Cars that are cheaper on finance than cash

Some of Britain’s best and most popular new cars are cheaper to buy on finance than with cash, according to our latest research...

We’ve analysed more than 6000 Target Price offers and found that around one-in-seven new cars are cheaper to buy on finance than by paying with cash.

BMW 5 Series cornering front three quarters

That’s even after taking into account the Target Price cash discounts available from dealers, and the cars include some of the UK’s most popular.

Pat Hoy, head of What Car?’s Target Price mystery shopping team, said: “Buying on finance works out cheaper when the car maker’s deposit contribution is greater than the maximum discount offered for a cash purchase – as indicated by our Target Price saving – and the finance interest rate is either zero or low enough not to cancel out that saving.”

Let’s take a look, starting with small cars:

Peugeot 108 1.0 72 Allure 3dr

Peugeot 108 1.0 72 Active 2-Tronic

List price: £13,930

Cash Target Price: £11,722

Total finance cost: £10,839

Finance saving: £883

Toyota Yaris 1.5 VVT-i Icon

2020 Toyota Yaris cornering

List price: £16,580

Cash Target Price: £15,528

Total finance cost: £14,653

Finance saving: £875

Ford Fiesta 1.1 75 Trend 3dr

Ford Fiesta

List price: £16,135

Cash Target Price: £15,341

Total finance cost: £14,819

Finance saving: £522

Now let’s take a look at family SUVs:

Vauxhall Grandland X 1.5 Turbo D Griffin

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

List price: £30,130

Cash Target Price: £28,453

Total finance cost: £26,953

Finance saving: £1500

Peugeot 3008 Hybrid4 300 GT-Line

Peugeot 3008 Hybrid 2020 panning LHD

List price: £43,510

Cash Target Price: £42,655

Total finance cost: £41,937

Finance saving: £718

Now let’s look at family cars:

Ford Focus 1.0 Ecoboost 125 Titanium X

Ford Focus 2020 RHD front left tracking

List price: £23,935

Cash Target Price: £22,040

Total finance cost: £20,790

Finance saving: £1250

Peugeot 308 1.5 BlueHDi 130 Allure

Peugeot 308 front - 19 plate

List price: £25,865

Cash Target Price: £22,817

Total finance cost: £21,568

Finance saving: £1249

Kia Ceed 1.0 GDi IST 2

Kia Ceed front white - 19 plate

List price: £18,850

Cash Target Price: £17,678

Total finance cost: £16,847

Finance saving: £831

Now let’s look at large SUVs:

Volkswagen Touareg 3.0 V6 TDI 231 4Motion SE

Volkswagen Touareg front - 19 plate

List price: £46,470

Cash Target Price: £43,063

Total finance cost: £41,563

Finance saving: £1500

Ford Kuga 1.5 Ecoboost 150 Titanium

Ford Kuga 2020 RHD front left tracking

List price: £27,855

Cash Target Price: £26,084

Total finance cost: £24,905

Finance saving: £1179

Kia Sorento 2.2 CRDi GT-Line

Kia Sorento (2016-present)

List price: £38,410

Cash Target Price: £36,613

Total finance cost: £35,564

Finance saving: £1049

Now let’s look at executive cars:

Volvo S60 2.0 B5 R Design

LT Volvo S60 drive by

List price: £39,035

Cash Target Price: £36,386

Total finance cost: £34,367

Finance saving: £2019

Skoda Superb 1.5 TSI SE

Skoda Superb executive class

List price: £24,850

Cash Target Price: £22,812

Total finance cost: £22,165

Finance saving: £647

Now let’s look at luxury cars:

BMW 7 Series M760Li

BMW 7 Series M760 Li xDrive

List price: £141,710

Cash Target Price: £128,696

Total finance cost: £118,449

Finance saving: £10,247

Jaguar XF 2.0d R-Sport

Jaguar XF

List price: £36,740

Cash Target Price: £33,414

Total finance cost: £31,570

Finance saving: £1844

BMW 5 Series 530d M Sport

BMW 530e front cornering

List price: £50,925

Cash Target Price: £43,200

Total finance cost: £41,630

Finance saving: £1570

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