22 May 08
Be money wise
Now you can talk finance. Whether you're discussing straight hire-purchase or the more complicated PCP (personal contract purchase), the cost of borrowing demonstrated as an APR rate (eg 10%) must be clearly displayed.
The salesman might mention a lower base rate (eg 6%), but this doesn't represent the true cost. Check what the banks are charging for personal loans and if the dealer's rate is higher, try haggling it down.
Job done
If there's a 0% interest offer it's likely this is paid for by the manufacturer, not the dealer, so don't let the salesman lump the loan saving in with the list-price discount. Check any loan agreement for unnecessary extras like GAP (aka shortfall or vehicle replacement) insurance, or credit protection. You may want them after the salesman's explained what they are, but you probably won't once you see the difference they make to the monthly figure.
Check that the VED (car tax) is 12 months and not six. It's also still true that new cars are sold without floor mats or a full tank of petrol. Try asking for them before you shake hands. Same goes for metallic paint: make sure that extra is factored into the final price and again, see if they'll throw it in for free.
With the right price agreed on, you'll have earned a cup of coffee and a sit down. That nice squashy dealer sofa will do just fine.
