Do car dealers negotiate these days.

[womaninatightspot]

Thinking about ditching my ancient vw polo as expensive repairs on the horizon. I quite like the idea of a Kia Rio c £14400 due to long warranty. I'd have to wait till October which is fine. They offer a 1250 contribution to deposit on pcp but seems an expensive way to finance a car. Bank finance would be much less interest. So do they do a cash discount if you're not trading in like they used to or has that all gone?

Second hand cars are selling at premium prices just now as there is a shortage and delays of new cars due to a shortage of semiconductors. I don't think they are falling over themselves to give you great deals right now. However I don't see how your bank finance would cost you less as you will be having to buy it outright at full price as opposed to the PCP price which is cheaper as it is only for a set number of years. You will have higher bigger monthly payments with a bank loan but the car is yours from the start.

I think the interest overall was cheaper with the bank as it was 3.4% also I could spread it over 60 months if I wanted to avoiding painful "optional" payment.

It depends what you want the outcome to be - own the car outright from day one with bank loan or their car loan or a PCP where you never own the car until you pay the final balloon payment?

I don’t think that there’s more than a few hundred pounds margin on a “normal” new car nowadays, and as they are likely to get extra for selling the finance there doesn’t seem to be much wiggle room.

They do tend to make good money on extras and servicing, so it may be better to ask to have the first couple of services included.