Is it ever an better idea to buy a car on finance when you have cash?

ChemistDude

Just to throw it in there, why both with finance when you can typically get a personal loan at a much lower APR?

NYGiants

DesiBadBoy wrote: »

Just to throw it in there, why both with finance when you can typically get a personal loan at a much lower APR?

The idea is to purchase the car using the garages own finance company (to gain the extra perks) but pay if off immediately using cash so you don't actually pay any APR.

If you can only pay using finance, then yes a personal loan will normally be more beneficial (provided the lower APR benefit outweighs the garages extra perks).

ChemistDude

NYGiants wrote: »

The idea is to purchase the car using the garages own finance company (to gain the extra perks) but pay if off immediately using cash so you don't actually pay any APR.

If you can only pay using finance, then yes a personal loan will normally be more beneficial (provided the lower APR benefit outweighs the garages extra perks).

That's seems like a good idea in principle. Would just have to bear in mind that some finance agreements charge interest monthly and not daily so you might take a small hit if paying within first month. But as you say as long as perks outweigh....