Used Cars: Used car negotiation, disability insurance, simple interest

Question
I have seen it hinted on this site that you may be able to negotiate a lower purchase price on a used vehicle if you finance through the dealership.  The theory being that they make money through the finance process.  My plan would be to negotiate a purchase price and finance through dealer. All the while with enough cash to pay for the vehicle in full.  Then when the first payment is due I pay off the loan entirely.  Of course this would have to be for a simple interest loan.  Would any potential savings be enough to justify this strategy?

Answer
Hello CJ, thanks for your question.  What you are asking is true to some extant. The dealers do get paid a small amount for the loans they write but not much.  Most banks pay %1 of the amount financed to the dealer for their effort in doing the paperwork required. Why the dealers offer to arrange financing isn't for the %1 its so they have the chance to sell you extras like warranties and life or disability insurance. They really don't make much on the financing plus if you paid it off on the first payment they would be required to give back the 1%.  In my opinion it wouldn't be worth your time since they probably wouldn't give you much of a discount for financing anyway.  If you can just pay cash and enjoy your new car.  
Thanks again and good luck!  Shane