0% Finance deals on new cars

tightasaduck's

Thinking of buying a new motor. I have the money needed to change up in my savings, but can get 0% over 3 years, so I was thinking of keeping my money in the savings a/c. However, I would obviously need to transfer the monthly repayment to my current a/c each month. Ok, it's not that much hassle, I suppose, but is there an easier way? I'm assuming there is no savings a/c that allows you to set up a DD payment from it and this has to be done through a current a/c.

Has anyone on here already done what I'm proposing? Interest rates are poor, but over the three years, even with the capital amount invested decreasing each month, I may not make a lot, but it would still be better than nothing.

missma

Never done what you have mentioned, but would just be wary that u may get a better discount paying cash up front. Also are you sure there are no hidden set up fees for credit. Also is that the car paid or is there a final payment. I have been told gr8 deals by salesmen in the past and they have ended up too good to be true.

tightasaduck's

missma wrote: »

Never done what you have mentioned, but would just be wary that u may get a better discount paying cash up front. Also are you sure there are no hidden set up fees for credit. Also is that the car paid or is there a final payment. I have been told gr8 deals by salesmen in the past and they have ended up too good to be true.

I'm trading in a car and getting a discount off the new model too. I know the trade value of my old car, so can see the discount off the list price of the new one i.e. it's not a con trick. No hidden fees for credit - no set-up fee for 0% finance and yes, it will be paid in full and the car mine after the three years. Just wondering if it would be worth the hassle to make myself a few pounds over the three years or not?

seatzie

well lets say for talk sake your balance on 0% was £5000 if you put that away for 3 years at 3% max you'd make would be £463.50 ASSUMING you don't touch the £5k, if you're dipping every month for the repayments I'd still expect to be a couple of hundred quid better off after year 3 I'm sure there are more atuned financial wizards out there who would give you exact figures on what you'd be left with after taking out your monthly payments if you can give us an idea of the figures involved

obviously if its not in an ISA and you're a taxpayer then you'd be getting basic rate tax knocked off the interest too

first advice of Martins I ever did was similar only on a Mortgage, 60k mortgage with 6% cashback, stuck it in a high interest instant access ISA to feed payments if required

motorguy

missma wrote: »

Never done what you have mentioned, but would just be wary that u may get a better discount paying cash up front. Also are you sure there are no hidden set up fees for credit. Also is that the car paid or is there a final payment. I have been told gr8 deals by salesmen in the past and they have ended up too good to be true.

0% finance deals are usually 'sponsored' by the manufacturer directly, therefore shouldnt impact the discount available from the dealer. Some manufacturers handle it differently, preferring to discount their cars more heavily - this however has a negative impact on resale values. 0% APR deals are a way of using smoke and mirrors to avoid having to discount the car further, and thus avoid impacting residuals so much. BMW handle it differently - they off a 'finance contribution' if you use BMW finance of say, £1500. This allows them to discount the car further AND avoid using 0% finance headlines that are more often associated with non premium brands.

If its listed as a 0% APR deal, which i'd say it is, then the APR calculation includes any costs, therefore, by deduction, there wont be any fees.

There are genuinely great deals out there at the moment, and if a 0% APR deal works for the O/P then its a great way to save money on the car purchase.

tightasaduck's

pgilc1 wrote: »

0% finance deals are usually 'sponsored' by the manufacturer directly, therefore shouldnt impact the discount available from the dealer. Some manufacturers handle it differently, preferring to discount their cars more heavily - this however has a negative impact on resale values. 0% APR deals are a way of using smoke and mirrors to avoid having to discount the car further, and thus avoid impacting residuals so much. BMW handle it differently - they off a 'finance contribution' if you use BMW finance of say, £1500. This allows them to discount the car further AND avoid using 0% finance headlines that are more often associated with non premium brands.

If its listed as a 0% APR deal, which i'd say it is, then the APR calculation includes any costs, therefore, by deduction, there wont be any fees.

There are genuinely great deals out there at the moment, and if a 0% APR deal works for the O/P then its a great way to save money on the car purchase.

Yes, but the dealer is often required to make a 'contribution'.

Anyway, thanks for the replies, Folks. I'm sorted now and will make a bit of money over the 3 years, which is better than ' a poke in the eye with a sharp stick', as they say.