People buying new cars next month 'may lose £140m in interest'

22 August 2007
Those looking to buy a new vehicle with 57 licence plates next month could find themselves losing out if they choose the wrong finance deal, it has been claimed.

According to moneysupermarket.com, the 405,000 people estimated to be picking up the vehicles in September 2007 could find themselves £140 million in debt collectively.

This is because new car buyers spend a mean amount of £14,000 on a vehicle and a typical finance deal will see them pay 7.9 per cent APR - paying an extra £1,707 over a three-year period.

Although there are some deals to ease the strain on consumers, the cost of road tax and car insurance may see drivers put off.

"Many new car buyers received 12 months' free cover last year, which was a great perk. But one year on, you're likely to find yourself paying a hugely inflated premium," said Richard Mason, director of insurance at the firm.

A number of motorists may look to a personal loan in order to finance the purchase of a new car.

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