Best way to buy a car

the_gasman_2

I am looking at buying a new car. We currently have a £1500 (part ex) deposit and the car purchase value is £7999 (we will be haggling this price). I am hoping the loan will be a max of £6500...
Can anyone advise of best way to go. I have a mortgage with northern rock and they have offered me a loan at 5.8%...
Having cash will certainly benefit my negotiating for the car...

please help

DavidHM

Don't be certain that paying "cash" will make the dealer more willing to negotiate. He gets paid upfront either way - cash or finance - plus with finance he gets a commission too. Of course the downside is that the APR might be higher. You might be able to shave 0.3% off the APR - up to you if you can be bothered - by shopping around.

What's the part ex? It might be worth more than £1,500 - or you might need to sell it privately to get that £1.5k. It's up to you but if you really want to minimise the cost to change, get shot of the old car separately because at least then you can see what every dealer will want for you to change your car.

What's the new one? Is £8k really the best deal?

Other than that, and avoiding payment protection and making sure you don't take the loan out for longer than you intend to keep the car, you seem to have everything pretty much sewn up.