Using a personal loan rather than a car finance deal 'could save consumers money'
Published On 13 February 2008
A new study has warned that consumers could be set to waste considerable sums of money in March by opting for uncompetitive car finance deals.Website uSwitch.com revealed that almost a fifth of all the new cars purchased in 2007 were bought in March last year and that consumers are set to purchase 224,644 new motors in the month this year.
However, the consumer site has calculated that people will collectively waste almost £174 million by agreeing to expensive car finance deals.
It pointed out that the average car finance loan charges 9.88 per cent APR - over three per cent more than the best unsecured loan deals available currently.
"Brand new cars are already a big expense but consumers can unwittingly inflate the purchase price by up to £1,100 by choosing the wrong finance deal," explained Mike Naylor, personal finance at uSwitch.com.
"However, there is a simple win-win solution. Finding a competitive loan and having the money ready to buy the car immediately will not only ensure that people get cheaper finance but it also gives them more bargaining power to get the best purchase price."
