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This article is for information only. It does not constitute advice. Chase Saunders Ltd does not provide services for savings, investments, mortgages or insurance. You should seek advice on these areas from a qualified financial advisor.
Motorists not driving hard bargain
Article Category: Debt Management Help and AdviceMotorists are throwing money away and stacking up unnecessary debt by not driving a hard enough bargain when financing a car purchase.
That is the conclusion reached by price comparison website uSwitch.com, after a study found that drivers not choosing a low rate personal loan over a traditional car finance deal are collectively wasting a total of £174 million a year.
One example cited by uSwitch.com shows a motorist borrowing £10,270 towards the cost of a VW Golf costing £11,411.
A finance deal with Carselect at an interest rate of 9.4 per cent APR would equate to £2,162 in interest over three years.
However, a personal
loan with Moneyback Bank would have an APR of 6.7 per cent - total interest £1,068.
This works out at £1,094 being unnecessarily paid in interest over the course of the loan.
Mike Naylor, from uSwitch.com, said: "Finding a competitive loan and having the money ready to buy the car immediately will not only ensure that people get cheaper finance but it also gives them more bargaining power to get the best purchase price."
As always, the message is to shop around for the best deals.
For more information about debt management call our advisors on 08000 122 118 for FREE, no obliation help and advice. Created on 13/02/2008 12:48:30
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