Bad car loans could cost buyers £4,000
10.08.2010 - Stuart Milne
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New research has found choosing the wrong car loan could cost buyers more than £4,000. The study by Money Expert found the average price of Britain's top 10 best-selling cars is £13,631, and a competitive car finance deal will leave the buyer paying £16,474.
However, choosing the wrong car deal could leave the car buyer with a £20,518 bill - £4,044 more.
While it is important to haggle with the seller to get the best price, there are more substantial savings to be had, simply by finding the best car finance deal.
Top tips for getting the best finance deal:
• Take the size of your deposit into account, as this will affect the monthly payments and how much is repaid in total.
• There are good deals for unsecured personal loan rates so it's worth researching deals, however these are usually only available to those with a good credit history.
• Leasing a car is a good option for those with a bad credit score.
• Cars pre-registered by dealers allow buyers the opportunity to own a new car for the price of a used one, reducing the amount needing to be financed.
• Buyers are familiar with haggling on the price of a car, but dealers have some flexibility with the finance deals they can offer, so push them hard to save money.
