Well... not necessarily.
Before my first husband passed away we bought and sold cars on a very regular basis (I am 32 and have had as many cars(33 actually)).
The dealership, the salesman and the finance manager all ALL ALL get kickbacks from you financing the car through them.
The way to get the best price on a car - and I speak from experience - is to go to the dealership with finanacing already worked out. Look until you find the car you want. Tell them you do not want them to run your credit, what you are looking for is a good faith estimate on what they can do so you can shop around a bit. They will try to convince but stand firm. LEAVE THE DEALERSHIP - even if it is only for an hour. They will call your cell (believe me). Go back to the dealership make a reasonable offer, the salesman will say "Well lets run the numbers and see where we are at" - ALL YOU NEED TO SAY IS THAT YOU DO NOT WANT AN INQ AND you need to know what the payments are on what you have worked out. He's going to ask what payment range - go low!
He will "pretend" to go and talk with sales managers and finance managers... The salesperson will come back and say the lowest they can go is $XXXXX and at that he's not even making commission. Or only making $300 or so commission. All the while making them believe you are financing throug them. Don't tell them you are or are not, if they ask if this is a financed purchase say yes - and you will not be lying - you have already pre-arranged that.
The Salesperson will then say well here is your payment.... etc. etc. etc. and we have cut the base price down to this. You will get offered more money for your trade and the purchase price of the new car will be cheaper if they think you are financing through them.
Then just smile a sweet smile and say I'll take it. The salesperson will be confused, but it is ILLEGAL for them to give you a better deal on a car with financing vs. cash but they do.
Don't believe me? Try it. Go to two dealerships look at the same car - same options - tell one you will be financing and the other it is cash. The financed car will be cheaper because of their kickbacks.
A little known fact... But it is fact!
