Shopping around when financing a new car.

[jimmy156]

My girlfriend and I are looking to get a new for her. One of the options is using finance to buy a new car (probably a MINI)

Having never bought a new car before, is it necessary to "shop around" at different dealers or are they all likely to do a similar deal?

Also is it best to haggle on the price of the car or the terms of the finance? or both?

Please lets not have this descend into a discussion of finance vs. cash or new vs. old, I am aware of the pro's and cons of each!

[jimmy156]

• bump* any advice anyone?

[kiethton]

If it is pure finance with no PX look at keeping a consistent deposit but look for the lowest monthly payment on a specific car (if used) or model and spec if new.

Then the APR's/Cost of the car becomes largely irrelevant (some dealers may discount the car and keep a high APR and others vice versa) so you are then able to compare apples with apples....

[fatboy b]

I've just bought a new Jag on finance. In my experience, the APR across the dealers was the same on a new car. What varied was the discount given. So,you need fo find out what the true finance rate is if you're geting varying APRs, then negotiate the discount based on that.

[Shurv]

Work out what deposit you want to put down,then look at the lowest APR you can get for the monthly payment you can afford. You can go to your bank for the cash and get a circa 8% Apr, internet best buys are about the same,dealers often have manufacturer supported finance schemes offering lower Apr's than that.Many have 0% at the moment,which is good as long as you can still haggle on the price of the car.Look at drivethedeal.com for low prices and then approach your local dealer and see if they will match the best internet price you can find.

[ILoveMondeo]

Through recent experience I found just getting a loan from the bank far cheaper than main dealer finance options (audi) although this was on a used car. The dealer options had options for terminating early etc. but with an unsecured loan I could always flog the car.

[jimmy156]

Thanks for the replies guys,

So if the interest rates are consistent across dealers i'm looking to get the best combination of options/mileage allowance/OTR price for the cheapest monthly payment? Seems simple lol.

As above i think the interest rates on the Used Approved cars are much higher then on new (3% vs. C. 17% from memory) so if we go down the used route (my preferred option) the best bet would be to get a bank loan (interest rate around 6%) rather then dealer finance.

[rehab71]

As a dealer myself the advise I would give is that you are most likely to get the best from the dealer if you buy new as the rate will be supported by the manufacturer so lower then the high street. Also worth noting that if you have a loan secured against the car you have some useful rights should things go wrong. For example halfs and thirds (i wont go in to huge detail here about that but you can PM me or Google maybe) also if you are having issues with the car and the dealer isn't being very helpful the finance house can sometimes get involved on your behalf as they have a financial interest in the car.

HTH

[rehab71]

I would also be extremely surprised if you got the low advertised rate from your bank, regardless of your credit history.

[jimmy156]

rehab71 said:

As a dealer myself the advise I would give is that you are most likely to get the best from the dealer if you buy new as the rate will be supported by the manufacturer so lower then the high street. Also worth noting that if you have a loan secured against the car you have some useful rights should things go wrong. For example halfs and thirds (i wont go in to huge detail here about that but you can PM me or Google maybe) also if you are having issues with the car and the dealer isn't being very helpful the finance house can sometimes get involved on your behalf as they have a financial interest in the car.

HTH

That's the jist that i am getting, but i would imagine that the money saved interest would be more then made up for by the money you loose in depreciation on a new car. But peace of mind/warranty/servicing included does help sway the case for buying new. Its not my decision in the end, but I would be buying used.

Anyone have any idea's on what a "good deal" would be for a nicely specced new MINI cooper?

[rehab71]

jimmy156 said:

rehab71 said:

As a dealer myself the advise I would give is that you are most likely to get the best from the dealer if you buy new as the rate will be supported by the manufacturer so lower then the high street. Also worth noting that if you have a loan secured against the car you have some useful rights should things go wrong. For example halfs and thirds (i wont go in to huge detail here about that but you can PM me or Google maybe) also if you are having issues with the car and the dealer isn't being very helpful the finance house can sometimes get involved on your behalf as they have a financial interest in the car.

HTH

That's the jist that i am getting, but i would imagine that the money saved interest would be more then made up for by the money you loose in depreciation on a new car. But peace of mind/warranty/servicing included does help sway the case for buying new. Its not my decision in the end, but I would be buying used.

Anyone have any idea's on what a "good deal" would be for a nicely specced new MINI cooper?

Sometimes the price of a nearly new is so close to the price of a new you might as well go for the new, especially of you're buying on finance as the total amount payable will be reduced by the lower rate finance.

No idea what sort of price a specy MINI cost, way too much IMO.

[jimmy156]

rehab71 said:

Sometimes the price of a nearly new is so close to the price of a new you might as well go for the new, especially of you're buying on finance as the total amount payable will be reduced by the lower rate finance.

No idea what sort of price a specy MINI cost, way too much IMO.

The used examples i was looking at would be more like 2-3 years old, so a fair bit cheaper then new. But i definitely see your point for a "nearly new" example.