Should you tell a car dealer your payoff amount?

Asked by: Mrs. Odie Schaden  |  Last update: February 14, 2026
Score: 4.4/5 (62 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.

What is a red flag in a dealership?

The Red Flags Rule was created by the FTC and other federal agencies to help prevent identity theft. Almost all auto dealers will be impacted by the Red Flags Rule. If you lend to customers, check customer credit history, or extend credit in any way, you must comply with the Red Flags Rule.

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.

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.

Guys buys $770k SF90 ends up in 200k negative equity

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Do dealerships charge more if you pay cash?

You'll pay far more for your car if you ask to pay for it all upfront with cash. That's because the dealership will not be willing to negotiate as much on the front-end of the car deal since you will not become a sales opportunity for the back-end of the deal (aka in the F&I office).

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 happens when you request a payoff amount?

A payoff request is a statement prepared by your lender which details the payoff amount for prepayment of your mortgage loan. The payoff statement will typically be the remaining balance on your mortgage loan, but it might also include any accrued interest or late charges/fees that could be owed.

Does a car payoff increase credit score?

In the short term, paying off your car loan early will impact your credit score — usually by dropping it a few points. Over the long term, it may rise because you've reduced your debt-to-income ratio.

Can you negotiate a payoff amount?

With do-it-yourself debt settlement, you negotiate directly with your creditors in an effort to settle your debt for less than you originally owed. The strategy works best for debts that are already delinquent.

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.

What does RDR mean dealership?

Car manufacturers generally require deal- ers to complete a retail delivery report (RDR) about every purchase or lease transaction.

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 are 10 things not to say at a car dealership?

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"

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

How you respond can keep the conversation headed toward the best price you can get.
  1. Getting the Most for Your Trade-in. ...
  2. Take a Look at the Factory Invoice. ...
  3. Your Monthly Payment Amount is Your Business. ...
  4. The Negotiations. ...
  5. Best Time to Buy a Car.

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. '"

Why is my payoff amount more than what I owe on my car?

No, it's not a mistake. That's because the difference likely is because of the way the interest of your loan is calculated. Basically, your balance is what you currently owe, and your payoff is what you owe plus interest that accrues from the statement date and a specific payoff date.

Can you pay off a 72 month car loan early?

You could save interest and free up room in your budget by paying your auto loan off early. There are several options available — including refinancing, paying biweekly and rounding up payments, just to name a few. Confirm your lender doesn't charge a prepayment penalty since the cost could be more than what you save.

How to get 800 credit score?

Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.

When should I request a payoff quote?

You'll need to request your free payoff quote as you think about paying off your mortgage. Your payoff amount will likely be different from the principal balance shown on your monthly statement or at chase.com because of the additional days of interest or other amounts included.

How to negotiate a car payoff settlement?

Understanding Debt Settlement for Auto Loans
  1. Propose a Settlement Offer. Offer a lump sum payment that is less than the total amount owed. ...
  2. Create a Debt Settlement Plan. ...
  3. Document Your Hardship. ...
  4. Be Persistent and Patient. ...
  5. Offer Immediate Payment. ...
  6. Negotiate a Deficiency Balance Settlement. ...
  7. Rebuild Your Credit.

How do I determine the payoff amount on my car?

Call or Go Online. The easiest way to calculate your total loan payoff amount is to go online or call your lender directly. Many lenders have calculators available so that you can pick a date in the future and calculate your payoff from then.

Why do car dealers like big down payments?

A low credit score's impact on your loan conditions decreases as you put more money down. Lenders are always going to be hesitant to lend to someone with a low credit score, so a larger down payment can help make them feel as if you're less risky.

What is the average car payment on a $30 000 vehicle?

It's total loan amount (including interest) divided by the loan term (number of months you have to repay the loan. For example, the total interest for a $30,000, 60-month loan at 7% would be $6,497.40. So the monthly payment would be $608.29 ($30,000 + $6,497.40 ÷ 60 = $552.50).

Which car dealerships pay the most?

Top paying companies in Retail & Wholesale for Car Salesman are Napleton Automotive Group, Corwin Automotive Group, and Ken Garff Automotive Group.