Buying car on finance cheaper than cash ?

letiss7

Hi all,

This is my first post on the motoring forum so please be gentle.
Just negotiated a price on a Hyundai ix35 with a local dealer using a quote from drivethedeal.com .
The dealer has given me 2 options one is for cash and one is for a 3yr finance deal.
The finance deal is working out (according to the salesman) at about £800 cheaper overall.
Has anyone else come across that situation ?

Also if I go for the cash deal, I suspect the salesman has his figures wrong, When would I be expected to make the final payment for the car ?

Quentin

Finance deals often are cheaper than cash - the garage get a good commission off the finance company.

colino

You will have to lay the deal out, with all of the costs, to accurately work it out. If there is enough fat in it for commission to be a factor, then the drivethedeal deal isn't sharp enough.

daveyjp

You can't offer different prices based on how the car is being paid for, but finance can result in the car being cheaper as there are sometimes offers based on taking finance.

Mercedes are currently offering £1,000-2000 deposit on PCPs and drivethedeal prices often included finance incentive discounts.

If I wanted to pay cash I'd go for an extra £800 off, if it wasn't agreed I'd go to the broker.

letiss7

Just did some quick maths and found the figures didn't add up so I rang the dealer and found out that the salesman gave me the wrong monthly figure. With the new figure the finance deal works out £2300 more than the cash deal. That's more like the figure I would have expected
With regards to my other question.
I've paid £500 deposit to secure the deal.
When should I expect to pay the remainder ?

Herzlos

Have you done the figures yourself?

It's usually an option to take the finance, and then cancel it in the cooling off period, paying up the cash at that point. You'll have to pay some minimal fee but get the car for the finance figure.

You could always offer the salesman the finance figure in cash and see what he says, using the above as bargaining.

OddballJamie

letiss7 wrote: »

Just did some quick maths and found the figures didn't add up so I rang the dealer and found out that the salesman gave me the wrong monthly figure. With the new figure the finance deal works out £2300 more than the cash deal. That's more like the figure I would have expected
With regards to my other question.
I've paid £500 deposit to secure the deal.
When should I expect to pay the remainder ?

I paid the remainder when I collected the car on a debit card.
Worth giving the bank a heads up just incase of any problems.

almillar

The finance deal is working out (according to the salesman) at about £800 cheaper overall.

I'd be wanting to do the maths myself!
What's the cash price, what's the final finance price, with all the fees included. Then you ask the question, what could I do with all that cash if I didn't sink it into a car.

Mobeer

You need all the figures written down and guaranteed, then a chance to use a spreadsheet to figure out if the dealer is managing to miss something out.

letiss7

The finance deal is working out about £2300 more than buying cash.
Looks like I should be paying the balance when I collect the car.
Thank you all for your replies.