If you are looking to buy a new car make sure the finance deal is not too expensive.

Joanne Linden learnt the hard way after she decided a Vauxhall Zafira was the car for her from an Edinburgh showroom.

The cost of the car was £7,000, well within her budget but she later found out that the complete finance and insurance deal would cost her £17,000.

The finance was arranged by Welcome Car Finance over four years at an interest rate of 29 per cent. In addition to the loan Mrs Linden was told that she would have to have Payment Protection Insurance (PPI) costing 28.4 per cent on top on the car’s value.

According to Mrs Linden the salesman made it clear that she couldn’t have the car if she didn’t buy the PPI, so she agreed. However the salesman didn’t talk through the full amount her agreement would cost her. As a result she is trying to negotiate a voluntary termination of the contract.

Mrs Linden has had the car for 20 months and Welcome Finance is looking for four years worth of PPI payments.

She said, 'We got handed all these forms, including the one for insurance. We said no, we didn't want it. But he said if you don't take it you don't get the car. He was very clear about that.'

Currently Mrs Linden’s monthly payments have been £350, out of which £238 pays off the loan, and £112 is just for the insurance.

To date she has paid £2,529 in insurance premiums and has been told that she won’t be allowed to terminate the agreement voluntarily unless she pays £2,044 more.

Mrs Linden added, 'As far as they're concerned I have to pay this amount. They're not going to help me out in any way.'

She tried to cancel the policy last year, but unless she could prove financial difficulties, it could not be cancelled.

She continued, 'I just thought insurance was insurance, but I've tried to cancel it several times and I can't.'

Mrs Linden has since been in touch with Trading Standards and the Financial Ombudsman to try to find a solution.

The only comment Welcome Financial Services would make is that the PPI was entered into voluntarily and that the company was regulated by the Financial Services Authority and complied with FSA regulations.