Paying Cash for a Car? Don't Tell the Dealer Until This Moment

Paying cash is fine. Saying it first is the mistake. Here's the exact moment to say it. And the number "one and a quarter" that two of the biggest car lenders in the country agreed to put in writing with the federal government. Earl Buckner grew up in his dad's two-bay shop in Cedar Fork, Indiana. He's a mechanic, not a money man, so whether you pay cash or borrow is between you and your bank. This video is about the order: price first, then the trade-in, then how you're paying. With what the CFPB, the FTC, Consumer Reports and Kelley Blue Book say, and the one time borrowing on purpose can beat cash. Chapters 0:00 The cashier's check in your pocket 2:26 Step 1: Get a loan quote anyway 3:36 Step 2: The out-the-door price, in writing 4:53 Step 3: When they ask how you're paying 5:28 "One and a quarter": the dealer markup caps 8:05 Step 4: The price of the car, alone 9:26 Step 5: Then the trade-in 10:48 Step 6: The moment to say "cash" 12:30 The day you pay 13:11 When borrowing on purpose can beat cash Earl's example (shown on screen, round numbers, not anyone's real loan): $40,000 for 60 months at 6.00% = about $6,399 in interest. At 7.25% (1.25 points more) = about $7,806. Difference: about $1,408. Kelley Blue Book's figures (about $400 on a $40,000 loan; "over $1,000") are its own estimates. What to say in the finance office: [LINK TO VIDEO 11] The dealer fees, sorted into three piles: [LINK TO VIDEO 14] Earl's little book: [EBOOK LINK] Sources Kelley Blue Book, Paying Cash for a Car in 2026 (Dec 12, 2025): https://www.kbb.com/car-news/should-i... CFPB, What is a buy rate for an auto loan?: https://www.consumerfinance.gov/ask-c... CFPB, Auto Loan Guide (PDF): https://files.consumerfinance.gov/f/d... CFPB, Buying a car? Here's what you need to know: https://www.consumerfinance.gov/about... FTC, Financing or Leasing a Car: https://consumer.ftc.gov/articles/fin... FTC, Buying a New Car: https://consumer.ftc.gov/articles/buy... U.S. Department of Justice, Honda settlement (July 14, 2015): https://www.justice.gov/archives/opa/... U.S. Department of Justice, Toyota Motor Credit settlement (Feb 2, 2016): https://www.justice.gov/opa/pr/justic... PIRG, FTC warning letters to 97 auto groups (March 2026): https://pirg.org/articles/car-dealers... Consumer Reports, How to Negotiate Car Prices by Email or Phone: https://consumerreports.org/car-prici... Regulation Z, 12 CFR 1026.18(k) (prepayment disclosure): https://www.consumerfinance.gov/rules... General information, not legal or financial advice. Talk to your bank.