Can anyone confirm this re car buying?

Malbur

Hi,saw an article which basically said that paying cash was not best option as they'll offer better discounts when supplying finance. Which sounds true.

It then recommended to sign up for finance, get discounts, and use 14 day legal right to cancel and pay off original loan amount.

Is this true/legally correct? Any clauses I should be avoiding in the finance agreement etc.

Thanks in advance

Woodstok2000

Yes, it cam be worth considering. Be aware that any incentives (like a service plan) linked to the finance would probably be cancelled too if you cancel the finance. To keep those youd need to pay it off after the 14 days, incurring an interest penalty.

Alderbank

We can't see any clauses so can't really advise if you should avoid any.

But is it legally correct to use 14 day legal rights?

Yes

Ergates

Also bear in mind - an interest free finance period may be preferable to paying in cash anyway. Put the cash somewhere it earns interest.

knightstyle

I found the biggest savings were made by selling our old car privately rather than PX when buying a car.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/82184967#Comment_82184967

Obviously depends on the value of the vehicle, £30k cash price is the limit after which you have the lesser S75a up to £60,260. Though if its the manufacturers own finance arm you will be dealing with Mercedes/VW etc no matter if you go after the retailer or the lender.

https://forums.moneysavingexpert.com/discussion/comment/82184854#Comment_82184854

You have two choices, you could cancel in the cooling off period for free, there are stories of people then losing free servicing after doing so, never seen any deduction being unwound though. Alternatively you could early settle the loan instead, for which they can charge 58 days interest as a penalty but then the loans paid off not cancelled and so they are much less likely to have any arguement not to honour all aspects of the deal

Malbur

Thanks so much for the responses.

Must admit to being bought up in a "buy it, run it into the ground" and "cant afford it -dont buy it" house. Normally wouldn't be trading in and getting another, but just got solar and EV point.

Solar highly recommended btw, not seeing the smart meter move is joyous,and yearly savings as percentage of cost around 11% (even before the January rises)

Think the best advice in article was to not mention cash, see what they'll offer as price and go from there.

Agree on savings but we're ISA'd out and the extra 2% on savings etc is just annoying.