21 November 2006
This week is National Consumer Week and consumer groups and organisations are trying to raise awareness on a whole list of issues, from teaching consumers about their rights, to making sure they are not falling victims to con-artists and fraudsters.
As part of the initiative, the Trading Standards Institute (TSI) has issued a warning to young drivers to be careful when they take out a car loan. According to its research, many have fallen victim to high APR rates which have plunged them into large amounts of debt.
Peter Stratton, TSI's lead officer on the motor industry, warned motorists that "all dealers want to secure the best profit they can on each car. Selling extras on credit, including insurances, warranties, breakdown and roadside assistance, is a lucrative sideline".
Mr Stratton continued, stating that many of the loan providers were offering "unfavourable" interest rates and charging even more for unnecessary 'extras'.
"We are hearing from many motorists who are pretty shocked when they read through their agreements later and realise exactly how much they will have to pay back," he said.
"It is vital that all buyers, particularly young motorists, think long and hard before signing any type of credit agreement. Don't expect the dealer to look after your interests, it's up to you to look after yourself," Mr Stratton urged.
Make sure you know exactly what you're getting when you take out a personal loan. uSwitch.com will search all available providers and find the personal loan that works best for your circumstances. If you're new to borrowing money we have a range of articles on personal loans to help you and can offer help and advice every step of your comparison. Find a personal loan today.
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