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7 Essential Facts You Must Know Before Taking Car Finance
1. There is no such thing as '0% Interest'.
Most so-called ‘Zero APR’ deals require a substantial deposit, sometimes as much as 30% of the value of the car.
Think about the interest that this money would be earning in your bank account if you left it there...
2. '0% Interest' = '0% Discount'.
The dealer here will usually sub vent the interest element of the deal by retaining most, if not all, of the discount which the manufacturer allows him to give away.
Newgate Finance negotiates substantial discounts with motor manufacturers, in return for marketing their products in a preferential way to our customers
- so You get the benefit of all this discount!
3. Is that ‘New’ car **Really** New?
Many car dealers register cars in their own name at the end of the month, in order to meet their monthly targets and pick up volume bonuses from the manufacturer.
These cars are then sold off as ‘unbeatable special offers’, however you will now be the second owner of the vehicle (the dealer was the first owner). This means the car will be worth less, down the line, when you come to sell it.
4. Must I pay a deposit?
Subject to status, Newgate’s normal terms are deposit-free, with simply the first payment made on delivery.
5. Can I always request a written quotation?
You must always request a written copy of any motor finance quotation and, under the consumer credit legislation, the dealer must give it to you.
6. What is a 'fair' part-exchange value?
Many dealers routinely over-value part-exchanges in order to create a favourable impression in the customer’s eyes. They then give you next to nothing off the new car, which is where they really make their money!
7. Do I have to collect the vehicle from the dealer?
Many dealers try to save money by encouraging the customer to come in to the dealership so you can enjoy a ‘full hand-over’ of the car. This saves them having to pay a courteous driver to deliver the car to your door.
All Newgate's cars are delivered to your door free of charge.
7 Essential Facts You Must Know Before Taking Car Finance
1. There is no such thing as '0% Interest'.
Most so-called ‘Zero APR’ deals require a substantial deposit, sometimes as much as 30% of the value of the car.
Think about the interest that this money would be earning in your bank account if you left it there...
2. '0% Interest' = '0% Discount'.
The dealer here will usually sub vent the interest element of the deal by retaining most, if not all, of the discount which the manufacturer allows him to give away.
Newgate Finance negotiates substantial discounts with motor manufacturers, in return for marketing their products in a preferential way to our customers
- so You get the benefit of all this discount!
3. Is that ‘New’ car **Really** New?
Many car dealers register cars in their own name at the end of the month, in order to meet their monthly targets and pick up volume bonuses from the manufacturer.
These cars are then sold off as ‘unbeatable special offers’, however you will now be the second owner of the vehicle (the dealer was the first owner). This means the car will be worth less, down the line, when you come to sell it.
4. Must I pay a deposit?
Subject to status, Newgate’s normal terms are deposit-free, with simply the first payment made on delivery.
5. Can I always request a written quotation?
You must always request a written copy of any motor finance quotation and, under the consumer credit legislation, the dealer must give it to you.
6. What is a 'fair' part-exchange value?
Many dealers routinely over-value part-exchanges in order to create a favourable impression in the customer’s eyes. They then give you next to nothing off the new car, which is where they really make their money!
7. Do I have to collect the vehicle from the dealer?
Many dealers try to save money by encouraging the customer to come in to the dealership so you can enjoy a ‘full hand-over’ of the car. This saves them having to pay a courteous driver to deliver the car to your door.
All Newgate's cars are delivered to your door free of charge.