Hello Forum

I have ordered an RRS AB costing about 82K and i was wondering if i am better off paying outright for the car or go on finance. I am hoping to keep the car until LR release a plug in hybrid RRS which could be a year to several years so if anyone can explain the pros & cons of paying outright or on a finance plan it would be much appreciated as getting advice from the salesman would never be impartial.

Thanks

occasional deals include a service plan if taking finance plans, even if you pay it straight away

see which suits best on paper and as interest rates are so low, you don't get much anyway with it in the bank, but you're going to pay more out in interested on finance

Hi,

I usually pay for my cars on a debit card having sorted out the cash myself.

TSB are doing loans over £7500 over 5 yrs @ 2.9% APR. You can over pay and if you pay down to the last £50 and wait a month you only pay an interest penalty on the closing balance (the. £50).

Did it on my RRS and may need to do it for SWMBO's New D5 at the end of March.

Scrumps Somerset - Where the apples do grow and the cider do flow!
2021 Defender 90 D250 HSE in Tasman with white roof.
24MY D300 AB - Verasine Blue - 😀
19MY SDV6 AB - Byron Blue - Gone
17MY D5 SDV6 HSE - Firenze Red - Gone
16MY SDV6 AB -Aruba Silver - Gone
13.5MY SDV6 "HSE Black" - Baltic Blue - Gone
10MY TDV8 HSE Galway Green - Gone
14MY D4 HSE in Scotia Grey - Gone
05 TD5 D90 CSW in Cairns Blue

Land Rover finance is 6.9% I think so if you can make more than 6.9% by investing the money into something else then finance would work out best.

If it's going to sit in the bank doing nothing then pay cash for the car.

Just a quick word of caution. If you can afford to pay cash for the vehicle at the moment I would do so. Yes, interest rates are low and have been for a considerable time, but we are heading towards a new financial paradigm and it is unlikely that they will stay low for a great deal longer. Therefore I would not recommend any sort of finance deal over the near term.

Just an opinion.

Old Jock 2018 (MY19) Jaguar F-Pace R-Sport 300PS Petrol in Caesium Blue with many bells and whistles.
2015 RRS HSE SDV6 Firenze Red with Santorini Panoramic Glass Roof, gone but not forgotten.

There is currently a great finance contribution from Land Rover Finance. £1500 off an HSE, £2000 off a Dynamic and a whopping £3000 off an Autobiography. You won't get these paying cash!

I have a friend who bought a new evoke he asked the dealer the same question and the sales guy told them that by getting a finance deal they could offer them better discounts, higher trade in prices (if applicable) and often some minor things like matts etc. Then when you get home wait a few days and pay it off in full so you don't get any penalties. So you still get the savings and very minimal or if any interest charges.

RRSman wrote:

There is currently a great finance contribution from Land Rover Finance. £1500 off an HSE, £2000 off a Dynamic and a whopping £3000 off an Autobiography. You won't get these paying cash!

It's against the law for a car dealer to discriminate 'discount' between a cash and a finance purchaser, which is why they now call it "deposit contribution" rather than discount. But as stated in the post above, in a finance agreement's first 14 days there is 'cooling off period' where you are legally allowed to pay off the entire finance agreement without any interest penalty whatsoever. Dealers are trying to combat this by putting new clauses in where you can't pay it off, but that means they would have to remove any 'deposit contribution'. Catch22 for them, and a win for the consumer.

BTW, 3.5% is hardly "Whopping" amounts of discount! Would you say c£30 off a £1000 TV is a "Whopping" amount of discount...  SOLD - MY16 SDV6 Autobiography Dynamic - Fire Engine Red, Fixed contrast pan roof, TV, Dual Screen, 5+2, Privacy, Noble paddles.

RRSman wrote:

There is currently a great finance contribution from Land Rover Finance. £1500 off an HSE, £2000 off a Dynamic and a whopping £3000 off an Autobiography. You won't get these paying cash!

My advice (and what I did this time and various times with other cars) is to take the finance
get the deposit contribution
Get the car
withdraw from the finance within 14 days paying nothing except the few days interest. (About £15 in my case I think)
Pay off the amount financed (car cost minus deposit minus deposit contribution)

This way you get the best of both...

Have a search around on the internet, the right to withdraw only works if you are financing less than about 60k though, so beware on a car like this!

Of course this law in our favour might go when we leave the EU but that's a different discussion.

Would this still work when there is no L.R. finance contribution, only dealer discount? I hope there is not stipulation that you can't pay the full amount off within the 14 days? SVR has no L.R. finance contribution hence asking the question...

I can't say I've ever heard of a £60k limit, I know several people who've done it on £90-100k cars after receiving maximum discount.

You can do it with any dealer finance taken out regardless of any discount or dealer contribution. SOLD - MY16 SDV6 Autobiography Dynamic - Fire Engine Red, Fixed contrast pan roof, TV, Dual Screen, 5+2, Privacy, Noble paddles.

Any dealer discount, or contribution is kept.
Let's say you were buying an Audi S5 (a real example)...
Car cost £46,000
Dealer Discount: £4,000
Audi Finance Contribution: £4,000
Finance Deposit: £18,000
Amount to Finance: £20,000

In simple terms, car is £46k, I get £8k discount via deposit contribution and dealer discount.
Thus discounted price = £38k...
So I walk in, pay £18,000, and take £20,000 on finance.
Drive away in the car
Phone up, withdraw from the finance (withdraw - do not settle!)
Audi say you have to pay £20,000 plus about £7 interest.

Net result.
You pay £38,000 and get the car.


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There are many references but in summary...

http://www.which.co.uk/consumer-rights/reg...-agreement

https://www.vwfinance.co.uk/en/privatecust...early.html

(I'll take the VW finance terms since I can find them easily, but they all follow the same law)..

Right of Withdrawal
Under the Consumer Credit Directive you are within your right to withdraw from your finance agreement but not the vehicle purchase without giving us any reason if:
the credit that you take out is for £60,260 or less, you have regulated Hire Purchase, Lease Purchase or Solutions finance agreement and
you notify us verbally or in writing, using our contact details, that you wish to withdraw within 14 days of setting up your credit agreement.

Please note, once notification to withdraw has been requested, you cannot then change your mind and reverse the contract, as it will be processed immediately.

RRSman wrote:

There is currently a great finance contribution from Land Rover Finance. £1500 off an HSE, £2000 off a Dynamic and a whopping £3000 off an Autobiography. You won't get these paying cash!

Oh believe you me....So did I....and paying in finance