First Car Guide for First Time Car Buyers

No.

Since dealers don't finance cars themselves, they don't care if the cash comes directly from you, or from a bank or loan company that gives you a loan. Actually, if a dealer arranges a loan for you with his "captive" finance company, he typically gets a "finders fee" or commission, which increases his profit on the sale. In that case, he would prefer that you not pay cash.

What is frequently misunderstood is that dealers only sell cars; they do not finance or lease cars. They provide a service to their customers in arranging financing with an associated finance company on customers' behalf. Customers can arrange their own financing if they want.

The only case in which dealers provide their own financing is that of some "buy-here-pay-here" used car dealers. These are usually relatively small, high-risk, high-interest loans for older used cars sold to customers with credit problems.