All car dealers (not just Skoda) work in terms of flat rate. Maybe it's to confuse you, maybe it's so it's easier for them to work out monthly payments while sitting at their desks, I don't know.

The easiest way to avoid being conned is simply to compare the monthly payments he's giving you to an on-line finance quote for the same amount borrowed.

I was dicussing a deal on an Octavia vRS the other day (didn't buy it as he couldn't get anywhere near the rediculously low price that I wanted it for:P ) and the dealer said that they have a bit more lee-way with regards to discounts if you take their finance (presumably as they get bonuses for selling it too).

As for discount, we got

Cheers for the detailed replies.

I know what apr is as I've done plenty of research trying to source my own finance deals, so I know what is and isn't a good price per month etc.

I made it clear that I have guranteed finance at 6.9% and would therefore probably not be interested in skoda finance. The dealer's response was that he could go as low as 4.5% on an apr and something higher on a pcp.

He also said that they could ploay with the rates depending on the amount of desposit etc.

I still don't really understand the aer business though, from my research it appears more relevant to mortgages and savings accounts. A bit worrying seeing as I got a mortgage only six months ago :P