Taking Finance to get a better deal and then paying off?

smitht2 · Nov 1st, 2018, 20:35

Hi,

Off to see 2 used v90's tomorrow. I'm not part-ex'ing, and can purchase with cash. But I assume dealers are incentivised to sell a Finance deal, and I was thinking of seeing if I can get a better price from taking an HP Finance deal, but then paying off the finance deal almost immediately, and being better off overall as a result. I mention HP, as my "googling" suggests this is a deal that can be paid up early, vs PCP that might need 50% of payments made?

Am I in la la land, or has anyone else done this?

Thanks, Toby.

Ukwide · Nov 1st, 2018, 20:52

Quote:

Originally Posted by smitht2

Hi,

Off to see 2 used v90's tomorrow. I'm not part-ex'ing, and can purchase with cash. But I assume dealers are incentivised to sell a Finance deal, and I was thinking of seeing if I can get a better price from taking an HP Finance deal, but then paying off the finance deal almost immediately, and being better off overall as a result. I mention HP, as my "googling" suggests this is a deal that can be paid up early, vs PCP that might need 50% of payments made?

Am I in la la land, or has anyone else done this?

Thanks, Toby.

Toby,

I think you’ll find most HP deals have early repayment penalty clauses, to offset the loss of interest to the HP company.

If you’ve got the cash and no part-Ex you can haggle and bargain just as hard they want your cash and no misused metal sat on their forecourt

Gary
Salisbury

smitht2 · Nov 1st, 2018, 20:54

Thanks Gary. That’s what I assumed too, but 2 people at work said they did this...but neither was with a Volvo deal.

Ukwide · Nov 1st, 2018, 20:59

Quote:

Originally Posted by smitht2

Thanks Gary. That’s what I assumed too, but 2 people at work said they did this...but neither was with a Volvo deal.

I’ve known a few people who have been stung with early payment clauses, it actually worked out cheaper to pay the loan over the stated period.

I’ve bought all my cars since 1996 using cash and the minute you show you can have the cash in their account within seconds, they’ve bent over backwards to sell me the car I want at a price I’ve been happy with and a lot less than the sticker price...

smitht2 · Nov 1st, 2018, 21:06

Ok again, thanks. Obviously every car/deal is different, but in your experience, what sort of % have you managed to get off ticket price? I always think I’m a pretty crap negotiator and feel I’ve left money on the table... ☹️

simonjedrake · Nov 1st, 2018, 21:20

Quote:

Originally Posted by smitht2

Ok again, thanks. Obviously every car/deal is different, but in your experience, what sort of % have you managed to get off ticket price? I always think I’m a pretty crap negotiator and feel I’ve left money on the table... ☹️

Try Drive The Dealto get a guideline.

smitht2 · Nov 1st, 2018, 21:30

Isn’t drive the deal for new cars? I’m buying used, so was a gamers question re negotiating off sticker price.

AliMurray · Nov 1st, 2018, 21:37

I bought my 67 plate V60 last month and they weren't keen on cash. They tried everything to get me on a PCP or HP deal by chucking on various 'options' such as the paying protection etc etc but running the numbers as I intend to run the car for 5ish years (bought 11 months 20k miles) the numbers came out cheaper everytime buying it cash even with their options 'thrown in'.
In the end I got an alright deal, partly as I walked away when I wasn't getting what I wanted. I could maybe have some better but I did want that particular car. It looked cracking in a great spec.. They didn't budge on the price of the car but got a fair bit more for my trade in and good pricing on the 'options'.

anotherv60 · Nov 1st, 2018, 22:19

Check the terms and conditions of the finance deal - usually they are required to give you 14 days to change your mind, however you pay the finance company, not the dealer. I know someone who bought a used VW golf - they couldn't get anything off the vehicle, but if they took the dealer finance, they received a £1000 deposit contribution and then 2 free services. Immediately after signing up they said they wanted to pay the balance in full. Dealer was a little ****ed but they had to honour the discount as the deposit contribution isn't part of the finance and is deducted from the invoice.

MaDProFF · Nov 1st, 2018, 22:25

Only Time I ever purchase on a loan is if it is 0% other wise I think you end up paying more if a loan is taken out.

Nov 1st, 2018, 20:35	#1
smitht2 New Member Last Online: Jun 19th, 2023 23:19 Join Date: Oct 2018 Location: Barnsley	Taking Finance to get a better deal and then paying off? Hi, Off to see 2 used v90's tomorrow. I'm not part-ex'ing, and can purchase with cash. But I assume dealers are incentivised to sell a Finance deal, and I was thinking of seeing if I can get a better price from taking an HP Finance deal, but then paying off the finance deal almost immediately, and being better off overall as a result. I mention HP, as my "googling" suggests this is a deal that can be paid up early, vs PCP that might need 50% of payments made? Am I in la la land, or has anyone else done this? Thanks, Toby.

Nov 1st, 2018, 21:37	#8
AliMurray New Member Last Online: Jul 25th, 2023 22:04 Join Date: Sep 2018 Location: Horsham, England	I bought my 67 plate V60 last month and they weren't keen on cash. They tried everything to get me on a PCP or HP deal by chucking on various 'options' such as the paying protection etc etc but running the numbers as I intend to run the car for 5ish years (bought 11 months 20k miles) the numbers came out cheaper everytime buying it cash even with their options 'thrown in'. In the end I got an alright deal, partly as I walked away when I wasn't getting what I wanted. I could maybe have some better but I did want that particular car. It looked cracking in a great spec.. They didn't budge on the price of the car but got a fair bit more for my trade in and good pricing on the 'options'. __________________ Volvo V60 D4 R Design Volvo XC40 B4 Inscription Pro Ford Kuga 1.5 Ecoboom liability

Nov 1st, 2018, 22:19	#9
anotherv60 Master Member Last Online: Feb 28th, 2024 19:49 Join Date: Sep 2016 Location: Derbyshire	Check the terms and conditions of the finance deal - usually they are required to give you 14 days to change your mind, however you pay the finance company, not the dealer. I know someone who bought a used VW golf - they couldn't get anything off the vehicle, but if they took the dealer finance, they received a £1000 deposit contribution and then 2 free services. Immediately after signing up they said they wanted to pay the balance in full. Dealer was a little ****ed but they had to honour the discount as the deposit contribution isn't part of the finance and is deducted from the invoice. __________________ MY20 XC40 T4 R-Design, Xenium, Intellisafe Pro, Winter, Tow bar, Thunder Grey Previous: MY18 V90, MY15 V60

Nov 1st, 2018, 20:54	#3
smitht2 New Member Last Online: Jun 19th, 2023 23:19 Join Date: Oct 2018 Location: Barnsley	Thanks Gary. That’s what I assumed too, but 2 people at work said they did this...but neither was with a Volvo deal.

Nov 1st, 2018, 21:06	#5
smitht2 New Member Last Online: Jun 19th, 2023 23:19 Join Date: Oct 2018 Location: Barnsley	Ok again, thanks. Obviously every car/deal is different, but in your experience, what sort of % have you managed to get off ticket price? I always think I’m a pretty crap negotiator and feel I’ve left money on the table... ☹️

Nov 1st, 2018, 21:30	#7
smitht2 New Member Last Online: Jun 19th, 2023 23:19 Join Date: Oct 2018 Location: Barnsley	Isn’t drive the deal for new cars? I’m buying used, so was a gamers question re negotiating off sticker price.

Nov 1st, 2018, 22:25	#10
MaDProFF Master Member Last Online: Dec 10th, 2019 17:40 Join Date: May 2018 Location: London	Only Time I ever purchase on a loan is if it is 0% other wise I think you end up paying more if a loan is taken out.

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