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Car dealerships / finance / cash is indeed trash
jeffian
Posted: 27 September 2020 18:18:42(UTC)
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I must admit that I haven't changed cars for a while as my mileage has decreased dramatically in the past few years but I used to change them religiously every 3 years (i.e. warranty period) and, having an aversion to finance deals, the following used to work for me. Most of the big brands - Audi, VW, BMW etc - massage their sales figures by "pre-registering" thousands of cars to their dealers which appear as "sold" in the manufacturers stats. Every 6 months, around April and October, any remaining stock HAS to be moved on for the next allocation of new cars. That's when you will see the big promotions but be aware that any unsold after the cut-off date will simply go to auction and be knocked out at the best price they can get. My approach was to look up in the price guides the very best retail price for my old car, look at the worst price for a 6-month old used car, knock off a bit, calculate the difference and then go to the dealer and say "You can have my car plus £X" and then not budge. OK, the initial reaction is always a no - I had a dealer laugh at me - but if you're prepared to walk away, the chances are you'll get a deal. My previous "used" car had 35 miles on the clock when I bought it; the current one had a couple of thousand miles but I got it at a huge markdown (although I note that the paperwork showed the new car bought at full price and the old one sold at a ridiculous price on which I presume they made a 'loss'). It probably only works if you are dealing with the same brand.
2 users thanked jeffian for this post.
Rob B on 27/09/2020(UTC), Himlo on 27/09/2020(UTC)
Tyrion Lannister
Posted: 27 September 2020 23:20:10(UTC)
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Joe 90;130808 wrote:
ANDREW FOSTER;130791 wrote:

Buy new. Take the finance deal with the "deposit contribution" then pay off the balance after a month. You can do that.

Get the discount, the salesman gets his bonus. Everyone happy except the finance company.


This is precisely what I did, at the salesman’s suggestion. Got a £2k deposit contribution along with a decent discount. Get multiple quotes from Carwow then take the lowest one to your local dealer and ask them to match it.

I ended up with close to 20% off the list price.


When was this, and make of car?

My intention was to do this with a new BMW about 4 years ago (financed by BMW finance) but was shocked when presented with the payment sum required. It included virtually all the interest due on the remainder of the loan period. This was contrary to what I was told by the salesman.

The adage “ never trust a car salesman” is apparently as true as ever.

I did get a fantastic discount on the sales price though! 😀
1 user thanked Tyrion Lannister for this post.
Rob B on 28/09/2020(UTC)
MrInvest
Posted: 28 September 2020 07:29:50(UTC)
#23

Joined: 22/11/2019(UTC)
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I really like Tesla's system where you can just order it online in 5 minutes. No salesman pitches.

Note - I have never used the system as I can't afford a Tesla!
1 user thanked MrInvest for this post.
Rob B on 28/09/2020(UTC)
Newbie
Posted: 28 September 2020 17:11:00(UTC)
#24

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My suggestion would be to look as closely at the finance agreement as the car itself, if not more.

Monies are made from Finance, warranties, service contracts add ons etc (similar to Printers).

Some lenders have wisened up and now do not allow you to repay early without paying some some if not all the interest they would have earned - but camouflaged with legal gibberish as charges, or exit / administrative fees etc.

Many institutions are now financial in nature be it be it car dealers, furniture showrooms to your local supermarket.
3 users thanked Newbie for this post.
Tim D on 28/09/2020(UTC), Rob B on 28/09/2020(UTC), Tyrion Lannister on 28/09/2020(UTC)
Michael Grimes
Posted: 23 October 2020 14:58:38(UTC)
#25

Joined: 14/07/2015(UTC)
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In 2017 we bought a 12 month old Volvo XC70 with 12000 miles on the clock for £25k.

By August 2020 it had done 29,000 miles and would soon need new front tyres and brake pads all round cost about £600. Plus probably new batteries and other consumables in the next 3 years. The standard yearly service at an independant volvo dealer was £200 a year.

The same dealer contacted us offering £18,350 for our car against a brand new 20 registration XC60 B5 petrol Inscription model. The deal was 20% discount on the car including extras and with free 3 year finance with a £1500 contribution (which seemed strange). The balance of c £18500 is about £500 a month. We added a 3 year Volvo sevice deal for £399.

We got a brand new car for less than a 12 month old demonstrator with 12000 miles on the clock on sale at the same dealer

1 user thanked Michael Grimes for this post.
Rob B on 23/10/2020(UTC)
Emma Mcgee
Posted: 27 February 2023 20:23:58(UTC)
#26

Joined: 27/02/2023(UTC)
Posts: 1

I accidentally ran into this discussion and found it really interesting.
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