You used to get a better deal if you could pay cash. At Red Rock dealerships, it’s now the opposite.
Red Rock Kia is advertising a 2018 Nissan Murano on Facebook Marketplace with two different prices: one if a customer finances the car, and another almost $900 higher for customers who pay cash.
The ad points to the financed price, and crows “Saves money!”
Come on, Red Rock. We’re not idiots.
Any form of financing will cost a buyer far more than they can ever save on this deal.
Even under the best circumstances, for example a customer who finances $27,000, has an excellent credit score and a 48 month loan at a 5% interest rate, after adding taxes and fees to the deal, the interest on that loan will cost at least $3,350.
Small potatoes compared to the what Red Rock wants to charge people who pay cash.
It’s legal for them to do this. After all, they’re telling you about it right up front, as they should
But that also gives people the ability to vote with their feet by patronizing businesses that don’t discriminate against customers based on form of payment.
It looks like the same car is listed on Red Rock Kia’s website for $24,565. Kelley Blue Book shows the fair market Dealer Price as being between $21,027 and $23,364.