Car Finance - Whats the best way?

MTC

Hi All,

I've had a look through the main site and chat forums and I can't find any articles by Martin regarding the best way to finance a car. I know this is a complicated subject, but surely the majority of people are in the same boat when it comes to this?

Basically, they already own a car (either fully paid for or with some outstanding finance) and they want to trade the car in for a new/used one and take out more finance to pay for it.

Now, my question is - How do we get the best deal from the car dealers regarding finance? I know we need to shop around, consider getting a personal loan at lower APR, etc etc.

The problem is that quite often, if you don't take out finance with the car dealer, they detract from the price of your existing cars trade in value to compensate. So you might save on APR by paying with a personal loan, but lose on your trade in value.

My idea is this - what if we tell the dealers that we will take their finance (APR as high as they like) and they give us a discount off the original price of the new car and a decent trade in for our old car, because they think they will make their money from the high APR finance they are selling us.

But does anyone know if there is a clause in the finance contracts that gives a 7 day or 14 day "cooling off period" that would then allow us to pay the balance that we have agreed to finance with a personal loan, with much lower APR rates, thereby with lower monthly payments, and much less interest?? I know other contracts that we sign (insurance, credit cards etc) give us a statutory "cancellation" period, during which we can cancel the agreement, and not be penalised.

Does anyone know if this is feasible? Or am I just thinking wishfully here?!

Be good to get some thoughts on this - I'm thinking of buying a newer car in the next few months...

Martin - can you write an article on this for us?? I think there are many other people in the same boat as me, who are sick and tired of getting ripped off by car salesmen!

Thanks.