Select finance as carefully as your motor

Tuesday, August 23, 2005

British drivers are risking losing a fortune over the course of their lifetime simply by not investigating thoroughly the best value for money finance deals when purchasing a new car.

A survey carried out by Alliance & Leicester personal loans ahead of the launch of the new car registration plate on 1 September revealed that 71 per cent of Brits consider value for money the most important factor when choosing a car.

Despite this, just 40 per cent bother to shop around for the best value way of financing the purchase.

The research revealed that 5.5 million Brits choose showroom finance to pay for their car, which could result in paying £1,700 more over four years than a low rate personal loan.

Head of personal loans at Alliance & Leicester, Andy Bayes, said: "It may seem easy to take the finance that is being offered at the car showroom, but compared to a low-rate personal loan, it can cost a small fortune.

"I urge anyone considering buying a car this autumn to look around for their car finance first, and base their decision on the rate being offered, not just the freebies and discounts on offer from the car showroom."