What sort of kick back do traders get for finance?

[eltax91]

Hi chaps

In the market for a new (to me) car. Seen a few at forecourt type traders. Shopping in the £15k region.

I've got the cash to do a straight deal, but question is, will I get a better deal if I finance some or all of it? I'd settle up within a couple of weeks to not pay any interest.

How much more will a trader move on the price of finance is waved under their nose?

Also, when i settled in the cooling off period, does that screw the trader on his fees I assume? The car is a performance one with a reputation for going pop, so I might need to be leaning on them if it goes wrong and I don't want to be that guy who removed all his goodwill.

[Nickp82]

If the car you are looking at is known for issues then financing it through the dealer could be a good move as should you need to reject it you have a bit more protection on your side and would be able to initiate the rejection via the finance house.

In terms of the dealer moving on the price it is unlikely to be massive as car finance is not the earner it once was but should act as a bit of encouragement for him/her to do a deal

[Nickp82]

Oh and yes the dealer is likely to have any finance commission debited if you settle off during the 14 day cooling period.

[Toaster Pilot]

Nickp82 said:

If the car you are looking at is known for issues then financing it through the dealer could be a good move as should you need to reject it you have a bit more protection on your side and would be able to initiate the rejection via the finance house.

In terms of the dealer moving on the price it is unlikely to be massive as car finance is not the earner it once was but should act as a bit of encouragement for him/her to do a deal

You'd get the same protection by paying part of the balance on a credit card

[Ashtray83]

I recently bought a golf up for 14,995 they would only discount 250 if I paid cash but if I took finance I could take it for 14000
Needless to say I took the finance paid the first month then settled in full worked out around 14150 total

[steve-5snwi]

Commission depends on loan amount, term and type (pcp or hp) and the finance company, it also gets taken back by the finance company if you settle it within so many months.

[ScoobyChris]

Ashtray83 said:

I recently bought a golf up for 14,995 they would only discount 250 if I paid cash but if I took finance I could take it for 14000
Needless to say I took the finance paid the first month then settled in full worked out around 14150 total

Interesting as whenever I've asked whether taking the finance would open up any further discounts on the price for used cars, the dealers have always told me no and that irrespective of the method of payment the price would end up the same (some of them cite the FCA as the reason but I'm yet to be convinced on that). For new cars, the manufacturer incentives to take finance do seem to be readily available though.

Chris