Home - Finance - LoansBrits Advised To Approach Car Buying 'With Caution'Those looking to buy a new car next month are being advised to plan their purchasing wisely. Those looking to buy a new car next month are being advised to plan their purchasing wisely. Related Writings: How An Unsecured Loan Can Help You - Many people in the UK are finding it more and more difficult struggle against rising prices and bills that just keep going up. Some people struggle to make the normal, monthly bills for basic things like electricity and gas and food. In figures released earlier this week by uSwitch, thousands of motorists who are to buy a 57 registration vehicle from September 1st are set to waste millions of pounds by opting for uncompetitive forecourt finance deals. As a result of choosing such an option, above taking out a low-rate personal loan, Britons could be unnecessarily spending 985 pounds each in interest payments. Overall, consumers were revealed as losing out to the tune of more than 175 million pounds. Findings from the firm also showed that 2.3 million cars were sold across Britain over the course of last year, with 413,991 being bought during September and a similar figure expected to be sold next month. Related Writings: Payday Loan Personal Loan - Which One? - When you are in a position where you need money quickly, you will often find yourself deciding between a payday loan and a personal loan. When it comes to figuring out which option you want to go with, there are quite a few things to keep in mind. A driver taking out just under 7,000 pounds to purchase a Ford Fiesta 1.4 diesel was indicated as being charged an average 12 per cent in annual interest via a showroom finance deal offered by Perrys, paying back 2,282 pounds 20p over five years. However, by choosing the same model but plumping for a cheap personal loan the financial services firm revealed consumers may only face interest set at 6.3 per cent, with 1,150 pounds the total interest payable. This in turn could save them some 1,132 pounds 20p. Meanwhile, those looking to buy a Renault Megane could be 1,027 pounds better off by financing their funding decisions wisely. Savings of 1,076 pounds were said to be available on a five-door Ford Focus if more competitive spending options were pursed by British borrowers. Related Writings: Can A 125% Home Equity Loan Really Help You? - Recent years have seen a real increase in the type of credit cards available. So much so, that now you really have to look and see what is available, and it can actually be a little hard to choose between them. Mike Naylor, personal finance expert for uSwitch, said: "Finance deals offered by car dealerships can be expensive, and unwitting motorists could end up paying as much as 1,131 pounds extra for their dream car. However, there is a simple win-win solution. Finding a competitive loan could save consumers almost 15 per cent off the price of a new car (through the savings made on interest repayments), additionally, having the money ready to buy the car will also give them more bargaining power to get the best purchase price". Related Writings: If I Don't Pay My Doctor Bills, Will It Hurt My Credit Score? - When hard times come, you may have to decide which bills to pay, or not to pay. "Just because a car dealer can offer you the best deal on a new car, it doesn't mean that they will offer you the best deal to finance it. The message couldn't be simpler - don't pay more for the finance on your new car than you have to." Consequently he advised those considering buying a vehicle next month to make use of a price comparison website to find the most competitive deals possible. Related Writings: Over-extended Credit: Can you Still Qualify for a Cosmetic Surgery Loan? - Just because a person has a few negative marks on their credit report doesn't mean they have to settle for what interest rate comes their way. In the end, they not only look great, but they are also improving their financial future. Earlier this year, uSwitch suggested that those 400,000 Britons who purchased a '07' registration model in March have lost out on 228 million pounds by opting for expensive finance options instead of low-rate borrowing. As a result, Nick White, director of financial services for the price comparison website, stated those who let the thought of a shiny new car sway them into choosing a showroom deal out of plain convenience could find themselves under an unmanageable "burden" of debt. Related Writings: Consumers Face 'Unbearable' Debt Problems - A number of Britons report that their debt problems are causing them difficulties in other areas of their life, according to a new study. "Not only is a personal loan cheaper, by organising the loan before visiting the car showroom, people will not feel pressured to get the cash quickly to secure the car of their dreams," he claimed. Mr White also reported that opting for a finance forecourt borrowing plan could see consumers pay interest at some 4.22 per cent above the most competitively-priced personal loan deals available on the market and twice the rate set by the Bank of England's monetary policy committee. His comments were echoed by Steven Baillie, loans manager of Sainsbury's Bank. Although statistics from the financial services provider showed that personal loans are set to make up 15.8 per cent of all car purchasing over the coming months he claimed that Britons could still be losing out on millions of pounds. About the author: Abbi Rouse writes for AllAboutLoans.co.uk, an online loans comparison site, visit us today for information on all loan topics including cheap loans applications and online loans sourcing from all leading UK providers. Our Site: http://news.allaboutloans.co.uk/ Home - Finance - Loans |