0% car finance - who is trustworthy?

lawtz04

Hi guys

I maybe being a bit niave here but here goes. In august i am looking at getting a new car, probably mostly on finance.

Im aware vauxhall do a 0% interest deal but wondered if anyone else did? Preferably on used cars as i know cars lose alot of value in that 1st year. So ideally a car 2-3 years old.

I googled 0 car finance and a host of things came up such as 0carfinance.co.uk.

Has anyone experience with things like this and car help me out. I suspect no-one trustworthy does 0% on 2nd hand cars but worth an ask!

motorguy

0% finance deals on new cars happen because manufacturers subsidise the finance company (often their own finance company)

If dealers of used cars are offering 0% finance its because they are adding in the interest charges somewhere else - usually by asking a lot more than other dealers for the same car. Someone has to pay the interest and indirectly its the customer

Better to get the best finance rate you can for the loan - use the appropriate section here on the MSE site, THEN find the car you want and negotiate hard on the discount.

Kilty_2

I'd also imagine that on 0% finance deals from manufacturers you are paying more for the car than you otherwise could (ie close to full list price)

samwsmith1

0% is available on most Mazda2 models with a 50% deposit - http://www.mazda.co.uk/showroom/mazda2/mazda2-offers/

motorguy

Kilty wrote: »

I'd also imagine that on 0% finance deals from manufacturers you are paying more for the car than you otherwise could (ie close to full list price)

Not necessarily. Its usually the manufacturer inject 'extra' cash into the deal to cover the finance costs.

JQ.

The only way you compare car prices is on the TOTAL COST. Just going for the best finance rate does not mean you are getting the best deal. If you're looking at 2-3 year old cars with 0% finance, then those finance costs will be factored into the price you pay.

Buying a car based on the best finance rate you can get is rather short sighted. As you've correctly highlighted one of the largest costs of car ownership is depreciation, so that's definitely something you can look at. Sites such as Whatcar have depreciation indices on them so worth having a look there.

Get a shortlist of cars you like then look at all the costs:

MPG
Car Tax
Depreciation
Finance
Price
Insurance
Servicing
Maintenance
Tyre Costs
etc

That way you can calculate the total cost of the car over a set period in time, such as 4 years.

Flyboy152

lawtz04 wrote: »

Hi guys

I maybe being a bit niave here but here goes. In august i am looking at getting a new car, probably mostly on finance.

Im aware vauxhall do a 0% interest deal but wondered if anyone else did? Preferably on used cars as i know cars lose alot of value in that 1st year. So ideally a car 2-3 years old.

I googled 0 car finance and a host of things came up such as 0carfinance.co.uk.

Has anyone experience with things like this and car help me out. I suspect no-one trustworthy does 0% on 2nd hand cars but worth an ask!

Why August? Are looking to take delivery in August, or just looking in August?

Flyboy152

Kilty wrote: »

I'd also imagine that on 0% finance deals from manufacturers you are paying more for the car than you otherwise could (ie close to full list price)

As always the most important factor when considering what method or product to use, is how much does the whole thing cost. Very often some low rate finance, 3.9% APR for example, can work out cheaper than 0% finance, if you can get the on-the-road price right.

Occams_Razor_2

not only is there no such thing as 0% interest, there is actually no way you can have 0% interest. there is financing involved, and somewhere along the supply chain someone is paying it.

£10 @ 0% isn't real. there is only the question of what the real value of that £10 is. most probably 7 or 8.

LandyAndy

samwsmith1 wrote: »

0% is available on most Mazda2 models with a 50% deposit - http://www.mazda.co.uk/showroom/mazda2/mazda2-offers/

I did that with a Mazda6 a couple of years ago and still got a healthy discount off list.