Nice Loans.co.uk > News > Car Buyers urged to find better Loans

September registration spotlight on finance

By accepting the finance deals offered by car dealers, many purchasers could be wasting money when they buy a new car.

Several reports in the press recently have highlighted the fact that many car buyers are signing up for poor finance deals when they take on the finance offered by car retailers. It has been well reported that car dealers make as much, if not more, profit from selling finance as they do from selling the vehicles themselves and with the new September registration just around the corner, several finance firms have turned the spotlight on the poor terms offered by garages.

uSwitch reported earlier this month that the average motorist could be losing as much as a thousand pounds if they fail to look carefully at their finance arrangements and don't shop around for the cheapest loan.

With 2.3 million new vehicles being registered annually at present the numbers soon start to stack up and young male purchasers make up the majority of buyers.

With car finance however it's not always easy to see what the true cost of finance is. Although the dealers are duty bound by legislation to declare interest rates etc, they often muddy the water by mixing up the offer with price discounts and added extras. So it's not always easy to see what is being offered. The simplist route to clarity is to for buyers to find a cheap loan deal and make provisional arrangements before they visit the car dealer, therefore putting them in a stronger position to see the real cost of the purchase and negotiate the best deal.

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