I'm looking at getting a 335Ci SE on PCP in the next few months. As was to be expected I've had a load of conflicting advice on how to go about getting the best deal.
Basically I've got three options:
1. Haggle a price with a finance company (freewaycars.co.uk and car-finance.net have been recommended), then go to the dealer and get them to match/beat it.
2. The opposite of the above - haggle with the dealer then get the finance company to match/beat it.
3. Haggle a price with the dealer on the basis that I'd be paying cash, then go back to the PCP company and get them to finance a deal based on the discounted cash price agreed with the dealer. Then when it's time to drive away, the finance company make the lump sum payment to the dealer on my behalf.
Obviously with 1 and 2 I could go back and forth all day.. week.. month..
Am I generally better off avoiding the dealers or the finance companies? I don't like either on principal but know it's a necessary evil to deal with one of them (or spend years saving up). Is there normally any glaring differences between the T&Cs on finance company vs dealer PCP deals I should watch out for?
Any other advice on the finance side of things? I know I'm likely to get conflicting advice again but the more there is the better.
Thanks
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Get a bank loan and then haggle-cash sale.
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You might have a problem getting a discount for cash as the dealers make money from selling finance. More likely to get a discount if getting finance from the dealer which is expensive we know.
What about asking dealer for finance (to get the discount) taking the finance then paying it off after a short time ?
Check the penalties though as the dealer will probably lose his bonus if the finance does not run full term and may have some knock on effect.
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Basically I've got three options:
And repeat the 3 options with many garages and many finance companies
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You may find it is worth asking both the dealer and finance company about a balanced payments finance plan which is similar to a PCP but has much lower set up charges and the interest is not front loaded so if the vehicle is changed before the end of the term the finance balance is likely to be lower. The monthly instalments will also be lower. This type of agreement normally requires you to borrow in excess of £25K. All BMW dealers and many finance houses can do this scheme but may deny it as they make much less from it as the finance charges are lower and therefore their commission is lower.
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Thanks to all for the advice - understand the options now.
Taking a different angle on the question, what experiences have people had with dealers vs finance houses?
I know it's impossible to answer this objectively, but in general is the stereotypical image of the car sales world correct? I get the impression that:
- A dealer's salesman will lie through his teeth, beg, chase you around, etc. (this has been my experience with dealers so far, anyway).
- The finance houses are generally cheaper and friendlier on the sales side of things, but may let you down on the after sales care.
Basically, if dealer and finance company end up at the same price, who's the safer bet?
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