Take finance for better deal (on used) ...questions/thought

[jonflat2]

Firstly, apologies if this has been covered elsewhere. A quick search didn't throw-up anything - but I might be being thick.

I'm just in the process of buying a used car via a dealer. Last time I went through this, sellers were more inclined to offer better deals/discounts on the price of a car if I took out finance.

I tend to buy outright, but it got me thinking whether if it's a possible plan to take the finance that they're (hard?) selling and then cancel within the 14 days and/or pay it off early, in order to get a preferential deal on the price of the car.

Tbh I hate paperwork, so I will no doubt just pay outright. But my experiences last time got me thinking whether this is a possible ploy for some people, or if there's good reasons not to.

[blue_haddock]

Yes its definitely do-able so just call up after a few days and pay off the finance with your own cash.

Might cost the first months interest but if they could knock a chunk off for taking finance it could be worthwile.

[ScoobyChris]

Interesting - whenever I’ve bought used cars and asked if they can do me a better price if I take the finance, I’ve always been told that the price is the price irrespective of how I fund it.

New cars on the other hand, they have thrown incentives at me without having to ask

Hopefully you have better luck!

Chris

[TarquinMX5]

Just be aware that some contracts (not all) allow them to (or did) pull back the 'discount', ie dealer contribution, if cancelled within the 14-days.

I've never financed but did look into it (the discount) years ago and came to the view that, with some dealers, you might end up paying a small amount of interest before clearing the balance, which still might be worthwhile. Depends on the amount of 'contribution', although from what I've seen they're nothing like they were before the pandemic.

[dino_jr]

I suggest take finance but give the biggest deposit they'll accept, so the finance is on the smallest amount left.
Suffer 1 months interest on that small amount, then pay it all off.

[jonflat2]

Thanks for the replies.

It’s been a few years since I last bought a car, so maybe this tactic isn’t as useful as was back then.

It will be interesting to see how it pans out. Back then it did feel like the extras (warranties, gap insurance, and finance, were as much a priority as actually selling the car!). It was almost like dealers are credit brokers as much as car dealers.

[Caddyshack]

Just bear in mind that the sales guy may get a clawback of commission, I don’t think I would be comfortable doing that to them unless they were a total bell.

[Fady]

Caddyshack said:

Just bear in mind that the sales guy may get a clawback of commission, I don’t think I would be comfortable doing that to them unless they were a total bell.

Swings and roundabouts for the sales guy. As conscientious as I am, don't think he'd be at the top of my priorities. Have previously got a better deal by doing same on what would otherwise have been a near criminal rate of interest.