Quote:
Originally Posted by Mdr10
Hi. May I ask what kind of discounts people are seeing recently?
I won't be taking finance so preferably I would be interested in what people in similar circumstances managed.
Initial reaction from dealer has been a bit discouraging.
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I think you'll find that dealers do not like cash buyers (or ones getting their own finance)- there's less margin for them.
You need to go to the dealer armed with all your facts and figures pre-worked out. Research, Research, Research!!
I needed finance so I asked for a 8% discount, based upon getting my own independant finance at 5.9%APR over two years. Ended up getting 10% discount based upon using using the dealer BMW select finance (PCP) at 7.5% APR. With the higher BMW APR it meant 8% discount
to me- but additional kick back to the dealer from BMW finance.
The BMW Select PCP like most finance forward load the interest. So say the interest over 2 years on £37k is £3, they will add it the finance then set the interest at 0%. So a £37k finance becomes £40k with flat rate payments.
Once you are aware of the extra sums dealers receive with Finance, GAP insurance, Bodywork protection etc etc- you can see why they are less helpfully to a pure cash buyer.
Reverse logic might be it's cheaper to take the finance and pay it off immediately rather then a pure cash transaction.
I'd be interested to find out what discount you do get in the end.
I have an excel finance calculator if you need it.