New Car on 0% finance. Passatt, Audi A4, Mondeo, Golf, Mazda 6

1jim

yes but by using a discount broker I managed to take advangtage of a discount price (was a much better price than I managed to negotiate myself...even by telling them I was going to walk away and get it from somewhere else, they gave me the line that the car could not be bought for the price I quoted, that the car did not exist etc etc etc) the discount broker passed my details (by chance) to the same dealership in Nottingham and as I knew they had 0% finance on the deal I asked for it and got it. Granted most customers probably wouldnt go down the broker route and ask for the 0% deal but I did and got it. I can honestly say that I got a very good price by using the broker-much lower than that which I tried to negotiate- and got a 0% deal, I am convinced I saved money this way- the money I had to fund the car was moved to a high interest savings account and over the 3yrs has added interest,
0% deals may not always work out cheaper but they can if you do your homework

Lemonade_Pockets

Are you talking about a new car? If so for the purposes of this discussion it is largely irrelevant. New car finance and used car finance quite often work completely differently.

If your talking about a used car, i'll say it one more time.
The broker negotiated some discount on your behalf. Great happy days, praise the lord.
Lets pretend that after this discount the dealer makes a thousand pounds if you were to pay cash. But you are aware the dealer is also offering 0% finance so you insist on that. Now the dealer has to pay a a finance subsidy of lets say £500. Net result is the dealer makes £500.

If the dealer is happy to make £500 with you buying it on 0% he would be happy to make £500 if you paid cash. If you paid cash this would remove the need for to pay the finance subsidy therefore the dealer could sell the same car for £500 pound less and still make the same profit.!!!!!!!!!

So to summise you have paid £500 for the privilege of having 0%. I.E ITS NOT REALLY 0% IF YOU HAVE TO PAY EXTRA FOR IT.

Like i said excluding credit cards and my parents i have never found any finance company that lend money for nothing!

Now if the interest on a "normal" finance deal was going to be more than £500 then yes it would work out cheaper to do the 0% option.

However these figures are for illustration purposes only. In the real world you tend to find that its as long as it is broad. So its better not to limit yourself to dealers that are offering 0% and have more choice.

welshman10

King_Of_Bling wrote: »

A4 any day, thats a propper poontang magnet

You'll have to excuse me, I don't speak street

Brian_Bullocks

welshman10 wrote: »

You'll have to excuse me, I don't speak street

Get an A4 and you get a free sheep to keep you warm all night.