Consider dealer finance carefully
If you’re considering to a buy a new car over the coming months, it might be a good idea to have your finances in place before you visit your preferred dealership or risk being sold a vastly expensive finance agreement as part of the deal.
Recent market data has revealed that British car buyers spend massively over the odds by agreeing to finance through their dealership, rather than sourcing a package themselves. Accordingly, the average “dealers own” finance package is likely to carry an annual percentage rate almost 5 per cent higher that a competitively priced unsecured loan. This lack of understanding and/or desire to shop around is said to cost the average British car shopper a whopping £170 million collectively, over the course of a year.
In addition, experts have also suggested that UK car buyers could stand to save around £1100.00 by opting to take the personal loan root over a finance agreement, which could equate to a saving of almost 20% off the actual car value.
Consumers should also be aware that by having the finance in place before you shop for a car not only gives you a monetary advantage, but also greater scope to bargain with the dealer. The moral of the story is that the most convenient scenario is rarely the best, especially when it involves your personal finances.
