What's the best way to finance a new car from the dealers

Andybez38

Is it thier finance a loan or other means

AdrianHi

Lombard Direct were /are doing 6.9% APR balanced lease purchase schemes and loans.
The advantage with this vs. dealer finance, is dealer finance is usually front loaded with interest payments, so your are not paying capital off until later in the loan period. This is bad news if you think you might settle the loan early as the settlement figure may be no less than the amount you borrowed in the first place. Get a dealer to tell you in writing this is not the case for their finance if this is a concern to you.
If the car gets written off you will have to settle the finance early which could give you a problem in this scenario. There is GAP insurance which covers any short fall between current value of the car and outstanding loan amount (your car insurance pays out original invoice value inside first 12 months). There is also RTI (return to invoice) insurance which pays back original invoice value of car when it is over 12 months old.
Dealer finance is usually quoted flat rate %, double this figure gives you close to the actual APR for comparison purposes.

Financing a car against you mortgage may be cheaper so long as you are disciplined enough to re-pay the car loan amount over the same period you would have paid off an unsecured loan.

The way I look at financing cars is that there is always a finance charge involved. If you fund the car from your savings the finance charges is lost interest on the money now not earning interest. Any interest free credit you can get out of the dealer is a real bonus.