Wrong car loan can be a "costly mistake"
29.08.2008
Consumers are being urged to dedicate more time to choosing the right car loan or finance package ahead of the launch of the new 58 plates.
Moneyfacts.co.uk has warned that choosing the wrong method of financing a purchase can be a "costly mistake".
According to the firm, there are now more than 40 providers offering unsecured loans and the difference between the best and worst deals on a £5,000 loan can be £769.
For a £10,000 loan, this figure rises to £2,400, the company noted.
"Before opting for the convenience of forecourt finance, it's worth checking out how this compares with other deals on the market," it advised.
When purchasing a new car, buyers ought to consider how quickly their car's value may depreciate and take out a loan with a reasonable term, Moneyfacts.co.uk added.
The Finance and Leasing Association recently reported that in the 12 months to June this year, half of all new cars were bought using dealer finance, compared with 46.2 per cent a year earlier.
Moneyfacts.co.uk has warned that choosing the wrong method of financing a purchase can be a "costly mistake".
According to the firm, there are now more than 40 providers offering unsecured loans and the difference between the best and worst deals on a £5,000 loan can be £769.
For a £10,000 loan, this figure rises to £2,400, the company noted.
"Before opting for the convenience of forecourt finance, it's worth checking out how this compares with other deals on the market," it advised.
When purchasing a new car, buyers ought to consider how quickly their car's value may depreciate and take out a loan with a reasonable term, Moneyfacts.co.uk added.
The Finance and Leasing Association recently reported that in the 12 months to June this year, half of all new cars were bought using dealer finance, compared with 46.2 per cent a year earlier.