retired_abess

Four years. Wash your eyes out young man.

retired_jhr2211

You stated 0% finance for four years which is why I asked as it implied the finance runs for longer.

Why would a finance company offer a 0% deal or a dealer be prepared to negate the finance deal % for a purchase?

retired_abess

I've no idea what you're driving at. I got a 0% rate on the balance of my purchase over 4 years. After 4 years the car is paid for.

retired_jhr2211

And as I stated, simple finance marketing, why would any broker/dealer or finance company offer that as opposed to charging you for the privledge of spreading the payments or demanding it all upfront?

retired_kris10nicole

I've no idea what you're driving at. I got a 0% rate on the balance of my purchase over 4 years. After 4 years the car is paid for. </BLOCKQUOTE>

So what's in it for the finance company?

retired_abess

I don't know. To stimulate the market perhaps? But regardless, that's the deal I got.

retired_kishnata

Definately a personal loan from your bank.

It will also give you more leverage to haggle with the dealership, if you pay cash.

I got my car new with a graduate loan, worked out quite well.

There are two Peugeot dealerships near me so I was playing them off against each other to get the best possible deal.

retired_kris10nicole

I'm no expert myself, but i've heard from more than one person that you actually get more leverage on the price if you use there finance, because that's where a lot of their profit is, rather than in the car itself. So if you pay cash they have much less margin.

retired_abess

I'm no expert myself, but i've heard from more than one person that you actually get more leverage on the price if you use there finance, because that's where a lot of their profit is, rather than in the car itself. So if you pay cash they have much less margin. </BLOCKQUOTE>

Yes, the idea of getting a discount for cash is nonsense. The industry is happy to perpetuate the myth though, as it's often a deal closer.

retired_kishnata

I've always heard the opposite, as they have a hold on you if you are using their finance. As you can't just say I've only got £x amount of money, as they know you want the car and are more likley just to go with whats offered.

With no financial commitments to them, they know you can just walk away. Which I did a few times before finally getting the deal I wanted.