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04-13-2016, 07:49 AM | #1 |
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Finance vs cash
If you guys had the money to buy an approved used car would you buy it as cash or still put it on finance?
Any advantages over picking either option? |
04-13-2016, 08:51 AM | #3 |
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Depends what else you could do with the cash. With interest rates like they are I'd be tempted to just buy the car with cash. Unless you are prepared to pay risk the money you will struggle to get 3%. Gone are the days when you could take the manufacturers finance at 5% and put the cash in the bank and earn 9% on it.
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04-13-2016, 09:56 AM | #5 |
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Be careful. You have a cooling-off period for any finance deal and people have used this to get a contribution and then say to the dealer "cancel the finance and let me pay cash or cancel the finance and I 'll give you the car back". This may work with a new car as the dealer does not want a slightly used car. However, if you have spent months tracking down the perfect AUC, the dealer may just ask for the car back.
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04-13-2016, 03:04 PM | #7 | |
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Quote:
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04-14-2016, 12:42 PM | #9 |
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Only reason Finance makes sense if you have the cash to pay upfront is if there is a Finance Contribution attached.
In that case, you may have to take the hit on a month or two's interest and the arrangement fee, but this can still be cheaper overall than paying cash. All depends on how they are funding the discounts. if BMW UK/Dealer, it will be available however you pay. If BMW Finance, then take the finance to get the discount and settle it later. You may be able to do this within 14 days, however best check your finance agreement and sales contract.
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