Should I tell the dealership my payoff amount?

Asked by: Pietro Beer III  |  Last update: October 14, 2025
Score: 4.2/5 (26 votes)

You are under no legal obligation to tell them your payoff amount, and you can always say “I don't know, but you can find out with the lender,” and see what they offer.

What should you never reveal to the dealer when negotiating?

Don't sign , don't agree to anything. The salesman will always write numbers on a blank sheet of paper. Before you agree to anything, ask them to show invoice price. Never reveal what you are willing to pay monthly.

Why not tell a car dealer you are paying cash?

When negotiating with a car dealership, revealing that you are paying with cash can limit your bargaining power for several reasons: Perception of Urgency: Dealerships may perceive cash buyers as less motivated to negotiate since they have the funds readily available. This could lead them to offer less favorable terms.

What not to say when financing a car?

Let's look at some things to keep under your hat while you explore the lot.
  • "I Don't Know Much About Cars"
  • "My Current Car Is on Its Last Legs"
  • "My Lease Is Almost Up"
  • "I'm Going to Pay Cash!"
  • "I Already Have a Car Loan Lined Up"
  • "I Love This Car"
  • "I've Never Bought a New Car Before"

What to do if a dealership rips you off?

Contact Authorities: Report the incident to local law enforcement. Provide them with all the information you have. Avoid Further Contact: Do not attempt to confront the dealer or recover your money on your own, as this could escalate the situation. Seek Support: Talk to friends or family about what happened.

When Do You Tell a Car Dealership You're Paying Cash?

28 related questions found

How to tell if a car dealership is ripping you off?

How to Know if You’re Getting Ripped off by a Car Dealer
  1. Asking far above the actual value of the car. ...
  2. Focusing on the payment term, instead of the price. ...
  3. Avoiding taxes, titles, and “documentary fees.” ...
  4. Extended warranties that sound too good to be true. ...
  5. Feeling rushed to purchase.

What to do if you get ripped off on a car?

It's important to know what to do when a car dealer rips you off: contact an experienced, trustworthy auto fraud attorney. Once you give them all the details surrounding your situation, they can help you decide whether or not to pursue an auto fraud claim.

Why do dealerships want to know your payoff?

The dealership is just trying to determine that, if they accept the car in trade, that there would be no trouble with the title. One reason is they need to know how much is left on the loan to ensure the correct amount is rolled into the deal on the new vehicle.

What is a red flag in a car dealership?

No Test Drive

You found a car you're interested in buying, but the dealership or car dealer refuses to let you take it for a test drive. Cudd said this is a major red flag.

How to be taken seriously at a car dealership?

Before you ever step foot on a dealer lot, you need to know the specifications of the vehicle you want to purchase. Include safety ratings and check out Consumer Reports. Sales staff will know you are not messing around when you can tell them more about the vehicle than even they know.

Why do dealerships want you to finance instead of cash?

Dealers encourage financing because they may benefit when buyers get loans from automakers' financial arm. Negotiate the best price before letting the dealer know whether you'll use financing or pay cash for your next car.

How much does a car salesman make on a $30k car?

If the invoice cost of a vehicle, for example, is $30,000, then the normal 5-percent profit would be $1,500 and the 25-percent sales commission on the sale would be $375. But if the dealer adds a $400 pack, the adjusted cost is $30,400 and assuming the sales price remains the same, the profit isn't $1,500, but $1,100.

What should you say to a car salesman?

Say this: “I'm willing to pay a fair price for the car I want.” Not that: “I know how much I can afford to pay per month.” If you've researched average prices in your market, and you understand dealers and salespeople need to make some profit, you should be able to negotiate quickly.

How do you beat a car salesman at his own game?

You research the price you should pay before visiting the dealer. Use invoice less holdback less any known incentives. You never negotiate down from MSRP or the dealer's offer. That plays into the dealer's game.

What to say to a car salesman to lower price example?

When negotiating, it helps to be able to justify what you're asking for, he adds: "Instead of saying, 'I want to pay this,' try something like: 'I've looked at five or six different cars that are similar to yours in the market. The price range goes from $19,500 to $20,700. I'm comfortable making an offer of $19,100. '"

What are the 4 rules of negotiating?

The 4 Golden Rules Of Negotiating
  • Golden Rule #1: Never Sell.
  • Golden Rule #2: Build Trust.
  • Golden Rule #3: Come from a Position of Strength.
  • Golden Rule #4: Know When to Walk Away.

When to walk away from a car dealer?

Taxes and fees should also be disclosed, and the asking price should be realistic and reflect the age and condition of the car. If the seller or dealership lacks transparency around any of those, or if the used vehicle cost increases suddenly, consider walking away and looking for a deal elsewhere.

What car is a red flag?

Hongqi (Chinese: 红旗; pinyin: Hóngqí) is a Chinese luxury car brand operated owned by the automaker FAW Group. Hongqi was launched in 1958, making it the oldest Chinese passenger car brand. In Chinese, hongqi means "red flag." Originally, Hongqi models were only for high-ranking government officials.

What things do car dealerships do to hide how poor a car might be?

Cars are usually detailed and then the obvious damage or repairs attended to. Oil and filter changes are common. The shadier places won't use the better synthetic oils even if they are recommended by the manufacturer. They may also add an extra heavy oil to mask engine…

Is a car loan payoff amount negotiable?

Most people hate negotiating car prices. But when it comes to your car loan, negotiating an early payoff could save you big money. Be aware, though, not all lenders will negotiate a payoff quote for a car, and a car loan balance settlement will impact your credit.

Should I tell a car dealer how much I owe on my trade?

You are under no legal obligation to tell them your payoff amount, and you can always say “I don't know, but you can find out with the lender,” and see what they offer.

Why is my payoff amount so high?

If you've been paying on a loan for awhile and it's getting close to where you can pay it off, you may notice that the payoff amount of the loan is different than your loan's current balance. No, it's not a mistake. That's because the difference likely is because of the way the interest of your loan is calculated.

How do you know if a car dealer is ripping you off?

How to Not Get Ripped Off When Buying A New Car
  1. The Car Only Comes With Dealer-Installed Options. ...
  2. They Want to Know Your Target Monthly Payment. ...
  3. They Sold That Car, Here's a Higher-Priced Model. ...
  4. They Pressure You to Get an Extended Warranty. ...
  5. They Want to Mix Financing and the Price of the Car.

What to do if your car cuts you off?

If someone cuts you off, slow down and give them room to merge into your lane. Driving slowly in the left lane. If you are in the left lane and someone wants to pass, move over and let them by.

What can you do if you get scammed by a car dealership?

the Better Business Bureau's (BBB) Auto Line.

If you believe a dealer committed fraud or misrepresentation, you might want to contact an attorney with experience in consumer protection law. Once they learn the facts about your situation, they can advise you about your legal options.