Car discounts and finance

SemperFi

Hi.

First time poster here

I'm in the process of buying a new car and have been offered an excellent deal on HP. £3.5k discount. Now, the deal is great, but the HP thing isn't working for me and I'm looking at going on their PCP scheme.

Car price £20k. Discounted price £16.5k.

Is the dealer obliged to give me the same discount regardless of the finance method? How about if I pay cash?

Thanks for your time.

DealDrivers_company_representative

They aren't obliged to give the 'same discount' - it depends who theya re using to fund their HP schemes and pcp schemes...they could be via sep' funders so they'll need to work their figures to enable themselves to still earn some profit for the car price and from the sale of finance to you.

When looking at the overall deal don't get hooked up too much just on APR%'s...you ened to look at the balance between APR, residual value prediction (in the pcp quote) and monthly payments. There are lots of low APR schemes around but they set tragically low residuals to offset it (or they'll ask for full list price on the car itself rather than offering a car discount), so you lose out one way or the other. Our own funders APR is currently 7.9% for advances over £10k but the repayments work out less per month on most quotes than some mfr's schemes offering lower APR's.... because the residuals are set more sensibly and we can combine a lrger discount on the vehicle.

Rule of thumb...there's never anything for free! You'll pay for it somewhere along the line!