I am going to buy a new car in the near future and have been advised by the dealership that I should take out a PCP in order to take advantage of a £1000 manufacturer deposit contribution and a cut price service deal, saving around £1250 in total.

They said I could pay as little as 3 payments and then settle the PCP. They also told me it would only cost two months interest penalty plus the interest paid. If I put down a large deposit (30-40%) obviously the interest would be much less (and the penalty). Should I take this option, or should I push for a bigger discount as I am able to buy with cash and have the cash available?