Impending purchase for MIL - finance questions

[dooosuk]

Looks like I've landed the job of finding the mother in law a new car.

Budget £10k and after me sending her a long list of stuff to look at she seems to like the Focus and Civic's the best, followed by Mazda 3's and Auris'.

Anyway, she'll be a cash buyer and I've never spent more than £7k on a car before and that was a cash purchase also.

Looking on here, Ebay and AT we're looking at dealerships/traders only. No private sales within 25 miles of her for any of the above cars :-s

Anyway, I seem to recall reading that you can take out Finance (in order to hopefully achieve a better sales price) and then pay it off in full straight away. Is this correct? Is it more hassle than it's worth (I live an hour away from the MiL so will be going over for a weekend for purchase a car).

Any advice welcome.

[blongs]

I saw a post on MoneySavingExpert doign this earlier today

http://forums.moneysavingexpert.com/showthread.php...

The update towards the end advises



"I took delivery of the car, and a few days later I phoned the finance company to exercise my right of withdrawal.


They were not happy, but in the end had no issues taking the full loan amount plus a few days interest over the phone."

[dooosuk]

Thanks, I'll run it by her and see what she thinks.

She's not going to be offered much for her trade in despite it being reliable and unlikely to break down any time soon (Mazda 6 with new tyres and brakes in the last 2 years but bashed on both front and rear bumpers)

[rfoster]

This incentive is only really for new cars where the manufacturer provides a bonus for the dealership to hit a registration target generally (usually VW / Audi). You're wouldn't get a similar deal on a used cars, so it kind of depends on whether you're looking at new / nearly new.

[shiftydave]

Quick question on PCP deals for new cars - People always say that at the end of the three years they'll "just give it back and get a new one". If, say, a £2k deposit was given originally on a £15k car, would another £2k need to be stumped up on a new deal? (Assuming the new car and price is identical, and that the existing car is bang-on in terms of the mileage in the agreement).

[dooosuk]

rfoster said:

This incentive is only really for new cars where the manufacturer provides a bonus for the dealership to hit a registration target generally (usually VW / Audi). You're wouldn't get a similar deal on a used cars, so it kind of depends on whether you're looking at new / nearly new.

So if buying a 2011/2012 Focus from a dealership for £8500 to £9500 they'll be no price difference for cash/finance?

[Pugland53]

shiftydave said:

Quick question on PCP deals for new cars - People always say that at the end of the three years they'll "just give it back and get a new one". If, say, a £2k deposit was given originally on a £15k car, would another £2k need to be stumped up on a new deal? (Assuming the new car and price is identical, and that the existing car is bang-on in terms of the mileage in the agreement).

If you exercise your right to hand it back at the end of your three year term then yes you will have to stump up a deposit on the new car. I change my cars every 18-24 months and have PCP'd many cars, and have never handed back. I usually sell privately to get the maximum deposit back toward my next car, although if the p/x offered is reasonable I will p/x the car. I never put a small deposit down though, as I don't like being in negative equity when driving it out of the showroom.