Vehicle finance, would this be wrong to do?

[tight fart]

Cash is no longer king when buying a vehicle, so would it be wrong to negotiate the best price
with a finance deal that earns the seller a good commission, then settle in full in the first month
incurring no penalties?

[Sarnie]

tight fart said:

Cash is no longer king when buying a vehicle, so would it be wrong to negotiate the best price
with a finance deal that earns the seller a good commission, then settle in full in the first month
incurring no penalties?

I would assume that the sellers commission would be clawed back in this instance.....if only to stop sellers pushing finance and then telling customers that they can redeem the finance immediately, so that they both benefit........there'll be nothing legally stopping you redeeming the finance though......if you're not bothered about your relationship with the seller

[HTP99]

Just exercise your legal right to withdraw from the finance within 14 days of signing the finance documents, no first payment to make and you only pay a few days interest.

[DonkeyApple]

It's a good question. I've often thought that now we are in a market where cash offers no competition so doesn't need to be catered for that the only credible way to buy cash today would be to screw down the absolute best deal via some form of finance package, use their sales system to trade discount on the product for elevated costs on the finance side and then just cancel the finance shortly after.

But, what does the small print say? For example do they make the value of the car sale contingent on the finance element and if thatvis removed are you triggering a legal revaluation of what you paid for in regards to the car?

[SlidingSideways]

Why would a seller offer a discount based on an amount they aren't 100% certain to receive? I'm guessing that statistically it happens so rarely that it's worth the risk.

[Granfondo]

I have done it twice now and there has been no come back! (Landrover finance).

[Sheepshanks]

HTP99 said:

Just exercise your legal right to withdraw from the finance within 14 days of signing the finance documents, no first payment to make and you only pay a few days interest.

^ This. I recently did it on a VW and I'm aware it's very common on Mercs.

One advantage of Withdrawing vs Settling is there no doc etc fees to pay, which used to be £200 or so. However these seem to have been largely done away with now anyway.

Salesmen will often suggest it if there a big deposit contribution, but they usually say to settle after 3 months - I guess as they and the garage keep the commission.


I've always been a cash buyer but doing the PCP deal on the VW really opened my eyes. No massive cash or finance discussion / argument and the salesman was incredibly co-operative - it seemed almost everything I asked for the salesman just said "yes".

[Hainey]

I've done it on everything from a mobile phone contract to a bmw. Go for it. They play the game, you play the game. It's how life is.