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      05-15-2013, 10:36 AM   #1
webwysard
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A question about car finance

Hi All,

I believe if you buy a car on finance there is a posibility that you get a decent discount than paying cash. So what I'm thinking is to get a car on finance and then pay it off afterwards or am I missing something here ?

Please advice.
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      05-15-2013, 10:46 AM   #2
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Yes you can pay it off. Obviously loan arrangement fees come into it and you usually have to pay a months interest on top to settle early. On the flip side you can get better deals by taking finance.
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      05-15-2013, 11:34 AM   #3
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No harm in just asking what the deal would be if it was cash. The difference might be so small that it's hardly worth the hassle of finance.
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      05-15-2013, 02:39 PM   #4
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I'll only be going for the finace if there is a decent difference than paying cash.
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      05-15-2013, 03:11 PM   #5
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I have found that getting the large discount only seems to,work with finance. For example I just bought a new c class coupe, I managed to get 14% from the dealer and then by taking the finance I got a 2300 towards my deposit and 4.6%.. If I would have paid with cash I would not have got the 2300!!!

A friend of mine just bought a car with cash and got 500!!! Used yes but he tried everything and they just wouldn't budge!!! If he took the finance 1500 towards the car?? He hates finance so didn't take it..

If you can get more off take it and pay it back straight away..
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      05-16-2013, 01:08 AM   #6
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I bought a golf R last autumn, I think VW call it manufactures support they gave me 2000 towards the deposit and a 3yr service pack for 149 the maximum deposit was 30% ,I guess they want you to borrow as much as possible and get the money back over the 36 months term.

The service pack is usually 329 , Check exactly what the conditions are I put it on finance and then used the 14 day VW right to withdraw and kept the 2k and the 180 saving on the service pack with no set up or end purchase costs .


I am 99% sure all manufactures do it to get you into there cars, It seams it is on top of any discounts you negotiate when buying , Get the lowest price then stick it on finance ,I think the key is to get it to cancel in the first 14 days using the right to withdraw, I think they have to right the manufactures contribution off.

The VW sales guy said please dont cancel in the first 90 days because the manufacturer penalises the dealer probs because they are cautious Dealers or salesmen use it as a tool to get extra sales .My Dealer really Pi$$ed me off so it gave me great pleasure to settle up early and hope he had his arse chewed freaking little weasel.


Check the terms and even call the finance company to check .

Weird I found my self looking at BMW finance deals have a look at the manufactures contribution on a E92 its like 6k ,I realise it is at the end of it cycle but BMW are obviously keen to get them gone , They even offer 5% towards all most everything on there books as a deposit contribution.

Hope this helps
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      05-16-2013, 05:18 AM   #7
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Cars dealers are essentially loan shops. Paying in cash doesn't make a lot of sense any more. If you have the cash, take the finance and pay it off the next month

If you look at the BMW website you'll see that finance deals have large contributions towards the purchase price. You probably don't get those deals if you pay cash.
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      08-24-2013, 12:11 AM   #8
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Dealerships say they're reducing dealer finance markup

Informal reports are emerging that an increasing number of dealerships are beginning to scale back their markups on aftermarket insurance and financing. Have you heard about this? Moreover, the dealer finance markup, as well as dealer insurance markup, could be pretty high as often as not.
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      08-24-2013, 10:25 AM   #9
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you could just rent it (lease, contract hire), instead of blowing all your cash on one thing, no disposal issues, small monthly outlay majority of cash in hand

depends if its a long-term keeper and you get attached to them
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      08-24-2013, 01:42 PM   #10
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Originally Posted by ian_m View Post
you could just rent it (lease, contract hire), instead of blowing all your cash on one thing, no disposal issues, small monthly outlay majority of cash in hand

depends if its a long-term keeper and you get attached to them
It really depends on the deal.

Some of the lease deals are great, but many work out more expensive in the long run.
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      08-24-2013, 02:23 PM   #11
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It really depends on the deal.

Some of the lease deals are great, but many work out more expensive in the long run.

obviously, it was a suggestion and as we haven't been told what he is after you cannot go any further

but as an example my e90 330 was 41000 i have it for four years at 25000 miles pa, so it goes back with 100 000 miles on, it will cost in rentals 33600.
i don't pay the road tax and i don't maintain it as its in the rentals inc tyres.

I don't think, even with fair wear and tear, that if i blew 41000 in cash and sold the car in four years with 100 000 miles on i would get back 7400 plus I'd had to maintain it to a reasonable standard and pay the road tax.
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      08-25-2013, 04:24 AM   #12
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Quote:
Originally Posted by webwysard View Post
Hi All,

I believe if you buy a car on finance there is a posibility that you get a decent discount than paying cash. So what I'm thinking is to get a car on finance and then pay it off afterwards or am I missing something here ?

Please advice.

Using finance and getting a dealer contribution is normally only on new cars, and right now buying a new car a private buyer makes absolutely no sense whatsoever, not when you can contract hire them for far less than the car will loose over the same period using cash.

New cars are for companies who can write the purchase off and contract hire firms, even with the full 15% discount it still doesn't make sense as a private buyer.

If you want new than hire it for 2 - 4 years, it will be cheaper.

All these dealer contributions were brought in to try and get the pcp type agreements (loan with a balloon payment at the end) closer to the contract hire figures, they are closer but still not there yet.

Unless you keep your car for around 7 years or more, 'buying' new is a bit foolish.
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      08-25-2013, 08:55 AM   #13
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You're all replying to a very old post that was bumped by a spammer... FYI...
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      08-25-2013, 10:36 AM   #14
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You're all replying to a very old post that was bumped by a spammer... FYI...
Oh yeah.

Cheers.
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      08-29-2013, 05:15 AM   #15
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Informal reports are emerging that an increasing number of dealerships are beginning to scale back their markups on aftermarket . Have you heard about this? Moreover, the dealer finance markup, as well as dealer insurance markup, could be pretty high as often as not.

I will must concern with you and think that they would be must help me to get the nice deals over here.
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