Buying new - anything I'm missing?

robatwork

Hi all,
Considering buying new (Audi A5), and I have a p/x worth about 12k. I have the following ideas in mind:

Taking PCP finance to secure a discount, and cancelling the day after collection
Using Carwow and getting the lowest price to haggle with local dealer
Calling some remote dealers for best price and just sell p/x car myself
Use Drive the deal

Any other tips to ensure I get the lowest price? And are drive the deal still reliable?

thanks

Brie

Other than suggesting you look at a used car (test drive vehicle via a dealership??) I'd just suggest you look at the finance deals and see what the charge is for cancelling early. 

I discussed this once in a dealership and the chap was being so slippery he didn't actually give me any actual figures - which I said to him in the end was part of the reason I wasn't signing up (& so he missed his percentage) because he wasn't being truthful about the information provided.  He kept being patronising and saying things like APR didn't apply, all I had to worry (my pretty little head) about was making the payments each month for however long the loan was for.  He denied that it was a loan that it was "just a way to get the car you want!!!"   Complete prat....

robatwork

Brie said:

Other than suggesting you look at a used car (test drive vehicle via a dealership??) I'd just suggest you look at the finance deals and see what the charge is for cancelling early. 

I discussed this once in a dealership and the chap was being so slippery he didn't actually give me any actual figures - which I said to him in the end was part of the reason I wasn't signing up (& so he missed his percentage) because he wasn't being truthful about the information provided.  He kept being patronising and saying things like APR didn't apply, all I had to worry (my pretty little head) about was making the payments each month for however long the loan was for.  He denied that it was a loan that it was "just a way to get the car you want!!!"   Complete prat....

Slippery is the word, I already feel a bit grubby.

There's a massive difference between cancelling early - what the finance industry calls "voluntary termination" and withdrawing from the agreement completely in the 14 day cooling-off period. It's all a bit risky as if the 14 days starts when you agree to the Ts&Cs and the car does arrive until 14 days after that...

Just getting some quotes from various brokers shows a big difference in cash and PCP prices, demonstrating where they all make their money. In my mind not far from the PPI 80-90% commissions the insurance companies used to pay out to their "salespeople" in the banks. 

Bigwheels1111

Have you looked at broker prices.

The Corolla I want is best part of 6k cheaper, via a broker.

Not used them yet, but a quote would help lower the price at dealers if you dont want to use the broker.

Here are the ones I have saved.

https://www.broadspeed.com/

https://www.drivethedeal.com/

https://www.carfile.net/

https://www.discounted-new-cars.com/
https://www.autoebid.com/
https://www.cars2buy.co.uk/
https://www.new-car-discount.com/
https://www.nationwide-cars.co.uk/
https://www.360vehicleleasing.co.uk/
https://www.uknewcars.com/

Merlin139

The finance PCP paperwork will give a cost per day for the finance. If you reject the finance in the first 14 days then you pay the per day cost rate X the number of days it takes to settle the finance.

The wife did it on the last car that she purchased.

The money was in a fixed rate ISA and had a week left to run. The small amount she paid for having the finance for 8 days was nothing compared to the loss of 60 days interest. She phoned the finance company to reject the finance and asked the cost of repaying it. Obtained the bank details to repay the amount and then requested the bank to transfer the money. What she did notice was that she was charged from the day she electronically signed the finance, but did not collect the car till 4 days later. Paying it off a further 4 days later.

zagfles

Check the terms of the PCP and any deposit contribution. The one I'm looking at says you have to pay back the deposit contribution if you withdraw during the 14 day cooling off period. But you can "settle" early, which is a different thing, but then you pay 58 days interest from the date you ask for the settlement quote and have to pay it within 28 days.  Still well worth it for the one I'm looking at, a £2500 deposit contribution for around £300 interest

Goudy

zagfles said:

Check the terms of the PCP and any deposit contribution. The one I'm looking at says you have to pay back the deposit contribution if you withdraw during the 14 day cooling off period. But you can "settle" early, which is a different thing, but then you pay 58 days interest from the date you ask for the settlement quote and have to pay it within 28 days.  Still well worth it for the one I'm looking at, a £2500 deposit contribution for around £300 interest

Yes, this.

Some finance companies have become wise to customers withdrawing from the PCP finance agreement yet still expecting the PCP deposit contribution.

But if you let the finance go ahead then settle, the finance company cannot charge you more that 58 days interest on a larger loan like this. (it's less days interest for smaller loans).

You can of course settle finance any time you like but if settle it within the first month you will effectively only pay two months interest and still keep the deposit contribution, which is almost always far greater than the 58 days interest.

Being in a position to do this lets you seek out the best deals in terms of contribution without really sweating on the finance rate, length of contract and mileage allowance too much.

You're only really going to pay around two months interest anyway when you settle and you're obviously keeping the car so there are a few things you can do you help with that 58 days interest payment.

Sign up to a contract that borrows less for a short period.

If you can max your deposit and select an ultra low mileage contract over a shorter term.
This means the amount initially financed is smaller and over a shorter term which means less interest, that cuts the 58 days payable to a lot less than a longer term contract with more miles (as the car would normally be worth less at the end of the contract so you would normally borrow more with more interest which hikes up the 58 days).

marlot

zagfles said:

Check the terms of the PCP and any deposit contribution. The one I'm looking at says you have to pay back the deposit contribution if you withdraw during the 14 day cooling off period. But you can "settle" early, which is a different thing, but then you pay 58 days interest from the date you ask for the settlement quote and have to pay it within 28 days.  Still well worth it for the one I'm looking at, a £2500 deposit contribution for around £300 interest

Which manufacturer is that with?

zagfles

marlot said:

zagfles said:

Check the terms of the PCP and any deposit contribution. The one I'm looking at says you have to pay back the deposit contribution if you withdraw during the 14 day cooling off period. But you can "settle" early, which is a different thing, but then you pay 58 days interest from the date you ask for the settlement quote and have to pay it within 28 days.  Still well worth it for the one I'm looking at, a £2500 deposit contribution for around £300 interest

Which manufacturer is that with?

Toyota ....