When it comes to cheap car finance, the lowest rate isn’t always the best deal for you.


Do you want to pay full retail price or do you want to negotiate a deal?

As always there is no free lunch and if it seems too good to be true it usually is.

Motor Vehicle manufacturers have been struggling to motivate people to buy slow moving models in their range. To tackle this they have commenced on a program known as subvention.

Subvention is the dealer/manufacturer subventing (prepaying) the finance interest out of the margin on the car (discount you would normally get) so that you think you are getting an unbelievably low interest rate. The banks will not discount their wholesale rates so SOMEONE HAS TO PAY and guess what – IT’S YOU!

Go into your dealer and ask what the best price is that they will do on the car. They will come back and ask whether or not you want the cheap finance. This indicates to them whether they will negotiate on the price or not. We are all used to buying a car at the best price. Not any more!. Now you get little or no discount off the retail price of the car and the dealer/manufacturer pays the margin that you would normally get to the financier to prepay the interest.

Do you want to pay full retail price or do you want to negotiate a deal?

Bargain as hard as you can with these people on the price! Then come to us and get a quote on the finance. Also you can simply phone us and we will source the car for you from our approved dealer network.

The latest offering is guaranteed repurchase amounts at the other end of the contract. Read the fine print! One of the largest manufacturers has recently embarked on this but if you want a guaranteed buy back price the rate charged is higher. The other thing to note is that the guaranteed buy back price is only valid if you actually get to the end of the contract. It is an industry fact that the manufacturers are banking on that most people upgrade their car prior to the full term of the loan. There are also mileage and condition restrictions as well.