Buying New Car, Finace vs Outright

fred990

cranford wrote: »

I used carwow recently to buy a new car. carwow should give you the dealers best price and in my case it showed both cash and finance deals. I tried 3 different makes of car and cash was cheaper.

Same route for me having read about it here (thanks to whoever that was :beer:). All of the manufacturers I went to said certain cars sold themselves and were never going to be discounted let alone for a cash sale. Some weeks/months later they started springing up with HUGE amounts lopped off!
Obviously depends if you could wait but I bet some early adopters rightly felt pretty peeved? Some here talk of going in 'to wreck the place' if it happened to them......:rotfl:

motorguy

fred990 wrote: »

Same route for me having read about it here (thanks to whoever that was :beer:). All of the manufacturers I went to said certain cars sold themselves and were never going to be discounted let alone for a cash sale. Some weeks/months later they started springing up with HUGE amounts lopped off!
Obviously depends if you could wait but I bet some early adopters rightly felt pretty peeved? Some here talk of going in 'to wreck the place' if it happened to them......:rotfl:

Yes Alfa have been doing that for decades (as far back as the 156 and then the 159) - no, no we don't have to discount our product to sell it, closely followed a few months later by "oh !!!!, we need to practically give these things away to sell any".

Sadly some people fell for it and got burned, so theres some badly needed Alfa customers who wont be buying another car.

Then of course theres the likes of you, who thinks you've got a bargain because some dealer decided to blow out a car they couldn't get rid of, only for you to find out come resale time why people avoid Alfas like the plague.

For someone who considers themselves so careful with money I'm stunned you've bought one. You could have flushed £20,000 down the toilet and still have been better off, compared to the depreciation you're facing over the next two years. And it's not like they will stop dropping then...

Oh well, a fool and their money.....

ezhiks

Thank you for all the replies, good information here.


I've got a Honda Accord (56 plate), and although its still never given any problems its time to replace.


I've shortlisted a couple of cars, Honda CRV and Mazda6, but would have to test drive to decide on engine type etc. Ideally a Japanese make for reliability.



Having received a large inheritance I'm going to spend some of it me and for the first time think about a new car, but I love a deal so want to spend wisely.


Ideally looking to spend about £25k but will go to £30k if its the car I'll keep for another ten plus years, by which time unless it autonomous I probably won't be driving any more.


So far I've gathered that the brokers who offer PCP deals can't end the finance early without paying all finance fees?


The way then to most likely get a good discount is to use the main dealer, get the best price on finance and then pay off immediately.

motorguy

ezhiks wrote: »

Thank you for all the replies, good information here.


I've got a Honda Accord (56 plate), and although its still never given any problems its time to replace.


I've shortlisted a couple of cars, Honda CRV and Mazda6, but would have to test drive to decide on engine type etc. Ideally a Japanese make for reliability.



Having received a large inheritance I'm going to spend some of it me and for the first time think about a new car, but I love a deal so want to spend wisely.


Ideally looking to spend about £25k but will go to £30k if its the car I'll keep for another ten plus years, by which time unless it autonomous I probably won't be driving any more.


So far I've gathered that the brokers who offer PCP deals can't end the finance early without paying all finance fees?


The way then to most likely get a good discount is to use the main dealer, get the best price on finance and then pay off immediately.

If you use a broker, then you can take out the finance and get the advantage of the incentive, then settle the finance a couple of days later. There shouldnt be any fees worth talking about.

Your local dealer may be able to price match the brokers. That has worked for us on several occasions.

peter_the_piper

motorguy wrote: »

As in "if you buy the car with cash, the price is £28,000 however if you buy the car and use a finance package, the price of the car is £29,000"?

Why would they charge you more for the base price of the car if you were buying the car with finance?

Possibly because there are not so many people able to pay cash so its an opportunity to screw extra from the customer.

motorguy

peter_the_piper wrote: »

Possibly because there are not so many people able to pay cash so its an opportunity to screw extra from the customer.

That would be daft as they want people to take on their finance as people would take the cash price and org their own finance, so they would lose out on further commission.

The better price is almost always if you take out the finance to get any financial incentives and then settle it.

As I said, ove just tried it with carwow on a typical car and the base price was always better if you took the finance deal

If people have actual examples that would be great...

DrEskimo

motorguy wrote: »

That would be daft as they want people to take on their finance as people would take the cash price and org their own finance, so they would lose out on further commission.

The better price is almost always if you take out the finance to get any financial incentives and then settle it.

As I said, ove just tried it with carwow on a typical car and the base price was always better if you took the finance deal

If people have actual examples that would be great...

When I was originally going to get a new Renault Zoe the cash price on CarWow was cheaper than the finance price, but only marginally. Think there was about £250 between the two. This was back in November last year. Doubt it's the case today.

But I agree, finance is generally cheaper. Particularly true with used cars when they have big deposit contributions.

DrEskimo

DrEskimo wrote: »

This was back in November last year. Doubt it's the case today.

Nope scrap that....

Got quotes back today and the best offer was cash at 33% discount.
Best one on PCP was 29%.

neilmcl

DrEskimo wrote: »

Nope scrap that....

Got quotes back today and the best offer was cash at 33% discount.
Best one on PCP was 29%.

From the same dealer?

jimbo6977

buy a pre reg, as long as it's a legit one that comes with a v5