26 Feb 2015

A question about : Is it cheaper to buy for cash

Hi all,
I have suddenly found myself a single mum unexpectedly and I trying to navigate the maze of my finances etc.

I need to buy a car. I have some cash I can use, not a lot but enough to get an older car. I have been lucky enough to have had company cars before I met my husband followed by him buying the car.

So I haven't any experience of buying. I have seen a car I quite like at a garage ear me on the auto trader website but the listing seems to be all about the finance. I am wondering if the finance is how they make their money? I suppose what I am trying to ask is: 1. How do I find out whether the car is a good deal? 2. Does paying in cash give me more bargaining power or less? 3. What else should I be looking out for so I don't get ripped off!

Thanks in advance for your help which is gratefully received :-)

Best answers:

  • Hi I am in Plymouth. I don't want to take out finance as I am probably going to be having to apply to take on the mortgage, which will be quite tight anyway, don't want any reason to upset the applecart :-)
  • Try buying from a private seller with your cash, it will save you the most money, take someone who knows something about the car you are look at.
  • 'Not a lot but enough'. So, what is your budget? Yes, garages do make most of their money selling finance, but not on a Ј500 banger.
  • Cash makes no difference to a bona fide dealer, it costs money to process. However private sellers and driveway dealers love it, it positively greases the wheels to see a wad of cash in that scenario.
    Don't go shopping at a bombsite dealer with a range of sub Ј1k bangers either. Any honest dealer will know of the likelihood of comebacks/problems and either send them to auction or pass them through the trade.
  • HI all thanks so muchf or all your advice - I have found a suitable car which I am really happy with... Thanks for taking the time to respond to me... :-)