0% PCP

Felix · 11 Mar 2019 at 11:17

I am after a brand new car and have the cash to buy it outright. I usually buy 2nd hand, either an ex-demo or 1 year old car and then keep it for at least 6 or so years, sometime even longer.

The car I am after has only just been released and therefore there are no second hand ones available and it will be several months until the demos are ex demos perhaps even a year.

Now said new car currently has 0% finance available and while I have always paid for cars outright, what got me thinking was why drop all the cash on the car when I can keep it in the bank (earning 1.5% interest) and then take out the 0% deal with minimal deposit, pay my monthly amount and then pay off the car in full after the contract ends. I also reckon (and using car wow as a guide) get a apx 5% off the brand new car and a few extras.

Am I missing something here, what's not to like about 0% finance in this instance? Yes there will be depreciation, but I am hoping that the negotiation and interest earnt on the cash in the bank will slightly offset this!

Felix · 11 Mar 2019 at 12:06

Mercenary Keyboard Warrior said:
Have you checked carwow and drive the deal in regards discount

PCP is becoming the norm for a lot of people now so often good deals about

Only thing I have done on carwow is build a car and wait for offers, the selector for PCP or cash makes no difference.

Unfortunately there is no dealer or manufacturer contributions with the PCP but I get the impression that bigger discounts off the list price by haggling could be had by going down the PCP route.

Felix · 11 Mar 2019 at 12:26

Mercenary Keyboard Warrior said:
I actually used a carwow price from another dealer to haggle my local one down a little more. I told them it was worth my while driving an hour each way for £300, so they needed to get a little closer, they split the difference which was good enough for me

This is my plan. There's at least 7 official dealers within 40 miles of me so hoping 1 of them will get close or better the carwow ones and then blag a few extras.

Felix · 11 Mar 2019 at 12:28

andicole0 said:
Just remember you don't get something for nothing. 0% will mean the 'profit/interest' has already been built into the price. However if you see a vehicle as an acceptable expense then a monthly payment can be a good thing. Check who owns the vehicle during the deal just so you know.
Andi.

No but at the same time, this is a new model so they might be wanting to boost sales.

Surely the owner would be the finance co?

Felix · 11 Mar 2019 at 13:57

WoodyUK said:
Dealers get a kickback from PCP so there's *always* something they can do for you versus a full cash outright price, if not, find another dealer!

Exactly! I'm after a discount off list price plus tow hitch, boot liner, couple of free services, roof rails for bikes. Too greedy?

Felix · 11 Mar 2019 at 14:09

TheOracle said:
Not at all if you're starting at list. To be honest, even with something like a carwow discount you'd want to be pushing for that. Depends on the make/model.

This is on top of the carwow offers to sweeten the deal!

Felix · 12 Mar 2019 at 14:00

Psycho Sonny said:
how would you go about buying an ex-demo anyway? would you normally just keep checking their website daily? or ask them to call you once it's up for sale?

like how do you know one is available? also won't a demo car have been thrashed like a rental?

The dealerships I have been to accompany you on the test drive so the chances of it being thrashed is low. Also some of the ex-demos are manager cars that they use for 6 months and then sell on, what's more the managers usually get a top spec with extras. I just check the dealer's website till one comes up.