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To be realistic you have to take the cost of the finance, for the term of the loan, from the agreed purchase price.
This sounds a brilliant ploy. Would love to know if the plan succeeds! I can't think why it shouldn't work but of course it all depends on what's in the small print, it may say that if the agreement is ended early the £500 contribution has to be paid back as well as the balance of the loan. Let's hope not.
Indeed, but worst case scenario it costs a couple of hundred pounds in interest so I'm still up. I believe the dealer gets a bung for selling the finance and doesn't care what happens afterwards but I will have a magnifying glass out for the small print before anything is signed.