Forecourt finance offers could cost hundreds

07 August 2003
Consumers are tempted by the apparent ease of finance offers in car showrooms, according to Intelligent Finance.

However, the internet bank warns that car buyers should be careful, as opting for forecourt finance could add up to 15 per cent of the original on the road cost price of the car.

IF points out that there are plenty of providers that can give instant approval in principle on a loan over the phone or internet ensuring that consumers know they have the finance ready to purchase the car they want.

And, IF also advises that an offset loan provides the possibility of paying no interest until you buy your car.

Grenville Turner, Intelligent Finance's Chief Executive commented: "People should be wary of the costs of forecourt finance and shop around before accepting such offers."

Despite the fact many forecourt finance deals are not as competitive as those available in the wider market, in response to ICM Research for Intelligent Finance over a million people suggested they would be most likely to turn to a car dealer when they needed a loan. IF claims that they could be losing out hundreds of pounds as a result.