The Simplified Modern-Day Buying Guide: Part 3

The third installment of this sector will go over cash transactions and outside financial sources. Catch the first two regarding financing and leasing if you’d like! The least common of all transactions, very few these days truly pay cash for their vehicles. In a world dominated by credit, it isn’t too unlikely to get a loan through your own lending institution. Overall, this makes the process relatively easy – it is treated as simply as a true cash transaction. You sign the paperwork and provide a check. This option is favorable to those who have been pre-approved at their banks or who have a long-standing relationship with a bank or credit union. One of the biggest misconceptions about obtaining your own financing is that you are getting the lowest interest rate by going through the process yourself. While that is sometimes true, many dealerships can actually get comparable or even more competitive rates due to their indirect lending relationship, which is great for you – lower interest rate and one less trip to make while buying a car!


If in the end, you decide to go with a cash transaction or outside lending institution, there are a couple of things to keep in mind. First, while some agree with the statement “cash is king”, unless you want to feel like a mob boss with your duffel bags full of money, a cashier’s check works just fine from your bank (if you do want to feel like a mob boss, we won’t stop you). Second, if you are obtaining a loan through your lending institution, many will require a purchase contract, which is a contract that outlines the exact terms of your vehicle purchase, as well as the purchase amount. Keep in mind that if you would like to purchase any options to enhance your ownership experience such as an extended warranty or an environmental protection package, it will be easier to discuss such options beforehand and have it included on the purchase contract. Lastly, in the state of Wisconsin, any time there is a lien out on a vehicle whether through your own obtainment or through a dealership, the bank holds the title until the lien is satisfied. Typically, banks will send a party number and address for the DMV to send the title to if you obtain your own financing. If you bring that along to do the paperwork, the process will move along much more quickly.

Writing on Forms

Our next series will go over what to expect in the finance office, so stay tuned!

1 Comment

  1. […] going to procure funding for you new or new-to-you purchase (need a refresher? finance, lease, or outside lending/cash), so what should you expect from the business side of this deal? There are a couple of myths […]


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