Looking at buy first truck not sure if this is a good deal.....

Maybe an economics class is in order.
I will do my best to keep it simple.
Truck selling price in cash $40K
Truck selling price if finances (aka a loan) $40K plus x% interest. Pay cash and when you hit a rough bump you don’t have a payment that has to be made. Pretty basic example of how cash is king and doesn’t even cover the fact that when paying in cash you probably could negotiate something below $40K. Finance the truck and you just lost most of your leverage.
Most places would RATHER you finance because THEY make more $ that way......I can’t believe I am even having to explain this but this is why cash is ALWAYS king!

 

I don't know about evictions but nothing has been passed yet.

 

If you listen to the correct media outlet, one party has passed a GREAT round of stimulus that is being blocked by the other party........
About that $40K truck.....I can finance you for a low monthly payment of $1000 for 96 months.
You interested?

 

CASH IS ALWAYS KING!!!!

 

Guys, it is important to note that if you are buying from a dealership, whether its cars or semis, DO NOT TELL THEM YOU ARE PAYING CASH.
This is old fashioned thinking and today has the opposite effect that you think it does.
They are going to give you a way better price on the truck if they think they are going to make a bunch of money on the financing.
You can visibly see a salesmans shoulders drop when you say you have cash. You are no longer as valuable a customer to them as the guy on a shoestring who is financing at a horrible interest rate.

 

That is a true statement. Thank you.

 

I don’t know if I can agree with that part of it.
Cash is an easier path to close the deal and if you are financing the deal you have no leverage to negotiate the price.
At the very least let’s agree that if the advertised price is $40K and you finance the the truck you are paying more than $40K. If you pay cash you are paying no more than $40K.
Dealerships receive a kickback from the finance company. If your rate is say 5%, roughly 1% of that is given back to the dealership as a thank you for pushing the customer their way.

 

Exactly the opposite is now true.
The internet has completely changed the dealership model because there is now complete value transparency.
If you say you are paying cash, you are not going have any negotiating leverage since they no longer make very much money off the price of the car.
Do not tell them how you are going to pay until negotiations are over or you will be losing money.

 

I am still not buying it but let’s move past it and assume this to be true.
If dealerships are willing to pass up an easy sell when someone is paying cash to wait for someone who is financing, what does this tell us about the economy?
To me, it indicates that the economy is pretty robust and trucks are in high demand. Vehicle sales and new home builds Are the two biggest indicators of how our economy is doing

 

Actually this is not true. The sales department and the finance department are separate. The salesman makes nothing off the financing. But if you tell them you are financing you are summed up as a patsy. The typical statements from them are "how much would my payments be" and "can you get me financed". The price of the vehicle rarely matters, as they are in no position to haggle price.

 

That's exactly what I said. Cash is king. Put down the beer.