Any - Getting the best discount on a new car

Honest John Back Room » Motoring discussion
View Threaded
Thu 10 May 2018 11:58
Any - Getting the best discount on a new car - nick62

I have read several posters on here who have negotiated a good discount on a new car by agreeing to a PCP deal then cancelling it, but still getting the original price with cash.

Can someone "in the know" elaborate on how this is best achieved please? I have always paid cash for cars up to now, but in the crazy world we live in this is obviously not the way to go.

Thanks for any advice.

Reply | Report as offensive | Link
Thu 10 May 2018 12:48
Any - Getting the best discount on a new car - FoxyJukebox

Yes indeed-it's always interesting to hear some latest "deal stories". Excellent.

I would like to hear from anyone who took advantage of a PCP deal or indeed an HP deal but paid a large % of the costs in cash up front-purely to take advantage of any bells and whistles.

Another point-when getting into these deals I recently heard a "man in a pub" saying he got a better trade in for his older vehicle when sigining up for a PCP compared to a cash only sale?

Comments welcome!

Reply | Report as offensive | Link
Thu 10 May 2018 14:36
Any - Getting the best discount on a new car - SLO76
Dealers are incentified via commission to push PCP style deals. It increases the regularity in which customers buy cars, it gives them a hold over you when you want to change via possible charges for damage which are “waved” if you take another car from them and it offers higher rates and greater profit with typical PCP finance rates 2-3% higher on new cars than normal finance.

It therefore makes sense when negotiating to allow the dealer to quote a nice fat PCP or finance deal before hammering them for a discount. Then at the last minute (after you have a written quote) you agree to buy but will be sourcing the funds yourself, they cannot legally make you pay more for doing so today.

The trick of hoovering up a manufacturer PCP cash back incentive is to read the small print on the quote first. Some have clauses which prevent you from paying it off early and others will claw back the cash back money if you settle before a certain date. Most however can simply be cancelled and settled off. The dealer will have their finance commission clawed back however so don’t expect any goodwill and I’d advise going to another one for servicing and warranty work. Basically it’s all down to the small print. I believe Skidpan has taken advantage of this before with good results so hopefully he’ll advise.

Further to this it’s a good idea to search the net for prices then call round local dealers to see if one will price match, they often will simply to make up numbers even if there’s zero profit in it for them. You’ll have to get shot of your trade in yourself to get a decent price however.

Edited by SLO76 on 10/05/2018 at 14:38

Reply | Report as offensive | Link
Thu 10 May 2018 14:42
Any - Getting the best discount on a new car - nick62

Thanks SLO, just the type of information I was after. I also note your advice re. goodwill if the salesman has been "done-over" for his/her PCP commission.

Reply | Report as offensive | Link

Our honest used car pricing is a little bit different to all the others. You can get to our values through make or model - you don’t have to follow a prescribed route. Plus, it’s live, which means we can react to changes in the market quicker than any printed price guide.

Honest Used Car Prices

From which small car to buy at which price point to the best UK-built cars, our Top 10s have the lot. Click now for your shortlist.

Unsure of what to buy? Our Top 10s are here to help you....