Loans - Car finance advice issued by website - 20/02/2008

Motorists hoping to buy a new 08 plate car this year should think carefully about how they are going to finance their purchase, advice website Moneyfacts.co.uk said yesterday.

In fact, Moneyfacts.co.uk analyst Michelle Slade suggested that budgeting decisions - such as the type of car loan to be taken out by the motorist - should take the same amount of time as deciding on the make and model itself does.

Figures from the site suggest that the financial cost difference between the cheapest and most expensive loan on the market for a car costing £15,000 is as much as £3,000.

This can rise to over £7,000 when expensive (and optional) payment protection insurance is added in.

"It may seem easier to opt for the forecourt finance that's offered at the garage, but checking out what's on offer on the rest of the market could see you making significant savings," Ms Slade advised.

"Don't be swayed by incentive gimmicks such as free breakdown cover - usually these loans are much less competitive and the saving you make will more than pay for separate cover elsewhere."

She added: " Car insurance providers target certain types of customers - if you were to phone around for quotes, not only would you be wasting a large amount of time, you might not necessarily call the provider that could offer you the best deal."
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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPATMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
MISSING PAYMENTS WILL HAVE SEVERE CONSEQUENCES AND MAY MAKE OBTAINING CREDIT MORE DIFFICULT IN THE FUTURE.


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