Motorists advised not to rush into car finance deals
Published On 15 April 2007
Motorists should not let the desire to purchase a new motor force them to make poor choices when it come to car finance deals, according to an industry expert.The consumer website Moneyextra said that many people spend a long time deciding which car is right for their needs, but little time planning what sort of car finance deal will best suit their interests.
This leads to many people blindly accepting the hire purchase (HP) deal offered by many dealerships. While these deals do have the benefit of being convenient, Moneyextra says that the high rates of interest charged mean that consumers should think about looking elsewhere.
Personal contract purchases are an option, but they require people to carefully manage their money in order to cover the large 'balloon payment' at the end of a specified term.
In Moneyextra's opinion, many people could benefit from financing their car purchase with a personal loan. Lower interest rates make the finance attractive and consumers can often get better deals as they are classed by dealers as cash buyers.
"Drivers should not let the smell of a new leather interior lure them into poor financial decisions at the last hurdle," explained Robin Amlot, the senior editor at Moneyextra.
"By taking the time to arrange finance before visiting the forecourt, motorists can be sure that they will enjoy every mile in their new car and be certain that they are getting more metal for their money."
