Dealer Deposit Contribution

mrcurly1975

What exactly is a 'Deposit Contribution' that a car garage is offering as part of a finance package on a new car?

Is this something they claw back through the final price of the car? Is it their way of attempting to put people off trying to haggle?

If the price of the car is £19265 otr and they want 50% deposit to qualify for 0% finance and they are offering £1000 deposit contribution does this mean I have to pay £8632 instead of £9632??

Hintza

If the car is priced at £19,265 less DDC (£1k) = £18,265 then you pay 50% of that, I would think (but they might skin the cat differently) talk to them.

But why not try the likes of Drive the Deal and see what the real price is.

disco.stu

mrcurly1975 wrote: »

If the price of the car is £19265 otr and they want 50% deposit to qualify for 0% finance and they are offering £1000 deposit contribution does this mean I have to pay £8632 instead of £9632??

Yes, you are correct. Rather than take £1,000 off the price of the car, they are giving you £1,000 towards the price of the car. For many people it means exactly the same thing, but in your case it is slightly different, as if they discounted the car by £1,000 (ie - £18,265) you would have to pay a deposit of £9,132.50, which is £500 more than you have to pay with a deposit contribution.

mrcurly1975

I think that clears it up.

I am still going to go in armed with a list of options and extras I want around about the 28th of this month and see what I can get. The target price for this car is £18,100 anyway so I still want money off as well or no deal.