Why finance is better than cash for buying a new car

Cash has historically been the best way to get a good deal on a new car, but our research reveals you could save more than £10,000 by buying on finance...

Peugeot 3008 Hybrid 2020 front left tracking shot

Biggest finance savings on family SUVs

Peugeot 3008 - save £718

Model Hybrid4 300 GT-Line 

List price £43,510

Cash Target Price £42,655 

Total finance cost £41,937 

There’s more to the 3008 than bold looks; it’s rewarding to drive, has plenty of space and is as well equipped as pricier rivals. While most 3008s are best bought with cash, the range-topping GT-Line Hybrid is cheaper on finance. 


Vauxhall Grandland X - save £1500

New Vauxhall Grandland X vs used Audi Q5: which is best?

Model 1.5 Turbo D Griffin 

List price £30,130

Cash Target Price £28,453 

Total finance cost £26,953 

The Grandland X shares its mechanicals with the Peugeot 3008 and offers similar comfort and practicality. Most versions are cheaper on Vauxhall’s PCP deal; savings range from £1400 for the 1.2 petrol to £1500 for the diesel. 


Biggest finance savings on large SUVs

Ford Kuga - save £1179

Ford Kuga 2020 RHD front left tracking

Model 1.5 Ecoboost 150 Titanium 

List price £27,855

Cash Target Price £26,084

Total finance cost £24,905 

The Kuga is already well priced, and you can save on any model by taking Ford’s PCP deal. The biggest savings are on 1.5-litre petrol models, but you can save £1000 on the plug-in hybrid too; this has an electric-only range of 35 miles. 


Kia Sorento - save £1049

Kia Sorento

Model 2.2 CRDi GT-Line 

List price £38,410

Cash Target Price £36,613 

Total finance cost £35,564 

The Sorento is spacious and well equipped and all versions are fitted with four-wheel drive. All Sorentos are cheaper through Kia’s PCP finance; savings range from £457 on the cheapest KX-1 trim to £1049 off the pricier GT-Line. 


Volkswgen Touareg - save £1500

Volkswagen Touareg front - 19 plate

Model 3.0 V6 TDI 231 4Motion SE 

List price £46,470

Cash Target Price £43,063 

Total finance cost £41,563 

The Touareg is cheaper to buy than rivals such as the Audi Q7 before discounts, and lower trim levels are good value for money. All Touaregs are best bought on finance; it’s £1500 cheaper than cash across the whole range. 

< Previous: Best deals on family and executive cars | Next: Best deals on luxury cars >

Page 3 of 4

Spinner