A recent Guardian article posed the question:
is
car finance a waste of time? The newspaper asked two
vehicle finance industry experts whether they thought taking
out
car
finance was a waste of time or a sensible idea.
The experts were drawn from opposite ends of the pool. The first,
the chief executive of gocompare.com, Hayley Parson, made it clear
that car finance was a waste of time. She argued that
new cars had little extra value beyond the new smell, and that
car finance interest rates were usually more expensive than
personal loans through independent
lenders . Parsons also cautioned against competitive flat
rates, and advised consumers to organise finance first.
The Head of
motor finance at the FLA (Finance and Leasing Association) was
also asked for his opinion. Paul Harrison made it clear that
finance from dealerships is not a waste of time, and was still used
by 53% of
new car buyers last year. He cautioned that lack of
credit was common amongst lenders, and that an array of
car finance deals can be tailored to the consumer. He concluded
by saying that there has never been a better chance to
purchase a car using finance .
