30 August 2005
Motorists could be losing £18,000 over a lifetime by opting for finance from car dealers over shopping around, claims new research.
As the new '55' number plates come in on September 1st, Alliance & Leicester has found that while 71 per cent of motorists believe value for money is important when looking for a car 40 per cent of people fail to shop around for the best deal on a motor loan.
Andy Bayes, head of personal loans at Alliance & Leicester said: "Despite the fact that so many motorists appreciate the importance of value for money when it comes to buying a car, millions of them do not practice this when it comes to financing their motor.
"It may seem easy to take the finance that is being offered at the car showroom, but compared to a low-rate personal loan, it can cost a small fortune."
It was found almost 5.5 million motorists opt for car showroom finance to pay for their car, even though the average APR charged by car dealers is 13.3 per cent, while personal loan with Alliance & Leicester is at 6.4 per cent.
People who are already tied to a finance deal with a showroom are also being urged to consider switching their debt.
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