New Car v Used Car

Information and questions about driving in Andalucia, buying or importing cars and motorbikes plus legal issues surrounding taxes and licenses.
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Devils Advocate
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Re: New Car v Used Car

Postby Devils Advocate » Wed Nov 07, 2018 9:51 am

Having spent time working in the car trade nothing has changed since. The dealer no matter where they are based or what they sell only has a certain pot of money in the car.

To entice a sale he can slash screen price or offer a bogus 0% deal, or give you a huge p/x valuation on a shed.

Also dealers here still work for a bonus (do they in Spain I wonder?), ie number of cars sold in a given period. If you touch for a deal when they are 6 cars short with 2 days left then that tends to be the best deal you'll ever get in my experience. They will actually blow money on a car or 2 to hit bonus.
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Re: New Car v Used Car

Postby alpineSi » Wed Nov 07, 2018 10:32 am

An acquaintance here works for a VW dealer and when we discussed the deal on our SEAT with him he said the dealer probably wasn't making money on the car but would get his commission on the finance. I imagine for a lot of them the commissions on that and associated insurances (as I said before, they signed us up for four different types of insurance!) are what keep them going until the cars are due service or repair.

From what I read, it seemed that the best time to buy new this year was before the new WLTP emissions tests were brought in on 1st September as dealers were pushed to get rid of stock tested under the old system which they couldn't sell under this new one. They were forced to register it all before the deadline and then sell it on (as "0Km"). We saw massive discounts on a lot of cars across various brands but notably the bigger executive/luxury ones.

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Re: New Car v Used Car

Postby markwilding » Wed Nov 07, 2018 4:59 pm

They offered me a massive discount for taking out finance, over 2 thousand pounds. Even taking into account the interest, i thought it was worth it. It seems to me is that one of the reasons why Santander offeres such favourable terms is they want to try to sell you other products.
Their problem with us was that we took the loan out in my wife’s name but gave them my contact details. When they called to try to sell other products, they always asked for my wife but I told the salesperson unless they give me the reason for calling, I wouldn’t pass the phone to them.They refused under data protection rules and after a couple of tries, gave up so now I only get the odd text message with an advert.

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Re: New Car v Used Car

Postby gerrynag » Fri Nov 09, 2018 1:09 pm

The quoted prices I have seen for new cars, always assume that you are taking out finance and as you say if you want to pay cash are much more expensive. Trouble is that I am old school and I hate having credit, especially if I have the money to pay cash for the item.
I wondered if anyone has had any success buying for cash without being penalised for it by paying a couple of k more?

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Re: New Car v Used Car

Postby TorreDelAguila » Fri Nov 09, 2018 5:43 pm

Bit like the case that Currys/Dixons/... made more out of selling the extended cover than on the article itself.
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Re: New Car v Used Car

Postby Pamela1 » Fri Nov 09, 2018 11:26 pm

gerrynag wrote:The quoted prices I have seen for new cars, always assume that you are taking out finance and as you say if you want to pay cash are much more expensive. Trouble is that I am old school and I hate having credit, especially if I have the money to pay cash for the item.
I wondered if anyone has had any success buying for cash without being penalised for it by paying a couple of k more?


Same here, the less i have on credit the better i sleep and if i want something i can't afford i'd rather wait till i can...

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Re: New Car v Used Car

Postby Wicksey » Sat Nov 10, 2018 11:25 am

gerrynag wrote:The quoted prices I have seen for new cars, always assume that you are taking out finance and as you say if you want to pay cash are much more expensive. Trouble is that I am old school and I hate having credit, especially if I have the money to pay cash for the item.
I wondered if anyone has had any success buying for cash without being penalised for it by paying a couple of k more?


This is what we found which made it so difficult to actually obtain the price of a new car. We didn't want credit either, so in the end bought my 2.5 year old second hand car for probably 40% less than the new version and it's all paid for without monthly credit. I really don't want to pay interest and find the pricing policy too complicated to work out how much you actually pay in the end.

There seems to be a lot of small print and I know friends who have been pleased with the overall deal they have got and were told they could pay of the finance early if they wished, but then I have also seen there are penalties for that. If you really want to buy a new car though there seems to be little alternative nowadays.

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Re: New Car v Used Car

Postby 1bassleft » Sun Nov 11, 2018 2:07 am

A fair number of nearly-new cars on MilAnuncios also look like a good deal but, further down the description, it's a price if you take out finance and paying upfront means they'll stick a grand or even two on the advertized price. It annoyed me, until I got so used to seeing it.

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Re: New Car v Used Car

Postby Lyric » Sun Nov 11, 2018 10:13 am

And some fall foul. On my present car, bought from the main dealer in Malaga, the car was just what we wanted, I say we as it is not what I would have bought for myself but dogs and SM won, the price was agreed, a good price, he gave me a trade in which was more than I had paid for the car, and then finance reared it's head. I actually wanted finance to retain capital, he pushed finance for that was where he would make his money, but it was denied due to my age/income.
Bless, the dealer held his price and I drove away with the best deal I think I have ever had.
Judging by his advertising he marked up my car 1000€ gave it a polish, and flogged it on within two weeks.

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Re: New Car v Used Car

Postby Pamela1 » Sun Nov 11, 2018 10:20 am

Great to read a positive post Lyric...well done for walking away with a deal you were so happy with and judging by your post the garage did well too with your old car..

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Re: New Car v Used Car

Postby alpineSi » Sun Nov 11, 2018 2:41 pm

Wicksey wrote:This is what we found which made it so difficult to actually obtain the price of a new car. We didn't want credit either, so in the end bought my 2.5 year old second hand car for probably 40% less than the new version and it's all paid for without monthly credit. I really don't want to pay interest and find the pricing policy too complicated to work out how much you actually pay in the end.


That's deceptive though, I think all dealers here make nearly new used cars look good by comparing them to a 'new' price which is an inflated fantasy. You never actually know what the new version is worth unless you start negotiations for one of those, which I suspect they wouldn't do honestly if they know you want to buy second hand.
The price we offered and got for new (with finance) was more or less 35% off list price. I imagine our situation was a bit rarer than most in that we walked in with an offer for a specific model and was ready to walk out if the dealer wouldn't meet it, but it worked. It just seems that the snobby 'second name on the V5' depreciation we have in the UK isn't a thing here.

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Re: New Car v Used Car

Postby markwilding » Sun Nov 11, 2018 4:09 pm

Wicksey wrote:
gerrynag wrote:The quoted prices I have seen for new cars, always assume that you are taking out finance and as you say if you want to pay cash are much more expensive. Trouble is that I am old school and I hate having credit, especially if I have the money to pay cash for the item.
I wondered if anyone has had any success buying for cash without being penalised for it by paying a couple of k more?


I always go for the best price which must take everything into account. I had the cash to buy my last car but was refused the discount if I didn’t go for credit. Had the interest worked out to be more than the discounr, I would have paid for it outright.

Taking out the credit has other benfits as well, should there be problems with the car.

A few years back when interest rates were higher, I definitely would have taken up the offer of interest free credit and kept my my money in a high interest savings account. It makes good financial sense to me.

These days Apart from the car, nothing is on credit because it generally costs more to have it.

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Re: New Car v Used Car

Postby Devils Advocate » Sun Nov 11, 2018 4:16 pm

What sort of interest rates do these guys charge then over there, which then enables them to knock up to 35% of the retail price.

Not making sense to me, never seen these practices played to that extent over here, what's different there?

I remember years ago when interest rates were high making the money back on the finance but times have changed, people are now switched on to rates and borrowing is cheap.......we are talking HP here aren't we?

PCP is a different matter, it allows people to get in to cars via a 2 year hand it back deal with a low monthly payment on a car they'd probably never afford to buy on HP or with cash. Not for me I'm afraid.
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Re: New Car v Used Car

Postby costakid » Sun Nov 11, 2018 4:35 pm

[quote="Devils Advocate”] PCP is a different matter, it allows people to get in to cars via a 2 year hand it back deal with a low monthly payment on a car they'd probably never afford to buy on HP or with cash. Not for me I'm afraid.[/quote]

PCP is exactly that, you are getting into a car you cant afford. They look attractive for that reason. Higher interest on the balloon part of the finance than normal.

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Re: New Car v Used Car

Postby katy » Sun Nov 11, 2018 4:35 pm

DA Glad you pointed that out, was my thoughts that the interest paid back must be huge. Bad enough the car depreciating without paying loads of interest. No matter what deals I am offered I always have the feeling I have been done, a lot here offer free extras, everything but a cuddly toy!

What is PCP?

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Re: New Car v Used Car

Postby Devils Advocate » Sun Nov 11, 2018 4:40 pm

Agree CK 100%

Katy, irrespective of how people view their deal on the car the fact remains I pointed out earlier...........the dealer only has so much money in a car to play with. No such thing as interest free credit, someone is paying for it.
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Re: New Car v Used Car

Postby katy » Sun Nov 11, 2018 4:41 pm

:lolno: :lolno: An ad flashed up when I did my post. a Jaguar for £246 per month.

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Re: New Car v Used Car

Postby Devils Advocate » Sun Nov 11, 2018 4:43 pm

Don't do it lol......it's PCP
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Re: New Car v Used Car

Postby markwilding » Sun Nov 11, 2018 5:33 pm

I don’t remember exactly how much the interest is but it was around 6 per cent.
There were various other discounts as well but the discount for the credit was by far the highest I remember negotiating an extra 500 hundred on top and getting about 600 to 700 for being self employed.
I rembember working out that the cost of credit, which is easily worked out now by multiplying the 48 monthly payments, was slightly lower.

These offers change regularly and this particular type wasn’t available 7 years ago when I bought my previous one. The first Kia Sportage was actually more expensive than the more recent one I bought.
Last edited by markwilding on Sun Nov 11, 2018 5:44 pm, edited 1 time in total.

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Re: New Car v Used Car

Postby El Cid » Sun Nov 11, 2018 5:34 pm

Surely PCP is suitable for some people. If you want a new car every year and are happy to pay every month for ever, it's a good deal. As a way of buying a car that you want to keep after the 3 years is up, it's not really suitable as you have to pay a big lump sum to keep it. However, I understand you can get finance on the lump sum.

The calculated interest rates in Spain are high because it has to include the crazy 10% government tax on the amount borrowed.

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