15 August 2006
Motorists could waste as much as £210 million on over-priced credit this autumn, according to new figures.
Research by uSwitch has found that choosing a low rate personal loan over a traditional car finance package could save motorists as much as £1,171.80 over a three-year period.
This is a considerable saving given that more than 179,000 new cars are likely to be purchased on car showroom finance this September.
Almost 2.5 million cars were sold in the UK last year with over 415,000 in September alone.
Nick White, head of personal finance at uSwitch.com, said: "I can't deny that looking for a new car is far more exciting than searching for the best finance package. Dull as this part of the process may seem, a rushed decision or just taking the finance deal offered by the car dealer could turn out to be long term financial burden. The average interest rate for car showroom finance deals is 11.3% APR – more than double the best rates that are currently available on the personal loans market.
"Paying too much for car finance is really easy to avoid. By organising the loan before visiting the car showroom, people will not feel pressurised to get the cash quickly to secure the car of their dreams. Motorists looking to buy a new car this year should first visit a price comparison website such as uSwitch.com to find the most competitive personal loan for their purchase. Some of the most competitive loan deals can be found on the internet, so it's really important to check out all the options available."
Make a personal loan comparison with uSwitch.com and find the personal loan best suited to your needs.
© 2008 Adfero Ltd
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