Nationwide currently boasts the cheapest loan on the market, the building society claims, which is ideal for those who want to take advantage of the new car registration that came out this month and upgrade their motor.
Whether people are trading in their old banger using the scrappage scheme, or just upgrading to the latest model, Nationwide urges potential car shoppers that it is not only important to shop around for the right car for their circumstances, but for the right car loan too.
As the recession continues to squeeze many household budgets, it's more important than ever to get the best loan deal possible, and Nationwide FlexAccount customers could benefit from a typical Nationwide loan rate of 7.7 per cent, the lowest on the market according to the lender, beating all the high street banks and supermarkets.
While the finance deals offered by car dealers on the forecourt might look appealing at the time, especially if they are offering zero per cent loans, Nationwide cautions car buyers of getting lured in by attractive rates that could end after a year and then shoot up to a much higher rate which could make the loan more costly in the long run.
A personal loan could be one of the cheapest ways to finance a new car, Nationwide suggests, but encourages customers to calculate the total cost of borrowing over the life of the loan, and to stretch themselves by borrowing more than they can afford.
Chris Rhodes, group product and marketing director, said: "Whether you are buying a brand new Audi TT or a second hand Renault Megane you’ll want to get a good deal on the car, and a good deal on the loan you take out to pay for it. So it pays to shop around not just in the showrooms, but also to find the best personal loan rates.
"I’m delighted that for Nationwide current account customers we’ve taken the pain out of shopping around, by making sure we offer them the best deal around. This is just the first of many offers we’ll be providing to Nationwide current account customers over the coming months."
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