禁漫天堂

I would like to just comment on one specific thing about the prices in Spain. Used cars! It is incredible how expensive they are and also how they are marketed.
The websites for car dealers all show what appears, at first glance, to be a sale price - as we would expect. (Still higher than UK and Germany in particular).
BUT, when you read the small print, the given price assumes financing, often over 6 years, which is crazy for a car anything between 5 and 9 years old. If you want to pay cash, the price jumps up by 1500 - 2000 euros, which makes the car phenomenally expensive!!
It seems that Spain continue to push people down the credit route and that will only end in tears. Again.

When I bought my last new car in spain, the sales lady said聽 if I took finance over two years on part of the price,聽 I would save 800 euros more than paying cash.聽 聽

I checked the figures.聽

I had 2,000鈧� trade in for my old car and 800 more off the new price.聽 聽I made a DD with my bank and accepted the saving

I still cannot see why I got that deal.聽 聽Usually cash is king

I just bought a used car and had the same questions about cash vs. financing. The salesman (an expat Brit) said it works like this:

Say the cash price of the car is 8000 euros vs.7000 euros with financing. If you opt for financing, the bank pays the 1000 euro difference to the dealer so there's no loss to the seller. The snag is that the buyer is then locked into a five-year loan contract with the bank.

The agreement has no way to pay it off any earlier, so the buyer ends up paying for five years on a used car -- not the smartest financial move anyway -- and will probably come out-of-pocket a total of 9000+ euros over the period of the loan.

I grant you the logic of a higher price for cash is elusive at first glance -- and it could make more sense with a new car than a used one -- but things are not always as they seem. Do the math.

PS: You might want to insist on paying by credit card and collecting the airline miles. The payoff can be even more interesting. I split the purchase between two new cards that offered big bonuses for spending X dollars within 3 months of issue [and had no foreign transaction fees]. In my case that was worth 110,000 miles in addition to the miles I earned on the purchase itself!

If I did not make it clear

I paid 800 less by taking finance.聽 聽

That means the total i paid was 800 less than I would have done had I not taken finance聽 聽

That means I did not pay any interest on the financing

Example.聽 聽 聽 聽 聽 Price of car 14,000.
聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽Less 2,000 trade in
for taking financing less Net聽 800
聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽鈥斺�斺�斺��
聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽 聽TOTAL PAID 11,200

Then what is the point of financing while buying for cars?

Unity I am very sorry but i do not understand your post

For me there was no point to financing a used car. It sounds like Johncar found a way to make it work on a new car, but he's been here way longer than a newbie like me and certainly has contacts and experience that I don't. (I don't know where he managed to get two year financing with zero interest, though.)

I didn't investigate the specifics of a financing arrangement myself, so I can only repeat what the salesman told me. Still, his explanation sounded plausible and made my decision a lot easier. As a recently-arrived retiree, I wasn't sure anyone would give me decent financing anyway!

Everybody's situation is different, of course, so do your homework, know what you're looking for, ask a lot of questions, and bring an interpreter if you need to negotiate a deal in Spanish.

Doc.聽 聽

No mystery.聽 聽

I did find a deal.聽 聽I bought the car from the nearest Seat main agent聽 聽 I was intending to pay cash,聽 as I have always done when buying a vehicle

I did not know anyone connected with the agency so no special deal for me.聽 聽 Although I speak Spanish the person I dealt with was Irish, so we did the deal in english

I realise that the finance company pay a commission to the dealer.
My gripe is that the advertised price (as in but not restricted to the UK for example), should be the SALE price of the car.
Everyone knows that financing is expensive and the buyer pays pretty high interest rates on the loan!

I don't know about Spain, but usually in the US the agency selling the car starts at a price that gives them their ideal profit. A customer can offer less and included in the deal is the value of the trade-in. When I bought my last car, I looked at online discussions of the deals and online documentation of what the dealer pay for the vehicle, and had a pretty good idea of the minimum price I could expect. If I remember correctly, it was a few hundred dollars more than the person online that had gotten the best deal on the same model with the same accessories. Since most people in the US cannot afford to pay cash on a new purchase, the car dealer will next offer a deal on a loan, which is icing on the cake. Sometimes a dealer will not accept an offer, and you can always walk out and leave your phone number for them to call.

I used to work for a car sales company and the reason cash isn't king is that the Company you sign up to for credit, gives the car sales company a percentage of loan taken out.

JoJo1961 wrote:

I used to work for a car sales company and the reason cash isn't king is that the Company you sign up to for credit, gives the car sales company a percentage of loan taken out.

Jojo,聽 a very understandably comment but if you read my post, I paid ( in total) quite a lot less by taking finance than I would have done paying cash

That was something I could not understand.聽

The only possibility I saw was that maybe they hoped I would miss some payments over the two years of the loan and they could make money by penalising聽 me.聽

I鈥檇 appreciate your view on what I experienced

John

Hi.

We are now resident for just over a year. Everyone good, everything鈥檚 really good for expenses. Would not return to Scotland.

Alex.

What I should have explained was that the dealer gets paid from the credit company for any deals they sell. So they actually make money through the credit company if you take a loan. So the dealer is able to reduce the price of the vehicle to the customer and still get at least the same price. They then try and sell you the equivalent of PPI and make even more money. X
That's how it was when I worked for a dealership.

Or at least that鈥檚 what they make you think. Prices are always fluctuating with dealers based on their need for sales profit. One needs to do good research on market price and car features based on the same. 鈽猴笍

I am glad to hear that. Happy for you.
We are in a limbo with Brexit.
Want to sort out our residency before Brexit but don't have the required documents. I am hoping to register for self employment in teaching but not sure what is required and how long it takes
I have a teaching qualification in England.
Given the time left before October brexit, gaining employment may not be easy to meet the residency聽 application deadline.
Has anyone done this before?