So, my brother worked at a car dealership for several years and gave me some tips on how to get the best price for a car. My wife and I, fortunately, are in the financial position where we can afford to purchase a car outright, using cash. I thought this was the best way to approach a salesman telling them I can write a check today for the full amount. My brother had a different strategy to use. He said when negotiating the price of a vehicle, to say we are going to finance the car using the dealership's in house financing and we should get a better price. The reason being is they will make more money on the back end of the financing, either by a lump sum paid to them by the financial institution doing the financing or a small percentage of the interest rate each month. So, the dealership can afford to not make anything off the actual sales price of the car since they are making money off the financing. Then, when we get into the financing area where they are putting us through the ringer, ask how many payments we have to make in order to not get charged a prepayment fee. The typical length of time is 3-6 payments. After that time, pay it off. So, even if we are looking at 3% interest on a $30,000 car, that would be $225 in three months or $430 in six months of interest. But if we can save $1,000 or more off the sticker price, it would be worth it.

Has anyone ever tried this or have any other insight?