For those who bought vehicles without financing.. Question

[Daikon]

Hi, I'm planning to buy a new vehicle for my wife. I plan to pay in full with a cashiers check.

I want to avoid credit inquires on my credit (I have a a healthy score and credit history).

Is simply going to the bank and getting a cashiers check for the full amount all I need to do to drive away after all sales documents are signed?

Located in California if that matters.

 

[GCT4R]

Yes, pretty much. I believe the dealers will take care of the title with the state and have it mailed to you once they have it under your name.

 

[5150 Runner]

Hi, I'm planning to buy a new vehicle for my wife. I plan to pay in full with a cashiers check.

I want to avoid credit inquires on my credit (I have a a healthy score and credit history).

Is simply going to the bank and getting a cashiers check for the full amount all I need to do to drive away after all sales documents are signed?

Located in California if that matters.

I bought my 2021 4runner TRD Off Road in cash with a check.. but it wasnt so easy.

I test drove and asked about a personal check or cashiers check the salesperson said no problem.

So I come back next day to pay they were jerks and told me no checks of any kind.

Im like how do you pay if you dont finance... they said cash. Im like NO WAY im bringing 50K in cash to a car dealer. I said I can put on two credit cards they quickly said no to that..

So they called a manager and said they would do an option contract for the sale.. that ment if the check didnt clear in X days I was on the hook for the financing of vehicle. I had to go thru prelim credit check etc and it never got processed due to my check clearing.. imagine that.

I paid with check and drove away and in a few days the check cleared.. less than a month I got the title and a week or so later the plates from the DMV.

Apparently the dealer I went to (Glendale Toyota in Glendale CA)) has had problems of people stopping payment of check and taking off with car (i think thats some BS story myself).

Thats how it went for me .. maybe my dealer was just a jerk and wanted to hard sell the financing?

 

[Old Tanker]

Three recent car purchases:
2019 4Runner - had a loan document in hand from an outside bank. I think the dealer ran a credit check anyway, using information provided after the salesman asked a series of Patriot Act questions. I don't like being lied to, and have never gone back to that dealer.
Used RAV 4 for my daughter - brought a cashiers check from my bank. No issues.
2021 RAV4 for my wife - wrote a personal check to the dealer. No credit check, no issues.

 

[swampdodo]

When I bought my '05 way back when in Cali...I just wrote them a personal check...no issues. They didn't like it, but they took it.

Same when I bought my used '08 Sorento 3 years ago. They didn't like it, but they took it.

They didn't like it because if they get you into a loan they issue, they get kickbacks.

 

[JLTD]

When I bought my '05 way back when in Cali...I just wrote them a personal check...no issues. They didn't like it, but they took it.

Same when I bought my used '08 Sorento 3 years ago. They didn't like it, but they took it.

They didn't like it because if they get you into a loan they issue, they get kickbacks.

Truth...they get something extra when they issue a loan.

Considering writing a check for my next purchase. Subscribed.

 

[Humble Leader]

I've only ever used a bank draft to purchase a vehicle - which is a bit different than a cashiers check. I've never had a credit check done for this and have never had any issues paying with this method

with a bank draft the bank removes funds from your account when they issue the check and sets them aside and writes a draft to the seller. bank drafts have zero risk to the seller unless the bank becomes insolvent somehow in very short period of time

bank drafts generally are not free unless you have a certain type of account

 

[swampdodo]

So, what do you guys think about this?


Why You Should Finance Your Car (And Not Pay Cash) - YouTube

 

[Deuxdiesel]

So, what do you guys think about this?


Why You Should Finance Your Car (And Not Pay Cash) - YouTube

He brings up some good points, but the most important to me is to only finance if you otherwise have the cash on hand to pay for it. I see so many people finance cars that exceed their yearly income that it boggles the mind.

 

[2021nightshade4x4]

Hi, I'm planning to buy a new vehicle for my wife. I plan to pay in full with a cashiers check.

I want to avoid credit inquires on my credit (I have a a healthy score and credit history).

Is simply going to the bank and getting a cashiers check for the full amount all I need to do to drive away after all sales documents are signed?

Located in California if that matters.

I brought a check from my credit union. Dealer did not ever even GET my SSN to pull an inquiry.


Sent from my iPhone using Tapatalk

 

[Bumbo]

So, what do you guys think about this?


Why You Should Finance Your Car (And Not Pay Cash) - YouTube

I'm seeing 1.69% to 1.89% for bank rates on a new car... inflation is higher than that.

Financing, even if you can pay in cash, is a great option. If you are invested, you would be better off staying that way and just taking the low rate.

 

[Old Tanker]

I'm seeing 1.69% to 1.89% for bank rates on a new car... inflation is higher than that.

Financing, even if you can pay in cash, is a great option. If you are invested, you would be better off staying that way and just taking the low rate.

Inflation is getting out of control, and the days of cheap financing are numbered. When rates go up, expect a massive market crash.

Just because inflation is high doesn't guarantee that your income or investments will keep pace.

 

[Bumbo]

Inflation is getting out of control, and the days of cheap financing are numbered. When rates go up, expect a massive market crash.

Just because inflation is high doesn't guarantee that your income or investments will keep pace.

You are right, but I am already well invested. I'd actually be worse off selling and paying capital gains to buy a car vs just letting it ride and borrowing some low interest money.

Alternately... cash in hand is a good tool as well. If you can get these rates, I dont see why not.

But to your point, there is a balance. I have no problem with debt, provided the risk is managed correctly.

 

[Humble Leader]

So, what do you guys think about this?


Why You Should Finance Your Car (And Not Pay Cash) - YouTube

the idea is that financing a car will give you a better discount off MSRP because dealers will make it back + more off of interest. if you have the ability to prepay anytime and have the cash on hand when you finance, make a couple payments and then lump sum repay the vehicle. You will have paid less (in theory) than if you had just purchased with cash instead

it's worthwhile to investigate and see what your net savings would be. the downside is obviously a credit check must be done and goes against your score + for however long before you have no loan repayment penalties you have just someone else whose collecting payments from you each month, limiting your monthly discretionary cash flow

the other option is looking at interest rate differentials. sure if your loan is less than what you're currently invested in you should keep the loan outstanding since you're making more in interest off your portfolio vs. paying on the car loan. purely a mathematical exercise as most people would rather not have to deal with the admin of having another creditor to save a few hundred $ a year.

the whole concept of loans in general allows people to buy something today that they otherwise probably couldn't afford and pay for it over a long period of time. people view 0% financing as a great deal but really you're not 'saving' anything, you're paying more, just over a long period of time

finance appreciating assets, like houses, business ventures , not depreciating assets like vehicles. maximize your monthly discretionary cash flow

 

[gordonp]

Hi, I'm planning to buy a new ... pay in full with a cashiers check.

I want to avoid credit inquires

I can't speak to California, but a bit north of you in Canada's Wet Coast I had no problem writing a personal check on-the-spot. I didn't need a Bank Draft / Cashier's Check, nor was there any kind of credit-check involved.

Maybe it helped that I had dealt with this particular sales-guy 5 years earlier, and he specializes in providing sales-service to Professsionals who are members of Professional Associations.

Good luck! Enjoy your (wife's!) new purchase

 

[johnathanniko]

I've only ever used a bank draft to buy a car, which isn't the same as a cashier's check. I've never been subjected to a credit check for this, and I've never had any problems paying using this method. While I was broke, I used short term loans ontario for a down payment. When you write a bank draft, the bank takes cash from your account, puts them away, and writes a draft to the seller. Unless the bank goes insolvent in a relatively short amount of time, bank drafts provide no danger to the seller.

 

[DAW89446]

Is simply going to the bank and getting a cashiers check for the full amount all I need to do to drive away after all sales documents are signed?

That’s what I did when I bought my ‘18 SR5.

 

[Oldmanb777]

Last two vehicel purchases, I wrote a personal check. One was a motorcycle. Both times they scanned the check and I believe the transfer was done in minutes. My bank had it recorded in my account by the time i got home. Neither wanted a credit card, since they have to pay for that. I would have liked the points, but they wanted me to pay their cost of that transaction.
I am under the impression that you may get a better deal if you finance. They make money on it. Then just pay it off next week.

 

[John in NC]

I got wiring instructions, and made an appointment at the bank and we sent the wire.

My situation was a little different though, I'm in North Carolina and was buying from a dealer in Florida and having it shipped.

 

[Daikon]

To follow up..

In August 2021, we got the call that our reserved vehicle had arrived. We flew to Northern California, ubered to the dealership, test drive, went to finance, let them do their thing (try to sell extended warranty, finance options, ect) and told them we were paying in full. The finance person did the paperwork, gave us the bill of sale, let us take the NEW CAR to the bank, get a cashiers check, come back and gave it to them and we were on our way.

They did not ask for a SSN since we weren't financing and didn't try to sell us on the idea that it's required for the patriots act (criminal check)