Finance or Outright payment?

jimjames

Mildly_Miffed said:

The one time that financing might make more sense is if you're absolutely certain that you won't keep the car beyond the end of the finance period - 

The other time that financing makes more sense is if you get incentives for taking it out even if it is cancelled in the 14 days. I got 2 years warranty and 2 years servicing on a second hand car from a main dealer for taking PCP.

Frozen_up_north

The end of the month can be a good time to buy cars, dealerships often need a few extra new car sales to keep their franchise. I got £4K knocked off the windscreen price of a £32K new car at the end of Nov 2024, plus some extras. And that was without taking finance or haggling.
As others have mentioned, it’s down to basic arithmetic as to the best choice of financing.

MEM62

unfocus said:

My partner has thrown a spanner in the works by sending a message saying his colleagues are urging us to not pay upfront 'because of the lack of strength as a consumer' and go for PCP or HP instead. 

There really are some people in life that you should not listen to.  Colleagues, the guy down the pub and the mate who is constantly broke offering financial advice are just three of them.    

MyRealNameToo

Frozen_up_north said:

The end of the month can be a good time to buy cars, dealerships often need a few extra new car sales to keep their franchise. I got £4K knocked off the windscreen price of a £32K new car at the end of Nov 2024, plus some extras. And that was without taking finance or haggling.
As others have mentioned, it’s down to basic arithmetic as to the best choice of financing.

End of the month thats also the end of a quarter can be even better but in reality both can go either way... if they are under performing or very near a commission tier they may be more generous to improve their stats but at the same time if they have made their quota and already maxed out the commission they may be less generous. 

I had a very odd situation where I got a good deal from a dealership, signed the paperwork and everything on the Friday then on the Monday got a call saying they'd done their sums again and actually the purchase would push them into a heir tier of commissions for the quarter and so they wanted to knock some more off the price "to guarantee" that no one else would undercut them and cost them the sale. 

Mildly_Miffed

jimjames said:

Mildly_Miffed said:

The one time that financing might make more sense is if you're absolutely certain that you won't keep the car beyond the end of the finance period - 

The other time that financing makes more sense is if you get incentives for taking it out even if it is cancelled in the 14 days. I got 2 years warranty and 2 years servicing on a second hand car from a main dealer for taking PCP.

Yes, taking finance out and then promptly cancelling it by paying cash can be a way of getting freebies - but I'd call that "paying cash"...

B'sides, on a second-hand ex-hire-car from somebody like Shark...

MyRealNameToo

Mildly_Miffed said:

jimjames said:

Mildly_Miffed said:

The one time that financing might make more sense is if you're absolutely certain that you won't keep the car beyond the end of the finance period - 

The other time that financing makes more sense is if you get incentives for taking it out even if it is cancelled in the 14 days. I got 2 years warranty and 2 years servicing on a second hand car from a main dealer for taking PCP.

Yes, taking finance out and then promptly cancelling it by paying cash can be a way of getting freebies - but I'd call that "paying cash"...

B'sides, on a second-hand ex-hire-car from somebody like Shark...

You cancel it by telling them you are cancelling it not by paying cash, simply paying cash is early settling it which means you pay more interest but would retain S75 protection

Mildly_Miffed

MyRealNameToo said:

Mildly_Miffed said:

jimjames said:

The other time that financing makes more sense is if you get incentives for taking it out even if it is cancelled in the 14 days. I got 2 years warranty and 2 years servicing on a second hand car from a main dealer for taking PCP.

Yes, taking finance out and then promptly cancelling it by paying cash can be a way of getting freebies - but I'd call that "paying cash"...

You cancel it by telling them you are cancelling it not by paying cash, simply paying cash is early settling it which means you pay more interest but would retain S75 protection

You still need to pay for that car...

Bigwheels1111

There are a few brokers around where you may get a brand new car for the same price as second hand.
Can you say the exact make, model, colour, add ons that you want.

Its not that you will use the broker, you will use their quote the beat the dealer with.
Is this the car ?.

£18,750 brand new. Basic colour ie white, pay extra for colour you may want.

https://www.autotrader.co.uk/car-details/202508015046537?sort=price-asc&searchId=16490317-555d-4137-9ce3-79496ad0291e&aggregatedTrim=esprit+Alpine&make=Renault&model=Clio&page=1&postcode=S402qq&year-from=new&advertising-location=at_cars&fromsra=&backLinkQueryParams=aggregatedTrim%3Desprit%2520Alpine%26channel%3Dcars%26make%3DRenault%26model%3DClio%26postcode%3DS402qq%26sort%3Dprice-asc%26year-from%3Dnew%26flrfc%3D1&calc-deposit=1875&calc-term=48&calc-mileage=10000

https://www.autotrader.co.uk/car-details/202407041421997?sort=price-asc&searchId=16490317-555d-4137-9ce3-79496ad0291e&aggregatedTrim=esprit+Alpine&make=Renault&model=Clio&page=1&postcode=S402qq&year-from=new&advertising-location=at_cars&fromsra=&backLinkQueryParams=aggregatedTrim%3Desprit%2520Alpine%26channel%3Dcars%26make%3DRenault%26model%3DClio%26postcode%3DS402qq%26sort%3Dprice-asc%26year-from%3Dnew%26flrfc%3D1&calc-deposit=1875&calc-term=48&calc-mileage=10000

Goudy

Bigwheels1111 said:

There are a few brokers around where you may get a brand new car for the same price as second hand.
Can you say the exact make, model, colour, add ons that you want.

Its not that you will use the broker, you will use their quote the beat the dealer with.
Is this the car ?.

£18,750 brand new. Basic colour ie white, pay extra for colour you may want.

https://www.autotrader.co.uk/car-details/202508015046537?sort=price-asc&searchId=16490317-555d-4137-9ce3-79496ad0291e&aggregatedTrim=esprit+Alpine&make=Renault&model=Clio&page=1&postcode=S402qq&year-from=new&advertising-location=at_cars&fromsra=&backLinkQueryParams=aggregatedTrim%3Desprit%2520Alpine%26channel%3Dcars%26make%3DRenault%26model%3DClio%26postcode%3DS402qq%26sort%3Dprice-asc%26year-from%3Dnew%26flrfc%3D1&calc-deposit=1875&calc-term=48&calc-mileage=10000

https://www.autotrader.co.uk/car-details/202407041421997?sort=price-asc&searchId=16490317-555d-4137-9ce3-79496ad0291e&aggregatedTrim=esprit+Alpine&make=Renault&model=Clio&page=1&postcode=S402qq&year-from=new&advertising-location=at_cars&fromsra=&backLinkQueryParams=aggregatedTrim%3Desprit%2520Alpine%26channel%3Dcars%26make%3DRenault%26model%3DClio%26postcode%3DS402qq%26sort%3Dprice-asc%26year-from%3Dnew%26flrfc%3D1&calc-deposit=1875&calc-term=48&calc-mileage=10000

They are actually pretty good prices.
I have a 2020 Clio RS Line and have been monitoring prices of a replacement these last few weeks.

The NHS discount scheme I usually use is quoting around £20k for the same spec/model.

Renault have launched a new Clio, but they haven't committed to RHD versions yet due to the zero emission mandate.
Renault Clio full hybrid E-Tech : citadine hybride 5 places

I guess Renault UK they've stocked up on the current model and are now keen on shifting them.

paul_c123

born_again said:

Take the finance, pay it off within 14 days.

This is often quoted as a strategy, but its only worth doing if there is a (typically manufacturer-offered) finance deal with good incentives - and its often a 0% deal so no interest to pay. As illustrated above, you'll be paying 2 months interest so it makes it not worth doing without the incentives.