Buying a car in cash
Mrs CR37 and I are preparing to buy a new (preowned) car. We are going to pay cash, but are struggling with the logistics. We won’t be able to leave dealership to get a cashiers check in the amount of the car, so we are contemplating getting a check in advance far below the price we want to pay, and then paying balance on debit or credit or personal check.
Anyone have experience with buying a car in cash? How did you execute this process? Thanks in advance!
CR37 I bought a car with cash last year. I put a 500 deposit on a credit card then bought the cashier's check 2 days later when I picked up the car after we settled on the price. I was surprised when I was told (at Hackettstown Honda) they would have accepted a personal check for the full amount.
I would imagine your way would work too.
Route 46Why does it have to be a cashier's check? You can just write a personal check for the full amount and save the trouble of going to the bank at all. Or on the other hand why would you not be able to leave and go to the bank once a price is agreed upon? You can put a deposit (usually 500$) down to "hold" the car until you can return with the check and sign all the paperwork.
Thecatsmeow Congratulations on making the grade to pay cash for a new car, preowned or not!! I think that's fantastic.
They normally only allow a small amount by credit card, but if you have a card that returns point or whatever, take it to the max and enjoy the kickback. If you shed tears, they might let you put a bit more.
For the rest, I just write a check. They have always taken it, didn't need to be cashiers or anything. You should ask, in advance, but the credit card limit is the big variable.
If they poo-poo the personal check for that amount, just ask them for an low-ball estimate, subtract the credit card amount, get a cashier's check for that and then write the personal check for whatever remains as they dot the i's and cross the t's at point of sale. Even the most stringent of them should take that. But ask, they have done this before.
And, so far, in decades of cash purchases, I have yet to get a spiff for paying cash upfront. Doesn't matter, after over half a century of driving, not requiring manuals for anything, I give up. I mean apparently I can't drive in the center, keeps flashing speed limit signs at me, lights dim by themselves, it's like I thought I was just taking a three-hour tour and then: "No keys, no high beam dimmers, no motor on stop, not a single normal thing. Like Robinson Crusoe, I'm primitive as can be"
strangerdanger I have sold several cars to people & will not accept anything other than cash or a cashier's check. People usually give a deposit & then come back with the cash or cashier's check.
Luca I've used credit card for the max allowed - earning me rewards money - and a personal check for the rest
4catmom Today's banking system can electronically put a hold on the money in your bank with just the check. When it comes to a dealer there shouldn't be a reason for a certified check any more.
GC What am I missing, everyone is saying paying cash but none of the options mention an actual wad of cash.
Roywhite Amazing Roy right? I always keep atleast 5 figures cash stashed in the house in case I need to make a quick purchase. Interest rate in my checking is terrible anyway :). It'll save you from some taxes too when buying private party.
Forcefed4door I’ve paid cash for my last 3 cars. I went and negotiated and left deposit by credit card (small) and came back with bank check for the balance
Mommyof3 So I learned today paying “cash” also means bank check or similar, go figure. And that 4door has cash in the home, where do you live again?
A few months ago when I called to a dealer in Washington to tell him I'd like to purchase the car we'd discussed, I asked if I needed to get a Cashier's Check for it since I didn't want to withdraw the money from the bank and carry that and he responded that he'd take a personal check. Maybe it was because the amount was less than 8G or he has a good repo man on speeddial, lol!
You could contact the dealership in advance to find out what methods of payment they accept or check their website to see if it's stated on there, but SD does have a good point about credit cards, you could use the one offering the best rewards for a chunk of your payment and pay that off fully on your next statement to garner the points and add an extra bit of "win" to your deal.
Phil D. I usally bring cash money with me I have on hand in a safe at home slap ot in a brown bag off to the dealer I go
Harry why not maximize your reward points ??
Use a 2nd card or ask c'card company to increase limit .
I did this when on a trip to Maine and came across a Motor cycle I brought home..
steven steven, I don't think that the card limit is the problem; the dealer doesn't want to pay the credit card company's vig of 3% or whatever it is..
ianimal They could pass that on Iman; probably more like they don’t want to wait for the cash. Maybe.
Wait Iman, your time will come. Colleges used to let you run the full tab. With two simultaneously, oh yeah, we were rolling in points and never saw so much debt come n go so fast and then bye bye savings accounts.
Thanks everyone for the feedback! We ended up getting a check for a large chunk, and then paid the rest on CC (that we’re paying off immediately to get the points). It worked perfectly!
A happy ending. Yea!
As the cognitive dissonance sets in; happy driving and hope it continues to be great.
Don't tell the salesman you are paying cash. They make a lot of money on financing and potentially financing cra! add-ons. Negotiate your deal first.
iJay Like someone said earlier, where did the actual CASH come into play? Or did you mean "buying a car outright" instead of with financing?
musicgal Bought a new Honda Passport for Frau Consigliere last September and was told by the Honda dealer (Ray Price) that $5,000 was the maximum amount they’d take as a personal check.
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