Do you get a better deal on a car if you take out a loan?

bigfreddiel

Will a car dealer give you a better deal on a car bought with finance because they get a kick-back from the finance company?

Pixie5740

Yes, dealerships make more money selling finance than selling cars. There's nothing to stop you taking the finance, getting the discount and paying off the finance after you pick up the keys. Win win :beer:

bigfreddiel

Pixie5740 wrote: »

Yes, dealerships make more money selling finance than selling cars. There's nothing to stop you taking the finance, getting the discount and paying off the finance after you pick up the keys. Win win :beer:

Wouldn't there be a penalty for paying off a loan early? I guess that's a question to ask when setting up the loan.

Cheers fj

jonesMUFCforever

In most cases no; but the detail is in the contract you sign.

bigfreddiel

Any tips on negotiating a good price on a nearly new car? Cheers fj

Pixie5740

Whenever I have negotiated a discount I've done my homework first. I know the cost of the car not only at the dealership but dealerships across Scotland, Northern England and The Midlands. I know how much the equivalent car at other manufactures would cost. Then I use this information to come up with the price I'm willing to pay and that's what I put to the dealership. If you accept £X then you have a deal. Don't let your heart role your head and be prepared to walk away if necessary. Apparently putting your handbag on the desk is a tell that you're about to sign on the dotted line.

bearcat16

Don't be too complimentary about the car, it's better to be nonchalant even if you love it.

Be prepared to walk away if the salesman doesn't play ball.

Rather than ask for a cash discount, in my opinion it is better to ask for something that won't cost them very much, but would be expensive for you, such as free servicing.

Don't be nasty to them, be nice but be cheeky, you don't get if you don't ask.

Don't take anyone's word for anything, if it's not in writing it doesn't exist (eg warranty, free servicing etc)