Buyers urged to search for cheap car finance

Tue, 23 Aug 2005



New car buyers have been warned that showroom car finance deals are not always the best option.

The advice from Bradford & Bingley comes as September 1st's new 55-plate launch draws near.

The building society is urging consumers to shop around before signing up to a car finance loan even when the dealers offer is the easiest and most convenient.

According to B&B people should ideally put as much time into finding the perfect new car loan as they do selecting their next vehicle.

Head of personal lending at Bradford & Bingley, Mike Senior, explained "Although it may seem the speediest option to take out finance offered by the dealership, you could be leaving the forecourt seriously out of pocket.

"With the best personal loan rates below six per cent, it really does pay to hit the brakes and take your time researching your finance options carefully, ensuring that you get the cheapest deal available," he continued.

According to the building society some car dealerships require deposits of up to 40 per cent and APRs, which run to 14 per cent.

As a result many customers may find that a car loan or personal loan may be cheaper for them.

"Failure to shop around or getting a broker to do the shopping for you could leave a big dent in your finances," concluded Mr Senior.


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