Is it cheaper to buy for cash

nublue

Hi all,
I have suddenly found myself a single mum unexpectedly and I trying to navigate the maze of my finances etc.

I need to buy a car. I have some cash I can use, not a lot but enough to get an older car. I have been lucky enough to have had company cars before I met my husband followed by him buying the car.

So I haven't any experience of buying. I have seen a car I quite like at a garage ear me on the auto trader website but the listing seems to be all about the finance. I am wondering if the finance is how they make their money? I suppose what I am trying to ask is: 1. How do I find out whether the car is a good deal? 2. Does paying in cash give me more bargaining power or less? 3. What else should I be looking out for so I don't get ripped off!

Thanks in advance for your help which is gratefully received :-)

BeenThroughItAll

nublue wrote: »

Hi all,
I have suddenly found myself a single mum unexpectedly and I trying to navigate the maze of my finances etc.

I need to buy a car. I have some cash I can use, not a lot but enough to get an older car. I have been lucky enough to have had company cars before I met my husband followed by him buying the car.

So I haven't any experience of buying. I have seen a car I quite like at a garage ear me on the auto trader website but the listing seems to be all about the finance. I am wondering if the finance is how they make their money? I suppose what I am trying to ask is: 1. How do I find out whether the car is a good deal? 2. Does paying in cash give me more bargaining power or less? 3. What else should I be looking out for so I don't get ripped off!

Thanks in advance for your help which is gratefully received :-)

At a dealer, probably not. Handling cash costs them money, finance pays them money.


If you have enough cash, take out the finance to get the best deal, then pay it off as early as you can (make sure you check any early repayment costs with the finance company's paperwork).


Tell us where in the country you are and local people may be able to advise trustworthy dealers.

nublue

Hi I am in Plymouth. I don't want to take out finance as I am probably going to be having to apply to take on the mortgage, which will be quite tight anyway, don't want any reason to upset the applecart :-)

Foxy-Stoat_3

Try buying from a private seller with your cash, it will save you the most money, take someone who knows something about the car you are look at.

macman

'Not a lot but enough'. So, what is your budget? Yes, garages do make most of their money selling finance, but not on a £500 banger.

BeenThroughItAll

macman wrote: »

'Not a lot but enough'. So, what is your budget? Yes, garages do make most of their money selling finance, but not on a £500 banger.

True, but a £500 banger will be scrap from a dealer, so I'm hoping the OP has more than that available.

OP - what is your budget?

colino

Cash makes no difference to a bona fide dealer, it costs money to process. However private sellers and driveway dealers love it, it positively greases the wheels to see a wad of cash in that scenario.
Don't go shopping at a bombsite dealer with a range of sub £1k bangers either. Any honest dealer will know of the likelihood of comebacks/problems and either send them to auction or pass them through the trade.

nublue

HI all thanks so muchf or all your advice - I have found a suitable car which I am really happy with... Thanks for taking the time to respond to me... :-)

Iceweasel

nublue wrote: »

Hi I am in Plymouth. I don't want to take out finance as I am probably going to be having to apply to take on the mortgage, which will be quite tight anyway, don't want any reason to upset the applecart :-)

I don't want to use finance for my next car any more than nublue does, but it seems the system is geared towards getting a better deal if finance is arranged.

I intend getting the best deal I can negotiate which I'm pretty sure will be for a lesser figure than a straight purchase.

The the plan is to pay it off early - very early - in the cooling off period in fact.

I have yet to confirm that this is truly possible, and I can really benefit from it.

Sounds a bit like cheating though.

Could/should the OP do that?

BeenThroughItAll

Iceweasel wrote: »

I don't want to use finance for my next car any more than nublue does, but it seems the system is geared towards getting a better deal if finance is arranged.

I intend getting the best deal I can negotiate which I'm pretty sure will be for a lesser figure than a straight purchase.

The the plan is to pay it off early - very early - in the cooling off period in fact.

I have yet to confirm that this is truly possible, and I can really benefit from it.

Sounds a bit like cheating though.

Could/should the OP do that?

It is completely possible. One of my colleagues had has 118i written off in June, and after I recommended it, he saved £2K on a replacement 3 Series touring by getting BMW finance which he paid off a week later at a total cost of ~£250 in fees and interest, leaving him £1750 out of the (IMHO somewhat over-generous) insurance settlement.