Bought a 2nd Hand car (Skoda Octavia, from dealership) last year in May, was around 15K.
Cash buyer as well, but got offered a finance deal:
- Paid 5K (thereabouts) in cash
- 10K interest-free(!) credit (from Volkswagen finance) over 2 years
The credit is one of those where the car is only is yours once it is fully paid at the end of the 2 years, but your can pay off early without any drawbacks.
Didn't really want to have a credit for the car (I hate regular monthly outgoings) but zero% is hard to beat.
Reg. your neighbours: many friends and acquaintances use some PCP deal, hence you see many new cars. There's a few discussions on aam on the pros/cons of it thought.
I buy with cash, but I never tell salesperson that. It's none of their business whether you've cash lying around, or took a loan from credit union. It's in their interest, generally, to upsell.From the 2 dealerships I have been in they were both very surprised that I was a cash buyer and wondering why I wasn't getting a new car on some sort of finance deal.
Many people are opting for PCPs at various low rates of interest or car manufacturer finance. I have two friends in particular, one avails of PCP and just rolls over the finance every three years. The other is considering 0% finance with Opel. I will pay cash to change as the cash is earning nothing in the bank or CU and I am fortunate to have it.
See key post at the top of this forum. https://www.askaboutmoney.com/threa...finance-a-new-car-pcp-hp-or-term-loan.202240/
I buy with cash, but I never tell salesperson that. It's none of their business whether you've cash lying around, or took a loan from credit union. It's in their interest, generally, to upsell.
I used to work in car finance, and there is no such thing as interest free credit.
It's these 2 mainly.Is it availability of finance?
Keeping up with the Jones's?
I used to work in car finance, and there is no such thing as interest free credit.
What is the driving force behind choosing a new car when the rate of depreciation is so high in the first year
Except you could probably buy the 10k car for 9.5k if you have your own finance.That is pretty much interest free credit for met.
I suppose what I am looking to tap into is why people are now inclined to buy a new car v a second hand one.
Is it availability of finance?
Keeping up with the Jones's?
Positive economic outlooks in the papers?
Higher disposable income?
A combination of the above?
What is the driving force behind choosing a new car when the rate of depreciation is so high in the first year
To be honest i've been down that road and believe it or not the cash made absolutely no difference in my case. By the way the car was new and I had a trade in. Never let the salesman know if I was going with cash or not, got his absolute bottom line and had been in a few other dealerships as well so knew what would be good or bad. Told me what the 0% finance would work out at when I asked him, then asked what it was for cash and as I said, it made no difference at all. Spoke with quite a few others about this type of buying from car dealers and very much the same from everyone I talked to. You'll find they won't be chasing you for a deal either. It's take it or leave it as far as I can see nowdays in the motor industry.Except you could probably buy the 10k car for 9.5k if you have your own finance.
To be honest i've been down that road and believe it or not the cash made absolutely no difference in my case. By the way the car was new and I had a trade in. Never let the salesman know if I was going with cash or not, got his absolute bottom line and had been in a few other dealerships as well so knew what would be good or bad. Told me what the 0% finance would work out at when I asked him, then asked what it was for cash and as I said, it made no difference at all. Spoke with quite a few others about this type of buying from car dealers and very much the same from everyone I talked to. You'll find they won't be chasing you for a deal either. It's take it or leave it as far as I can see nowdays in the motor industry.
Yes,I went to 3 different Skoda garages in 2016.I talked cash only at 2,but got no discount on price for cash up front.I went with 0% finance,no issues with it yet,final payment later this year.
someone has to buy a new car, how else will you buy your second hand one?
No. PCP is a form of HP finance, which is not regulated by CBI.Are there set guidelines similar to mortgage lending?
I buy with cash, but I never tell salesperson that. It's none of their business whether you've cash lying around, or took a loan from credit union. It's in their interest, generally, to upsell.
I used to work in car finance, and there is no such thing as interest free credit.
It's these 2 mainly.
When someone is buying a car on finance, they generally don't look at the total price: they look at the monthly payment. Ask your neighbours with the new cars, and I'm sure half them are convinced it was cheaper to buy new than 2nd hand.
What they miss is that they are paying half the cost over 3 years under essentially a rental agreement, rather than buying the 2nd hand car outright over the same period.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?