[BeeEmmDubleYuu]

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?

[kinhwear]

Well finance has a cost, but you may get a contribution from BMW Finance.
If so, then you can take it and then pay it off immediately and save some money.

[MrPogle]

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.

[gtthree]

Can I ask if you were to take out say BMW finance and repay within 14 days. Is the arrangement fee refunded?

[MrPogle]

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.

[kinhwear]

I paid mine off after the first repayment had been taken, had a £2,750 contribution from BMW.

[HighlandPete]

Originally Posted by MrPogle

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.

The very reason I paid cash for my current car, 'self-financed' it as the cheapest way to own it. Previous car was in a different financial climate, where returns on investments virtually paid the car payments without needing to sell assets.

[IanS100]

+1
The dealer went to great lengths to try to persuade me into finance but none of his figures stacked up, so cash it was.

[silo24]

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.