Sometimes it can work out good using the manufacturers finance deals proving you have the cash to pay the balance off at the correct time.
For example I change my Vauxhall corsa every year (Just had the settlement fee so these numbers are accurate). I use Vauxhalls FDA scheme (Finance Deposit Allowance) and get a further discount of £1,500 of the car.
I loan £5,000, but only pay the first 4 payments which total about £645. Then settle the balance which costs £4,850. Overall I have shelled out £5,495 for a £5,000 loan. But I got £1,500 of the car, so overall I saved £855 and used someone elses money for 4 months.
Always check out if these deals are to be had, but you have to settle the balance early or the manufacturers win.
Also ensure there is no early settlement penalty. The earlier you settel the bigger the overall savings are. But vauxhall cottoned on to this which resulted in a minimum 4 months/4 payments.
Looks like you may be able to do this with that finance deal but do the numbers carefully to see if it works.
Note also the dealers make money on the finance, sometimes that is actually where the real profit is. Hence overall you can often get a better deal using the dealers finance (but don't tell them you plan to sttle early because this cuts their profit margin).
Chris
I might have a spare set left.....
