Finance newish car or cash purchase. How to get cheapest.
Discussion
I'm looking to get a newish car between 1-2 years old. How am I likely to be able to negotiate the lowest cost?
Clearly any finance deal will involve interest payments whether hidden or not. Surely even 0% finance has interest hidden in the purchase price.
Are dealers incentivised to sell on finance, possibly offering a lower purchase price but say 2 weeks in, could I pay off the full amount saving the long term interest?
Clearly any finance deal will involve interest payments whether hidden or not. Surely even 0% finance has interest hidden in the purchase price.
Are dealers incentivised to sell on finance, possibly offering a lower purchase price but say 2 weeks in, could I pay off the full amount saving the long term interest?
I will say that the rate you'll get on finance for a nearly-new car is unlikely to be as good as a new car. We looked at a second-hand 1 series recently that was about a year old, but it worked out cheaper on PCP to get a brand new one instead. The other option is to avoid the dealer finance altogether and look into a personal loan, but then I don't know what sort of ballpark you're looking in.
I'm just trying to find the cheapest way to buy a nearly new car. At one time, you could con a dealer into offering you a good deal on finance as they were getting a cut but then a couple of weeks into the deal, pay the outstanding finance off and get the benefit of the finance incentive.
A lot of nearly new cars seem to have their prices propped up and then the finance deals are geared towards new so like the poster above - the finance buyer ends up going for new and cash buyer goes for a nearly new car with an over inflated price.
This has become really apparent in the last couple of months as I'm seeing positive inflation of nearly new cars which makes the finance deal to those it benefits of more interest.
PCPs are great if you've either not got the money to buy outright or if you have something better to put your money in but not so great if you don't fall into either of those categories.
Looking at some of the deals recently, if you need to finance, you'd go for a new over nearly new on many models.
This has the net effect that car prices can be pushed up and most of the buying public don't notice.
A lot of nearly new cars seem to have their prices propped up and then the finance deals are geared towards new so like the poster above - the finance buyer ends up going for new and cash buyer goes for a nearly new car with an over inflated price.
This has become really apparent in the last couple of months as I'm seeing positive inflation of nearly new cars which makes the finance deal to those it benefits of more interest.
PCPs are great if you've either not got the money to buy outright or if you have something better to put your money in but not so great if you don't fall into either of those categories.
Looking at some of the deals recently, if you need to finance, you'd go for a new over nearly new on many models.
This has the net effect that car prices can be pushed up and most of the buying public don't notice.
Phateuk said:
How long do you intend on keeping the car?
I don't know. I'll give it 6 months to decide if I like it or 5 years if I love it. In that time I might do anything from 5-20K miles per year.Are you asking as you think a pcp may make sense for me?
What puts me off a pcp is the high levels of real interest and the thought of paying 10-15ppm if I go over whatever the agreement is.
Now if I could find a pcp on a car that I like with a realistic ppm and it is being supported with a payment by the manufacturer, I may just be swayed but those deals normally have you waiting weeks for delivery. I want a car now.
Pistom said:
Now if I could find a pcp on a car that I like with a realistic ppm and it is being supported with a payment by the manufacturer, I may just be swayed but those deals normally have you waiting weeks for delivery. I want a car now.
Know what you mean... I was all setup to but a new Skoda Citigo on 0% @ £69PM 3 Years with all servicing etc to replace a thirsty 4x4. Unfortunately there was a 4 month wait! Bought similar second hand VW car instead 
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