Why finance is better than cash for buying a new car

Cash has historically been king when it comes to getting the 
best deal on a new car, but our research reveals you 
could be up to £12,000 better off by entering a finance deal...

11 July 2018
Audi A3 Sportback

Family cars

The biggest savings here are on three of today’s very best family hatchbacks: the Audi A3 Sportback, Volkswagen Golf and our current class trophy holder, the Skoda Octavia. Get any on finance and you’ll be £2500 better off than if buying. 

  • Audi A3 Sportback 30 TFSI SE Technik
  • List price  £22,725
  • Cash Target Price  £21,032
  • Finance Target Price  £18,532
  • Finance saving  £2500
Skoda Octavia
  • Skoda Octavia 1.0 TSI S
  • List price  £18,315
  • Cash Target Price  £16,653
  • Finance Target Price  £14,153
  • Finance saving  £2500
Volkswagen Golf 1.5 TSI Evo Match 5dr

Executive cars

A high-end version of the BMW 3 Series offers the biggest saving (27% off Target Price), but you’ll save 30% (£5000) with a lesser 320d. There are also super deals on the Mazda 6, a great all-rounder, and the brilliant-to-drive Alfa Romeo Giulia. 

BMW 3 Series saloon front
  • BMW 3 Series 335d xDrive M Sport
  • List price  £47,190
  • Cash Target Price  £43,002
  • Finance Target Price  £37,002
  • Finance saving  £6000
Mazda 6 verdict
  • Mazda 6 2.0 SE-L Nav+
  • List price  £23,595
  • Cash Target Price  £23,070
  • Finance Target Price  £18,570
  • Finance saving  £4500
Alfa Romeo Giulia driving
  • Alfa Romeo Giulia 2.0 TB 280 Veloce
  • List price  £39,690
  • Cash Target Price  £37,478
  • Finance Target Price  £33,978
  • Finance saving  £3500

Luxury cars

The largest finance saving on the new car market, of £12,000 (24%), comes on a high-spec BMW 7 Series, but if you go for a cheaper 730d, the £10,000 cut represents a 36% saving, reducing the total payable from £68,000 to £50,000. 

BMW 7 Series 2019 front right static
  • BMW 7 Series 750i xDrive
  • List price  £83,875
  • Cash Target Price  £77,194
  • Finance Target Price  £65,194
  • Finance saving  £12,000
Audi A8 2019 front right tracking shot
  • Audi A8 50 TDI quattro
  • List price  £71,200
  • Cash Target Price  £61,057
  • Finance Target Price  £57,182
  • Finance saving  £3875
BMW 5 Series driving
  • BMW 5 Series 540i xDrive SE
  • List price  £50,230
  • Cash Target Price  £44,735
  • Finance Target Price  £41,235
  • Finance saving  10£3500

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