Best way to pay for a car

soolin

I need to replace my car which has suffered a major issue and is probably not economical to repair. Went to a main dealer to look at cars and rather like the Juke. We haven't changed our cars now for some time and have never bought 2nd hand before.

Salesman was as expected helpful and we looked at 3-4 year old cars as well as a couple pre reg and he asked how would would be paying. We had intended to pay 'cash' but salesman said the deals on a pre reg might be better if we considered some sort of finance, and we could discuss this when we'd made up our mind - we will probably be going back next week for a longer test drive ,apparently my OH being 71 means they need to 'arrange' a test drive so only I have driven it so far.

We've really only ever had company cars or paid cash for ones we've bought ourselves - so is there a reason why we were told that finance might get us a better deal- and if so what should I be looking for?

El_Torro

If you go with a finance deal arranged by the car dealer then they will get some commission, which is why they can then give you a better offer by passing some of that commission on to you. Of course you need to weigh this up against the amount of interest you will be paying during the life of the loan.

If you go with a finance deal that the car dealer doesn't get involved in I don't see why they would care if it's cash up front or finance.

daveyjp

Please look at reviews of the Juke before making a decision, especially if it is an automatic CVT gearbox. They have poor reliability.

Also never discuss how you are going to pay for a vehicle until you know the bottom line best price. Any incentives for finance are then taken, if it reduces that figure.

If you are inexperienced in the negotiaitng finance at a car dealer please take someone with you. A salesman does this all the time, they will have your pockets emptied before you realise what is happening.

GavCB

you'll probably have more rights to return the vehicle, if faulty, if you use dealer finance…….

FlorayG

Many years ago I remember a friend of mine buying a brand new Range Rover. He haggled the price down and down on finance, agreed a final price...then wrote a cheque for the amount.

If you've got the money in the bank you hold all the bargaining power

Woodstok2000

Of course you need to weigh this up against the amount of interest you will be paying during the life of the loan.

Just to clarify here that the life of the loan is not necessarily the same as the full duration of the loan, it's only up to the point you pay it off. We got an excellent finance deal on a previous car, and then paid the finance off by around month 3 when we had all our own money together. Saved us a fortune on the car, and we only incurred a couple of months interest including the early termination cost.

soolin

https://forums.moneysavingexpert.com/discussion/comment/82131076#Comment_82131076

A useful thought, thank you .

born_again

Just ask them for both cash & finance deal figures.

Surprised when changing mine last month, that it was exactly the same.

soolin

https://forums.moneysavingexpert.com/discussion/comment/82131060#Comment_82131060

We’ve bought dozens of cars, mostly brand new and have had some very good deals by holding our nerve. The only time we got absolutely nothing was our local Citroen dealer, refused to budge off list price by even £1. We knew exactly what we wanted , had test driven it, chosen colour and spec and salesman was dismissive to point of rudeness- so we went to the next nearest Citroen dealer , told them exactly what we wanted they sourced it for us and gave us a discount . About 3 weeks later original garage phoned us to say they had exactly what we wanted in stock and if we bought within the next few days they would add free car mats and consider a £250 discount , which was still more than we’d already paid from dealer 2.

dnpark38

My dealer of present car when buying it he quoted me financed price followed by cash price, I told him I would be paying cash.

Each time I asked price of a variant or extra he gave finance and then cash.

I reminded him I was a cash buyer if he continued to give me finance prices I would walk away.

forgotmyname

Check some of the reliability charts, the Juke is not that reliable.

Suzuki and Honda do similar sized models that are far more reliable. Have a look at the S-Cross for instance.
Depending on the age you maybe looking at the 1.6 petrol which is as reliable as things get, chain driven very
understressed engine that goes on and on with just regular oil changes.