Money News
12th August 2008
Car buying 'cheaper with personal loans'
Car buyers can make huge savings by opting to fund their purchase with a personal loan rather than dealer finance, it has been claimed.
According to uSwitch.com, opting for a low rate personal loan instead of dealership finance would result in buyers saving an average of £826 in interest repayments over three years.
To illustrate its claim, the company highlighted the example of a motorist looking to purchase a Vauxhall Astra TwinTop Air at a cost of £18,215 with a deposit of £1,821.51.
If this was done with dealership finance, his total interest repayments would stand at £2,871.91 over three years.
However, were he to fund it with Asda's Personal Loan, the typical APR would be 7.4 per cent and the total interest paid just £1,871.83.
Of the 2.4 million cars purchased in the UK last year, 419,290 - 20 per cent of the total - were sold in September and 50 per cent of these were purchased with dealer finance.
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