A loan 'could be better than forecourt finance'

By Sarah Engle, Fri 29 Aug 2008 - Published in Loans

When buying a new car, a loan could be a better bet than forecourt finance, according to Moneyfacts.

Michelle Slade from the group warned: "Getting the finance choice wrong could prove a costly mistake."

She stated it makes sense to compare as much of the market as possible, pointing out there are over 40 providers offering a variety of unsecured loans and many different rates depending on whether you apply online or over the telephone.

Research by Moneyfacts has found on a Ł5,000 loan, the difference between the best and worst deals available could add up to Ł769.

On a Ł10,000 loan that goes up to Ł2,400.

Ms Slade advises people in the market for a loan to use the total repayment figure to compare deals.

She claims this is particularly important when including providers insurance, as the benefits of a competitive interest rate can be wiped out by expensive payment protection cover.

Elsewhere, uSwitch has advised people looking to take out a loan to do it sooner rather than later while there are still good deals to be had.

News Categories

News Archive

News: A loan 'could be better than forecourt finance'