Finance or Pay cash!!!!!!!!!!!!!!!!!!!!!!!!1
Discussion
Hi Guy`s.
Just throwing out a rather large net really, any feed back will be read with great interest.
Me and the wife are looking at a car that we can afford to buy with cash, this is from a franchised dealer, the ultimate driving machine some say
, we have been offered finance in stead of paying cash out right, could any one offer any help, please.
Is it better paying cash or getting finance.
What are the pro`s and con`s.
Thanks in advance chaps.
Regards
Dave S
Just throwing out a rather large net really, any feed back will be read with great interest.
Me and the wife are looking at a car that we can afford to buy with cash, this is from a franchised dealer, the ultimate driving machine some say
, we have been offered finance in stead of paying cash out right, could any one offer any help, please.Is it better paying cash or getting finance.
What are the pro`s and con`s.
Thanks in advance chaps.
Regards
Dave S
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Sorry, thought that was the place for using up spare punctuation.
In answer though, often you get a better deal if you take out the finance so play them at their own game and get the best deal you can then pay off the finance early. Just check early payment fee's against the saving.
Sorry, thought that was the place for using up spare punctuation.
In answer though, often you get a better deal if you take out the finance so play them at their own game and get the best deal you can then pay off the finance early. Just check early payment fee's against the saving.
I am afraid you have to do the sums - work how much it is going to cost you in total by both methods - include how much you'd lose in interest, what they are willing to do for cash etc.
For last three cars I have brought - 1 was financed because it was a manufacturer's 0% deal and there was not much extra discount for cash - and keeping money in savings gained about £1k. The other two were cash because finance deals available would have cost more.
However dealers make quite a bit from the finance options - so expect them to push it
For last three cars I have brought - 1 was financed because it was a manufacturer's 0% deal and there was not much extra discount for cash - and keeping money in savings gained about £1k. The other two were cash because finance deals available would have cost more.
However dealers make quite a bit from the finance options - so expect them to push it
Interest rates on dealer finance on second-hand cars are higher than for new. If you really want that car, but also finance, then look at a bank loan. You may also find, as we did, that buying new on finance can be pretty good.
As has been said. Do the sums. We also got 3 years servicing on our new cars by taking the finance, and on mine, an extra £1k discount.
As has been said. Do the sums. We also got 3 years servicing on our new cars by taking the finance, and on mine, an extra £1k discount.
Edited by fatboy b on Sunday 8th December 09:13
Hub said:
What is your personal preference? Pay the cash and forget about it or have the additional monthly outgoing?
I always prefer cash, so I hate that they push finance so hard and don't always offer such a big discount!
There was a thread the other day - if you have the cash but there's a better deal via finance, take the finance and then settle the finance after the first payment has gone out.I always prefer cash, so I hate that they push finance so hard and don't always offer such a big discount!
fatboy b said:
Interest rates on dealer finance on second-hand cars are higher than for new. If you really want that car, but also finance, then look at a bank loan. You may also find, as we did, that buying new on finance can be pretty good.
As has been said. Do the sums. We also got 3 years servicing on our new cars by taking the finance, and on mine, an extra £1k discount.
That's not true I'm afraid as I can do both 1.99% flat on new and used vehicles upto a year old, then 2.30% on anything upto 8 years old.As has been said. Do the sums. We also got 3 years servicing on our new cars by taking the finance, and on mine, an extra £1k discount.
Edited by fatboy b on Sunday 8th December 09:13
Fort Jefferson said:
How can financing a car, ever be cheaper than buying it cash?
Interest rates on savings are rubbish, so you're going to pay more interest on a loan.
0% finance offered by a multitude of car and bike dealerships, or 0% finance credit cards, coupled with a Nationwide current account getting 5% on all deposits. That's kind of how.Interest rates on savings are rubbish, so you're going to pay more interest on a loan.
Eski1991 said:
Fort Jefferson said:
How can financing a car, ever be cheaper than buying it cash?
Interest rates on savings are rubbish, so you're going to pay more interest on a loan.
0% finance offered by a multitude of car and bike dealerships, or 0% finance credit cards, coupled with a Nationwide current account getting 5% on all deposits. That's kind of how.Interest rates on savings are rubbish, so you're going to pay more interest on a loan.
Nationwide said:
"FlexDirect gives you access to 5.00% AER (4.89% gross p.a.) interest on your in-credit balance up to £2,500"
At that end of the market I would probably just pay the cash - especially as you have 2500 sat in your account.Gassing Station | General Gassing | Top of Page | What's New | My Stuff