Strange as it may seem, the dealer prefers that you finance it!

The dealership makes the most money from leases, followed by dealer-financing (they get a cut from the finance deal). From a cashflow point of view, they obviously like the idea of cash up front, but they will discount the vehicle more if they finance it.

I have seen this in action when a work colleague purchased a car some years ago. After negotiations were done, the purchaser took out his check book. The dealer said “I thought you said you were financing it”. He replied “No, I said I would _consider_ financing it”. The Salesman was furious – he made a bigger commission on finance deals – and refused to sell the car at the agreed price.