Car financing

I've leased for the past 12 years but thinking about buying a nearly new car in March when my current lease is over.

Does being a cash buyer offer any decent bargaining power? Are the dealers likely to budge from the asking price for a cash buyer?
 


Copacabana said:
I've leased for the past 12 years but thinking about buying a nearly new car in March when my current lease is over.

Does being a cash buyer offer any decent bargaining power? Are the dealers likely to budge from the asking price for a cash buyer?
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It doesn't seem so, it appears as if they prefer the finance route as they make more, a little independent dealer may be different like
 
Copacabana said:
I've leased for the past 12 years but thinking about buying a nearly new car in March when my current lease is over.

Does being a cash buyer offer any decent bargaining power? Are the dealers likely to budge from the asking price for a cash buyer?
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In short no, we hate cash buyers.

You are more likely to get a better deal going the finance route, then settle off within 14 days using Right Of Withdrawl.
 
Langleyparkmackem said:
In short no, we hate cash buyers.

You are more likely to get a better deal going the finance route, then settle off within 14 days using Right Of Withdrawl.
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So you have a right to pay the full sum within 14 days, is that right? I bet the dealers well pi$$ed off with that if he's given you a good deal:lol:
 
Hmm right of withdrawal sounds interesting

Is there a rule of thumb when bartering? I mean for example should you go in 10% below asking price and chance your hand?
 
Gutmackem said:
So you have a right to pay the full sum within 14 days, is that right? I bet the dealers well pi$$ed off with that if he's given you a good deal:lol:
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Yeah its your legal entitlement. you cancel within 14 days, and then you have 30 days to stump up the cash. You will pay a very nominal day interest charge (usually a couple of quid a day).

When this ruling came in we were scared witless abut it, thinking the world would end but its not the case.

The brand i work for give very high finance deposit contributions on PCP agreements, so if i have a cash customer i tell them to take the PCP, claim the discount and settle the day they collect the car. that way they save 2-3k and it doesn't affect my margain. Both parties win !

Copacabana said:
Hmm right of withdrawal sounds interesting

Is there a rule of thumb when bartering? I mean for example should you go in 10% below asking price and chance your hand?
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Years ago this tactic may work, but now a days there are so many different options out there. If you want something, what do you do, you sit and look on the internet for the cheapest then visit that store. Its no different in the car trade, margins are so tight because we are all fighting against each other for business. To get noticed you have to be the lowest priced.

Pacific said:
aye that's the same way the sales lad sold it to me aswell when i was looking at 3 or 4 year PCP deals

i just get the feeling it's not that simple
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Be careful of falling into this trap. If you VT a car a mark is placed on your credit file which in itself is harmless. However if you do this 2 or 3 times you will have difficulty getting a HP or PCP loan as you are then considered a risk. Had a few customers lately where finance companies would only accept on Personal Loan terms or on a reduced term

Gutmackem said:
So you have a right to pay the full sum within 14 days, is that right? I bet the dealers well pi$$ed off with that if he's given you a good deal:lol:
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Absolutely nothing the dealer can do. NOTHING
 
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Langleyparkmackem said:
Be careful of falling into this trap. If you VT a car a mark is placed on your credit file which in itself is harmless. However if you do this 2 or 3 times you will have difficulty getting a HP or PCP loan as you are then considered a risk. Had a few customers lately where finance companies would only accept on Personal Loan terms or on a reduced term
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the lad told me a mark would be placed on my credit file for 30 days

i'll probably look into it nearer the time but i didn't go with the deal on the back of the termination clause so it's not something i'm that worried about
 
Langleyparkmackem said:
Yeah its your legal entitlement. you cancel within 14 days, and then you have 30 days to stump up the cash. You will pay a very nominal day interest charge (usually a couple of quid a day).

When this ruling came in we were scared witless abut it, thinking the world would end but its not the case.

The brand i work for give very high finance deposit contributions on PCP agreements, so if i have a cash customer i tell them to take the PCP, claim the discount and settle the day they collect the car. that way they save 2-3k and it doesn't affect my margain. Both parties win !



Years ago this tactic may work, but now a days there are so many different options out there. If you want something, what do you do, you sit and look on the internet for the cheapest then visit that store. Its no different in the car trade, margins are so tight because we are all fighting against each other for business. To get noticed you have to be the lowest priced.



Be careful of falling into this trap. If you VT a car a mark is placed on your credit file which in itself is harmless. However if you do this 2 or 3 times you will have difficulty getting a HP or PCP loan as you are then considered a risk. Had a few customers lately where finance companies would only accept on Personal Loan terms or on a reduced term



Absolutely nothing the dealer can do. NOTHING
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https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

Are you sure about this? According to the link above and from a few sites it doesn't leave any mark. It will say financed settled/ended early but no reason for this. The only people who would know is you and the finance company who probably wouldn't give you finance again anyway.

Doesn't make much difference to me mind. Ill be using it regardless as it makes sense this time to do it. Plenty of other companies or finance options to use if needed.

Edit: it says it doesn't affect credit rating. I read it wrong.
 
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safcsafc said:
https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/

Are you sure about this? According to the link above and from a few sites it doesn't leave any mark. It will say financed settled/ended early but no reason for this. The only people who would know is you and the finance company who probably wouldn't give you finance again anyway.

Doesn't make much difference to me mind. Ill be using it regardless as it makes sense this time to do it. Plenty of other companies or finance options to use if needed.

Edit: it says it doesn't affect credit rating. I read it wrong.
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Aye defo leaves a mark and your correct it doesnt "affect" your rating as such.

However, when the finance company are deciding whether or not to lend, if they see a few VT marks they may decide to impose terms or refuse all together.
 
Carwow is worth looking at if you're on about a new new car.

You put in what you want and dealers submit their best price.

Even if you don't use them, it gives you an idea how much to expect off list price. Some brands were next to nowt 5% but others like 15 -20%.

Dealers round here couldn't get close, cheapest happened to be in Middlesbrough so not far to travel for me.
 
burro nunn said:
Carwow is worth looking at if you're on about a new new car.

You put in what you want and dealers submit their best price.

Even if you don't use them, it gives you an idea how much to expect off list price. Some brands were next to nowt 5% but others like 15 -20%.

Dealers round here couldn't get close, cheapest happened to be in Middlesbrough so not far to travel for me.
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Aye it's a good concept, I tried it out of interest & it's spot on if your after something new!
 
Langleyparkmackem said:
Aye defo leaves a mark and your correct it doesnt "affect" your rating as such.

However, when the finance company are deciding whether or not to lend, if they see a few VT marks they may decide to impose terms or refuse all together.
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Cheers. Worth keeping in mind. I plan on doing it with this car then renting for a while after this so hopefully doesn't affect me to much.
 
Gutmackem said:
What's the difference of these in lay mans terms?
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PCH - Personal Contract Hire, you pay rental payments for a set period of time, you’ll never own the vehicle at the end of the agreement, won’t generate any equity and hand the vehicle back when the agreement is finished. Can have repair and maintenance included and will be mileage restricted. Deposit will likely be low e.g. 3 x rental payments up front

PCP - Personal Contract Purchase, deposit required, your monthly payments are then tailored to your needs (to a degree) and you’ll often have a balloon payment at the end. A lot of products now will give you the three options at the end of the agreement, hand the car back and walk away without paying any more payments, put the car as deposit towards another vehicle or pay the final payment and own the vehicle. R&M can be included and it’s your responsibility to decide on your Contract end options. Deposit is likely 20% of the purchase price.
 
Very ve
Gutmackem said:
What's the difference of these in lay mans terms?
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In brief terms,

Personal Contract Hire is a rental agreement over a fixed term. At the end of the agreement you have no option other than to return the vehicle. If you have exceeded the agreed mileage you will have to pay a fee, likewise if there is any damage over and above what is set out in the BVRLA guide. Normally you cannot return the vehicle during the term without paying a sizeable sum.

Personal Contract Purchase, is a .......

What he said, he's cheated and used CUT and PASTE :)
 
Langleyparkmackem said:
Very ve


In brief terms,

Personal Contract Hire is a rental agreement over a fixed term. At the end of the agreement you have no option other than to return the vehicle. If you have exceeded the agreed mileage you will have to pay a fee, likewise if there is any damage over and above what is set out in the BVRLA guide. Normally you cannot return the vehicle during the term without paying a sizeable sum.

Personal Contract Purchase, is a .......

What he said, he's cheated and used CUT and PASTE :)
Click to expand...
No cut and paste here, I work with it every day of the week.
 

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