Consumers hoping for a cheaper car loan are quickly finding that they are in short supply. Many car loan banks are now offering very high fees, and it is getting harder than ever to get a low rate on a brand new car loan.
Michelle Slade, analyst at Moneyfacts.co.uk, comments: “At the start of next week the new 58 plates will be rolling off the forecourts and motorists would of likely searched hard to find the best deal. However, I suspect much less time and effort is put into finding the best finance deal. Getting the finance choice wrong could prove a costly mistake.
“Before opting for the convenience of forecourt finance, it’s worth checking out how this compares with other deals on the market. There are over 40 providers offering a range of unsecured loans and many offer different rates depending on if you apply online or over the telephone.
“Latest Moneyfacts.co.uk research has shown that, on a £5K loan, the difference between choosing the best and worst loan deal could cost you an extra £769, while the wrong choice on a £10K loan could see you out of pocket by more than £2.4K - or to put it another way, increases the cost of financing your car by a massive 14%.”
Tags: adverse, credit, loan, mortgage, self, cert, council, car, home, improvement, holiday, remortgage, tracker, fixed, rate, mortgages tracker, rate, holiday, fixed, mortgages, loan, improvement, mortgage, home, remortgage
Related reading: Car Loan
Comment on this article