13 February 2007
The price comparison and switching website uSwitch.com is urging consumers to consider their options carefully when looking into buying a car.
Its research reveals that car finance loans could cost buyers £1,200 more on average in interest repayments, compared to a low-rate personal loan, with most consumers being drawn in by tempting deals at car showrooms.
Currently offering the most competitive low-rate personal loan is the MoneyBack Bank, which offers a competitive rate of 5.9% APR.
Nick White, Director of Financial Services at price comparison and switching website uSwitch.com, commented that a quick-fix, flashy deal offered by the car salesman could end up costing the consumer in the long run.
"The average interest rate for a car showroom finance deal is 10.12% APR which is 4.22% APR higher than the best loan rates available and nearly double the current Bank of England base rate," he said.
Mr White went on to suggest that consumers should take out the loan before visiting the showroom to take the anxiety out of buying a car.
"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," he added.
Sometimes a personal loan is a good choice, perhaps you want to consolidate your credit cards or buy a new car. Whatever your needs, let uSwitch.com help you find one to suit. We're impartial and comprehensive and won't charge you for using our service. Compare personal loans and apply online.
© 2008 Adfero Ltd
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