Most effective way to buy a car with cash and no credit history?
August 28, 2011 6:32 PM Subscribe
I don't really know how car buying works, help please!
posted by p3on to Work & Money (16 answers total) 17 users marked this as a favorite
My grandparents just gave my brother and I a bunch of money to get cars (sort of an early partial inheritance thing). I'm planning on buying a new car, but I have no credit history. I'd strongly prefer to pay cash, but from what I've read, dealers don't like this because they won't make money on financing and it makes it harder to get a good deal.
What's the best strategy? I've seen people suggest hiding the fact that you're paying cash until you've settled on a price, but I don't understand how you lock the dealer into the agreement and then whip that out. In another thread
someone said they got financing and immediately payed it off, which sounded like a good idea until I read about this
(remember I have no credit history so my interest on a loan would be pretty sick). Should I just make a huge down payment? I live in Texas if that makes a difference.