Consumer group issues car finance tips
People should take financial care when purchasing a new 2007 registered car, a consumer finance company has claimed.
While hire purchase is the most popular purchase method, Moneyextra.com has stated that average APR payments are in the double digits. Furthermore, the car is not actually owned by the driver until the final instalment has been paid.
A personal contract purchase sees motorists pay for a portion of the car over a certain amount of time - with the option to buy, trade or return. While these offers generally offer lower APR, the organisation has suggested there is a better option available.
"By taking the time to arrange finance before visiting the forecourt, motorists can be sure that they will enjoy every mile in their new car and be certain that they are getting more metal for their money," said Robin Amlot, senior editor at Moneyextra.com.
Similar research from Alliance & Leicester found that a personal loan may also be a driver's best choice when it comes to financing a new vehicle.
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