Hiya,
I've been offered a heavily discounted new vehicle @ £10,500. To take advantage of that price, I need to to:
1) Take out a bank loan (probably @ 9%) over 4 years.
2) Take out a dealer finance deal @ 13% apr over 3 years + optional final payment
3) Alternatively, the dealer can offer me a manufacturer-subsidised rate @ 5.5% apr over 3 years + optinal final payment BUT the car will cost £11,700.
The approx total amounts payable are as follows:
1) £12,500
2) £12,600
3) £12,700
I normally change my vehicle after two years... so I'm writing-off option 1, based on the fact that it's probably going to be a front-loaded loan. This leaves us with options 2 and 3:
If I need to settle early (by trading in my car after two years), which option will give me the lowest settlement figure: Option 2, or Option 3?
Kind regards,
Oms.