Finance used car - bank loan vs dealer finance

serenade2015

Hi,

I am thinking of financing a used car via bank loan, but a lot of websites I come across are saying you get better discount if using the dealer finance, they are not likely to negotiate if you say you have the money in the bank.

Also read that if you lead the dealer to believe you are interested in their finance and then you get your discount deal and then drop the bomb that you have your own finance, surely they can then say the discount was linked to their finance?

Any experiences on this?

Car price rough price £16,000, what sort of discount could I expect or what is the norm % discount to start off with?

Hintza

Go and look at the online brokers ; drivethedeal etc and that will tell you what you should be paying. Some discounts are finance specific but you need to ask when you can clear the finance and you might find it worth clearing the finance with a bank loan.

You will just have to keep running the numbers and all the permutations to figure out what is best.

Herzlos

Bank will likely be cheaper but check the numbers carefully. Car loan from dealer is likely to be a flat rate, rather than APR.

serenade2015

Thanks for the replies

had a look at drivethedeal, orangewheels, but as there are new cars - how can I use this for bargaining, I am looking for a used car?

secondly if I do finance through bank loan, do I have any bargaining power with the car dealer? and how can I get discount without letting on I don't want their finance?


Thanks

Herzlos

You can always take out their finance and then pay it off a couple of days later. Might get you a better deal than paying cash.