One for finance/dealer boys

Honest John Back Room » Motoring discussion
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Wed 6 Jul 2005 10:17
One for finance/dealer boys - Happy Blue!
I've only ever bought a car with cash, never borrowed - ever.

So, I walk into a dealers to buy a car for £20k list. Lets say I can get £1500 discount for cash.

Would I get more or less discount if I did a finance deal and at what point does a low finance deal become more cost effective that paying cash?


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Espada III - well if you have a family and need a Lamborghini, what else do you drive?
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Wed 6 Jul 2005 10:32
One for finance/dealer boys - Armitage Shanks {p}
I think you just have to get in there and crunch the numbers for the answer! Remember that, last year, Ford made more money from financing their car sales than they did from building them. They'd rather sell you finance and a car than a car for cash!
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Wed 6 Jul 2005 10:35
One for finance/dealer boys - Altea Ego
It entirely depends on the car you are buying. You chances of a discount under any circumstances depends on the car make and model being sold.

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Wed 6 Jul 2005 11:28
One for finance/dealer boys - blue_haddock
Right this is a bit of a "how long is a piece of string" thread.

Theoretically you should get the same discount regardless of payment method, you may possibly get a tiny bit more discount if having finance as the dealer will get a kickback from the fiance company but usually most dealers will keep that as part of their profits and say they make nothing off the finance!

Remember that the dealers finance is probably not the lowest rate you can get - the minimum i can do is about 4.5% flat (9ish APR) There are lots of firms doing personal loans for a lot less than that.

Only time dealer finance can be beneficial is if the manufacturer is supporting a particular product and offering Zero or discounted finance or a depeosit contribution.

At present Toyota are offering a £1000 contribution to your deposit on certain models but they balance this out with not having the best rates but if you have the minimum amount (£5k) over the minimum period (2 years) it does work out to roughly 0% finance. If you were to pay the finance off early and save on interest then it would be a genuine saving although a bit of a ball ache to save a few hundred quid.

You would be much better to sort out your own low rate finance first then go through a broker or something similar to get the best price on the vehicle rather than try to squeeze a deal out of a retail dealer.
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Wed 6 Jul 2005 12:10
One for finance/dealer boys - Happy Blue!
Thanks, just wondered what the 'truth' was! Now I have it!

Just remembered that I lied. In 1986 I bought a Fiat Uno on 0% finance for one year. Haven't bought a Fiat since!
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Espada III - well if you have a family and need a Lamborghini, what else do you drive?
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