At least 5.5 million British motorists are being ripped off over their car finance deal by opting for car showroom finance, Alliance & Leicester Personal Loans has revealed.
According to the lender, those motorists who choose the double-digit interest rates set by car showrooms are wasting more than £18,000 over their lifetime.
Research by Alliance & Leicester Personal Loans revealed that the average showroom finance deal costs £1,700 more over four years than a low-rate personal loan – adding up to a staggering £18,791 for the average motorist who buys 11 cars during their lifetime.
Andy Bayes, head of personal loans at Alliance & Leicester, explained: "Despite the fact that so many motorists appreciate the importance of value for money when it come to buying a car, millions of them do not practice this when it comes to financing their motor.
"It may seem easy to take the finance that is being offered at the car showroom, but compared to a low-rate personal loan, it can cost a small fortune."
Motorists need to wise up to the showroom finance rip-off, the lender found – more than half (52 per cent) of the drivers questioned said they believed a car showroom deal offered the best value for money.To read more about car loans, click here.
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