Buying a car finance or not?

Redmr

I am in the process of buying a used car from a dealership. I intended to pay by part-ex and cash. To get the best deal the dealership have asked me to take out finance instead of paying cash. They stated they would pay the first 3 months payments, then at the beginning of the forth month I should attend their office and pay the finance in full. After doing this I will have completed payment. They informed me that the commission they received from the finance company would assist in obtaining the best possible deal.
As anybody come across this before ?

vlad

Sounds like the dealer is offering you a 3 month interest free loan funded by them.TBH I'd be wary and if you can go down the px/cash route.

forgotmyname

Why dont they just knock less off the price of the car and make just as much money from it without having to mess around with finance?

How much is the car?

bearcat16

forgotmyname wrote: »

Why dont they just knock less off the price of the car and make just as much money from it without having to mess around with finance?

How much is the car?

Because they get a kickback from the finance company, this is the "commission" they're talking about.

The idea of doing this is not at all unusual, as manufacturers will often throw in extras like free servicing and a deposit contribution if you get their finance. The trick is to take the free goodies then pay the finance off after you've made 1 or 2 payments, hopefully with interest free finance (eg from a 0% credit card) or savings.

Don't know why you were told to go to the dealership to settle the finance though, you can do that yourself with a debit card over the phone usually. Perhaps they thought you didn't sound like you weren't too sure what to do so they wanted to help by doing it with you.

Anyway, nothing unusual about this, done it myself a few times.

Redmr

Thanks bearcat16 that is what they explained to me. Good to know others have done this.