And here's why you shouldn't take dealer finance

[TW]Fox;22706013 said:
How do you get around the fact that most dealers wont let you pay with CC without a large loading and that in order to buy a car AND then balance transfer it to a Barclaycard you'd need massive credit limits on both cards?
Click to expand...

Yes you do need massive limits on the cards but I budget of no more than 5k for any vehicle so not too bad for me, Depends on the company with regards to credit card charges, the last one was part of the deal so no fee for me, just a transfer fee.

Anyways it works for me and I'm happy with that!

There's options everywhere it's just finding one that suits your budget.
 
Last edited:
Well there you go then, of course it works for you if the car is a sub £5k car. Why would you even take finance on a cheaper car anyway :confused:

I got the impression this thread was about cars of such value that finance was the most common way of purchasing. You cant really use credit cards for those.

Depends on the company with regards to credit card charges, the last one was part of the deal so no fee for me
Click to expand...

Well no, fact is they will have to pay a percentage fee to the card company to process your transaction. They can 'waive the fee' for you, but in reality its just margin in the deal they've used to cover it, ie if you paid with a debit card you'd have been able to haggle the price down to reflect the car its several percent cheaper for him to process.
 
The two year service plan is also not a good deal as most cars will be on long life servicing needing only one service in the two years. Even if you have to pay for two services you can get them for around £150 from a VW dealer or under £100 if you provide your own oil.
 
MofoKilla said:
what you doing with your proper car ? selling it ?
Click to expand...

I'm keeping the weekend Corrado but selling the family Golf mk4 4Motion. It really has been a superb car for the last 8.5 years but it's time for something newer. It's a convenient time to change cars due to some work needed on the 4mo and I've found a mk6 GTI at what appears to be a very good deal and seemingly below average price for similar cars. For a VAG dealer car it's not much more than private sale price so too good to dismiss (no doubt the price has probably been helped a little with the launch of the mk7 and its slightly higher than average mileage).

Someone will get a fantastic 4mo though. I'm genuinely hesitant to change it and in some ways it's a better car than the one I'm probably buying.
 
Dangerous Dave said:
The two year service plan is also not a good deal as most cars will be on long life servicing needing only one service in the two years. Even if you have to pay for two services you can get them for around £150 from a VW dealer or under £100 if you provide your own oil.
Click to expand...

The £139 service is only a minor service, a major service is £279. Both prices are about the same as everyone else where I live...there is only a tenner or so in it........and you don't get that dealer stamp with the others..or the service quality, free mot, free bulbs/wipers, assurance of genuine parts etc...
 
MeEsH BaKkA said:
Just for those who don't know, dealers get commission on finance and the higher the APR the higher the percentage the dealer gets.

Black horse for example the dealer can actually forfeit any commission or even pay black horse themselves for a lower finance rate. I think I coiled get finance through my dad at 6% Apr at the moment without any subsidy paid and he gets 0 commission for example.
Click to expand...

Sounds about right with the finance company I deal with.

We sell a product at full price @ 0% and we pay the subsidy. 12-22% depending on term.

If the product is reduced already then it becomes 19.5% of which we get the full amount for the product and the extra ontop goes to the finance company.
 
Jonny ///M said:
Sounds about right with the finance company I deal with.

We sell a product at full price @ 0% and we pay the subsidy. 12-22% depending on term.

If the product is reduced already then it becomes 19.5% of which we get the full amount for the product and the extra ontop goes to the finance company.
Click to expand...

That does sound similar to what happened to me. The dealer simply wouldnt go below a price and knew I would be needing finance. So I guess expected to make most of their profit on the loan commission rather than the car itself... Then I rock up with a cheaper bank loan instead :)
 
My dealership finance is something like 0.6% APR... seems pretty reasonable to me. I did do a lot of negotiating on the monthly cost figure though so maybe that's what paid off?
 
panthro said:
Dealer finance is 99% crap on 2nd hand cars. Always best to take a bank loan unless going down the PCP route.
Click to expand...

Pretty much this. At least when your a new customer the manufacturer will contribute to achieve lower APR, lower monthly costs etc but when your doing it on a 2nd hand car on a forecourt, its all down to the dealership and we all know how much they love their commission! :rolleyes:
 
You must log in or register to reply here.
Back
Top Bottom