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Should you get dealer financing and then pay off the loan in full?

Can I get a car loan then pay it off immediately? I have the cash to pay for a new car. However, I've heard you can negotiate the price of the car, especially if you use dealer financing.

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Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Dealerships sometimes use financing to turn a bit more profit through payments on interest. 
You might be able to negotiate a deal where the price is less, but your interest rate is higher. If you can broker this deal for a
new car
, take it.
Then, pay off the loan after the first month. Waiting a month ensures that there are no “errors” with paperwork, real or fake.
Pro tip: Make sure that there’s no prepayment penalty. If there isn’t, you’re essentially getting the car for far less and you won’t have to pay the added interest.
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