Consumers should watch the pennies on car finance
Published On 13 February 2007
Consumers should be savvy when it comes to hunting down a car finance deal and make sure they do not risk paying over the odds. Research by MoneySupermarket has found that new car purchasers could save themselves in the region of £1,400 by selecting the lowest rate loan.
The report estimates that car-hungry customers may be collectively paying as much as £800 million over the odds in their eagerness to land a new pair of wheels.
This is calculated due to the number of 12 months free insurance deals that will be curtailed with the onset of the new 2007 number plates imminent.
One example where savings could be made is in the purchase of a Ford Mondeo. A customer buying one costing £14,575.49 through a Ford finance deal at 12.5 per cent APR would repay £19,003.49 over three years while the same purchase with an Alliance & Leicester personal loan would see a £1,472.70 saving.
Richard Mason, MoneySupermarket spokesman, said: "Our research reveals only three per cent of people have bought a new car online and therefore a massive 97 per cent are missing out on the savings to be made.
"Whilst people are willing to buy expensive goods such as flat screen TVs online, often having identified what they want in the showroom, they are more reluctant to buy a car in the same way.
"Instead, drivers prefer to deal face to face and test drive before they commit to purchasing. However, the chance to knock nearly a quarter off the list price just by buying your new car online should make far more motorists sit up and take notice of this opportunity."
Nissan said today it would release a new European car model at the Geneva Motor Show on March 6th.
