Personal Loans Could Save Drivers Thousands On New Car

Written by Editorial Team

23 February 2005

New research by the website moneysupermarket.com has revealed that consumers could be wasting more than six billion pounds by accepting car finance deals from the showroom – and could save thousands by financing their new car with a personal loan.

The website compared a selection of current car finance deals available through the car showroom with the best personal loans available, and found a driver could pay £2377 more for a Ford Mondeo through the Ford finance deal than with a personal loan.

If all those who bought a new car in 2004- 2,567,269 people according to the Society of Motor Manufacturers and Traders- were to use the showroom car finance deal, they could potentially waste a collective £6.1 billion, the research claims.

“Our research shows that accepting the deal offered in car showrooms could be costing motorists a lot of money,” explains Richard Mason, director of personal loans at moneysupermarket.com.

He adds: “Despite interest rates going up over the last year, there are still many low rate loans available at less than 7% APR.”

The research reveals that consumers should look around for the best deal on a personal loan before committing themselves to a showroom finance deal which could cost them dearly.

To compare the best personal loan deals, click here.