Financial experts have pointed out that for those wishing to take out a loan to pay for their car, or indeed, anything, the larger the loan you take, the better rates you get.

If you work out the money which you are saving by taking out a bigger loan and perhaps getting a better, faster and more efficient car, it could be more economically sensible to borrow more than you had originally planned.

There are so many costs and previously un-thought of complications involved with buying a car, especially if it is your very first car.

When you consider the costs of road tax, fuel and maintenance, it may not seem like such a bad idea to borrow more than you may have planned.

With larger loans coming with better rates and terms for repayment, it is a good idea to consider the option of borrowing more in order to save money.

Lets face it, none of the money you borrow is going to go to waste. Borrowing that bit extra could enable you to purchase a more efficient car, which will in the long run save you money on fuel.

It could go towards purchasing a tax disk for your car, or extra safety and security items such as a vehicle lock or improved alarm system, which will in turn lower the price of your insurance premiums.

Crucially, borrowing a higher amount and using wisely, while sticking to the repayment plan, will make your car purchase easy and, most importantly, will save you money.