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How to get the cheapest car loans
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In a matter of days the new 2007 number plates will be released, but Britons could end up paying well over the odds by taking out dealer finance rather than cheap car loans.
But while motorists scour dealerships and the internet to get the cheapest deals and the most included extras on their favoured models, many are ignoring more obvious ways of saving cash.
By opting for a cheap car loan over forecourt finance Brits can save more than £1,000.
"The market for personal loan business is incredibly competitive, allowing consumers to reap the benefits by means of lower rates," explained Michelle Slade, of comparison site Moneyfacts.co.uk.
"Although sub six per cent loans have become almost extinct, there are still some great deals to be found, charging around six to seven per cent, which is still only a 1.75 per cent margin over bank base rate, and is fixed for the duration of the loan."
And on a five-year loan of £10,000 a ten per cent loan is more than £1,000 more expensive than a six per cent loan.
"So with a little time spent to secure the best finance deal, you could have paid for the extra upgrades such as a climate pack or spoiler," Ms Slade said.
However, she also issued a warning.
"Around 85 per cent of loans use typical pricing, so bear in mind that the rate advertised may not be the actual rate you pay, this will be determined by your credit rating," Ms Slade said.
"Secondly, should you choose to take optional payment protection, the costs will vary significantly between lenders."
Source:: http://www.myfinances.co.uk/
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