Precious metals

Shiny facts about car finance

Car Metallic Finish

It’s received wisdom that metallic finishes on cars will make them more expensive. A metallic paint job will add at least £250 to the price of a new vehicle - and pearlescent paintwork costs even more. Adding tiny flakes of powdered metal to the paint makes it pricier - and generally more layers of both paint and lacquer are required to give the vehicle a perfect finish.

The increased price is certainly true if you buy your car with cash. But what about if you’re using a finance package? Compare a solid paint version - your standard white, black, blue or red car - with the luxury metallic finish, and you might be in for a surprise. Your monthly repayments can actually be lower.

This is because when monthly payments are calculated, they are based on paying the difference between the new car and the residual value of the car when you hand it back to the dealer (or pay a final payment to keep it).

Vehicles with metallic finishes tend to hold their value better. The second hand value of a car with a metallic lustre finish at three years old is higher than that of an identical solid coloured car. So the difference between the new and used value is smaller - and so are your repayments.


by James Cartwright at 13 Jun 2017, 00:00 AM