Why do dealers want to know how you're going to pay for a new car?

Why do dealers ask how I'm going to pay for a new car? I've bought several cars from dealers and I always get asked how I'm going to pay for the car.

Answer provided by
Eric Schad
Answered on Jul 03, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Dealers want to know how you’re paying for the car for several reasons.
If you are going to finance the car, they will:
  • pull your credit
  • talk with lenders
  • do a bunch of paperwork
If you pay cash for a vehicle, the dealer wants to know so they can:
  • negotiate a deal with you
  • convince you to finance part of it
  • do some paperwork
This is a common question from dealers and it just makes their life a bit easier as well as gets you your new car more quickly.”

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