Yes, this is something many (with enough cash to buy a car outright) have been doing for many years, to take advantage of the large deposit contributions offered by manufacturers. I read a two-page "consumer report" in this week's Auto Express with bemusement, as the practice of paying off the loan immediately was described as "a new trick being used by car buyers to get huge savings on their purchases". A new trick? My God, where have these AE journalists been for the last 10 years?
There is even a line that "Incredibly, Auto Express has even heard stories of dealers promoting the practice". Not too surprising given that the dealers get a kick back for signing folk up to finance deals, but evidently suffer no penalty if the customer cancels the loan within a few weeks. The car finance companies may not like it, but there is very little that they can do about it.
I thought a car journalist would have his or her "finger on the pulse" of auto trade practices. Apparently not.
