When looking to buy a new car, it is now even more important to compare the credit terms being offered by dealers. With new car registrations continuing to rise – up by 13.5 per cent in May, the eleventh successive monthly rise – there are many good offers about for both car financing and insurance . There was also an increase reported in the fleet and private markets, up by 16.0 per cent and 12.3 per cent respectively.

With the end of the government’s car scrappage scheme, many manufacturers are trying to woo owners of cars to trade them in for a new model. However, it is important to check the APR offered by a car dealer with loan rates you could get elsewhere, as the amount of money that could be saved is significant. Choosing a personal loan instead of a car financing package from a dealership could save you thousands.

Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said May was another good month for the UK new car market, although we expect the coming months to be extremely challenging. It is essential that the upcoming emergency budget promotes consumer and business confidence to maintain economic recovery.

A new report by Sainsburys has also revealed that the estimated cost of running a car is now 20 per cent higher than it was in 2007, making it even more important to consider the best deal available for car financing, with online research about credit and insurance an effective and cheap way to save yourself money.