Talk Quesada forum

I am looking at buying a secondhand car. The price for cash is higher than the price for finance. I assume the reality is that after finance charges, the finance costs are actually higher than the cash price. Does anyone know the average cost of finance? I am looking at something around €12,000.

The full price using finance is shown on the car by law

So why is the finance price lower than the cash price?

Precio al contado: 14290 euros

Condiciones de la financiación
12190€ Precio financiado.
14290€ Precio de contado.


Cash price: 14290 euros

Conditions of financing

12190€ Financed price.

14290€ Cash price.


Or is the translation incorrect?

Where is the initial deposit

Iancorker wrote:So why is the finance price lower than the cash price?

Precio al contado: 14290 euros

Condiciones de la financiación
12190€ Precio financiado.
14290€ Precio de contado.


Cash price: 14290 euros

Conditions of financing

12190€ Financed price.

14290€ Cash price.


Or is the translation incorrect?

Probably similar to many financed vehicles in the UK. The dealer gets a commission from the finance company, and passes some of that commission on to the customer if they take out finance.

My last car in the UK was £32000 cash, or £29500 on finance due to a £2500 dealer contribution. I took the finance, paid the deposit, got the car, waited until the day after the ROW period, and then paid off the finance.

The commissions some finance companies pay the dealers can be eye-watering, so it's nice to see at least SOME of it benefit the customer!!!

I know I sound thick Row period! Thanks

If you finance the car use your bank. The finance provided by the dealers usually results in you paying about 50% more. The cheaper price shown is not the "Final" price. It's the price they are going to finance you. Just calculate the deposit+monthly+final payment...you'll be in for a shock

Mort wrote:I know I sound thick Row period! Thanks

Right Of Withdrawal.

Nolant wrote:If you finance the car use your bank. The finance provided by the dealers usually results in you paying about 50% more. The cheaper price shown is not the "Final" price. It's the price they are going to finance you. Just calculate the deposit+monthly+final payment...you'll be in for a shock

If you use the bank, you won't receive the dealer contribution. If you have the cash but there's a significant reduction for taking the finance, you're better off taking the finance and settling as early as you can.

Of course - always read the Ts and Cs...THOROUGHLY.

I would never take out a finance contract if I had the cash to pay for something. Just offer them the 'finance' price they advertise with in cash and otherwise no deal.