 and a half months... maybe just give it another week or two if you don't mind.