Drivers in the UK, who have set their hearts on purchasing a new '58' registration vehicles this September, will be wasting £168 million because they are not shopping around for loans, but rather choosing the garage's finance plans.

According to research from uswitch.com, half of all the new cars purchased will be done so with car finance loans, which have an average APR of 10.17 per cent. Unsecured loans have been found to have an APR of 7.4 per cent.

Simeon Linstead, head of personal finance at uSwitch.com said: "Shopping around for competitive loan before shopping around for the car is essential. Buying a brand new car is a big expense which can be seriously inflated if the financial arrangements are not researched thoroughly. Trusting consumers may think that purchasing a vehicle from a reputable dealer also means they will be offered the most competitive finance deal - but this is certainly not the case.

"Paying over the top for finance is one expense that can be easily avoided. This really is a case of 'act in haste, repent at leisure' as a loan from the dealer could cost the consumer as much as £1,000 extra in interest. Having the money available before choosing a new vehicle can also add to your bargaining power when on the forecourt - you may find you are able to drive down the cost of the car as you strike an immediate deal."