0% PCP

Felix

Felix

Felix

Soldato
Joined
25 Jan 2003
Posts
2,701
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!
 
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
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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.
 
The offers normally seem to come in within 4-24 hours from my experience.
Drivethedeal should get you a better price, but its slightly more risky in that you pay before you get the deal offered.

I think when there is money being made on the PCP there is sometimes more to be had, but just as frequently it makes no diff, at least on my experience 18 months or so ago. (I bought via Carwow)
Normally the only difference is the manu contribution on PCP if there is one.
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
 
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
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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.
 
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.
 
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.
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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?
 
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!
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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 said:
Exactly! I'm after a discount off list price plus tow hitch, boot liner, couple of free services, roof rails for bikes. Too greedy?
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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.
 
Sticking spending on 0% loans and funnelling the money into savings until the end of the 0% term is called stoozing and is perfectly sensible *if* you're able to keep on top of it/plan to pay off in full just before the 0% ends/don't let yourself overspend.

The only other consideration I'd have is that often dealers will give you a deposit contribution of a thousand or so if you take out finance with them, so doing that and then settling the remaining balance a week later could save you more money in the long run depending on interest/amount of savings!

As said though, get some carwow quotes however you finance it. My last car purchase I got 3k off a 16k car because I walked in and said "match this and I'll buy". Was going to buy three services with them anyway, so moved on to "throw in a tank of petrol and these extra goodies and I'll sign up for that too".

Just do your research and have a price you're aiming for when you walk in - they'll try and take you for a ride if not! :).
 
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?
 
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?
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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.
 
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