Drivers urged to think about loans
Motorists were today advised to think carefully about to how to finance their next car purchase.
The recommendation came from Samantha Owens, head of personal finance at Moneyfacts.co.uk, as thousands of drivers gear up to buy a new 57 plate vehicle when they arrive in the showrooms next month.
Ms Owens said forecourt finance is often more expensive than a personal loan, but that even after buyers have decided that a loan is the best option the selection process can be complicated.
There are more than 50 providers offering unsecured loans with a wide range of interest rates and terms, meaning that failing to identify the right deal could be a costly mistake.
"The wrong choice on a £10,000 loan could see you out of pocket by more than £2,600 - or to put it another way, increases the cost of financing your car by a massive 26 per cent," explained Ms Owens.
Price comparison website uSwitch.com recently estimated that car buyers will waste £175 million in September by funding their purchases with forecourt finance deals rather than personal loans.
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