Cardiff, UK (PRWEB) October 16, 2010
New findings from Confused.com show that savvy shoppers could save up to £509* when buying a new registration car this autumn, simply by sorting out their finance before heading to the garage.
Figures from the Finance and Leasing Association** show that more than a quarter of a million new car buyers used dealer finance to fund their purchase in the first six months of 2010, equating to nearly half (49.4%) of new car purchases. The majority (57%) of this dealer finance was used for personal contract purchase (PCP), where customers pay a set monthly fee and at the end of the contract have a choice of whether to hand the car back, buy it outright or use any equity towards a deposit on another car.
Whilst the different car finance options can look like an attractive proposition to fund a new car purchase, they don't all lead to outright car ownership at the end of the term. For those whose aim is to fully buy the car, these deals might not be the most cost effective finance option, and it could pay to sort out a loan before heading to the local dealership.
Chris Griffiths, Head of Loans at Confused.com, said: "Customers should be certain to consider all finance options available before committing to dealer finance when it comes to purchasing a new car, as a personal loan may prove the cheaper option. Consumers should try to plan their purchase, giving themselves time in advance to review and research financing options, and should look to shop around.
"When looking for a personal loan a customer's existing bank is a good place for them to start as preferential rates may be available for existing customers, but they should still be compared against deals available online and elsewhere. Borrowers should be sure not to only use the headline APR to weigh up which option will be cheaper, but make sure the monthly repayment amount stacks up, that it is affordable and check the total cost for credit as set up fees may be applied.
"Lastly, consumers shouldn't totally discount other potential benefits when making a decision, for example dealer finance may include servicing costs or free car insurance while a personal loan provider may allow a payment holiday to be taken during the term of the loan."
For further information, please contact the confused.com press office:
Notes to editors
*Difference in total Cost of Credit over 3 years for borrowing £10,286 with VW Solutions 2010 Finance Plan vs. Tesco Loan
Confused.com is one of the UK's biggest and most popular price comparison services. Launched in 2002, it generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.
Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com's service is based on the most up-to-date information provided by UK suppliers and industry regulators.
Confused.com is owned by the Admiral Group plc. Admiral listed on the London Stock Exchange in September 2004. Confused.com is regulated by the FSA.