Rushed car loan choice can be costly
February 13, 2007 by admin
Filed under News, News-Loans
Motorists have been warned that making the wrong choice in regard to their car credit could leave them at a significant financial disadvantage.
A study by price comparison site uSwitch.com has revealed that around 187,000 of the cars sold in March will be purchased with the help of showroom finance.
Such practices will result in around £228 million being wasted on charges for the year, the company states, explaining that the average showroom loan offers 10.12 per cent APR, a staggering 4.22 per cent higher than the best regular loan on the market.
“A rushed decision or just taking the finance deal offered by the car dealer could turn out to be a long term financial burden,” explained Nick White, the director of financial services at uSwitch.com.
“Paying too much for car finance is really easy to avoid,” he added, before suggesting that a comparison website might be a good place to start.
Opting for the best loan available could save a motorist around £1,200 over the loan’s term when compared with showroom finance, the company said.
