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Why do dealers want to know how you're going to pay for a new car?

Why do dealers ask how I'm going to pay for a new car? I've bought several cars from dealers and I always get asked how I'm going to pay for the car.

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Dealers want to know how you’re paying for the car for several reasons.
If you are going to finance the car, they will:
  • pull your credit
  • talk with lenders
  • do a bunch of paperwork
If you pay cash for a vehicle, the dealer wants to know so they can:
  • negotiate a deal with you
  • convince you to finance part of it
  • do some paperwork
This is a common question from dealers and it just makes their life a bit easier as well as gets you your
new car
more quickly.”
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