Loan News Motorists Wasting Millions On Car Finance

Written by Editorial Team

19 August 2004

The AA says that car buyers waste millions each month because they simply fail to shop around loan providers when purchasing a car.

Currently, three-quarters of car buyers go no further than their bank (51 per cent) or the car dealer (27 per cent) to arrange funding for a car.

“These are some of the most costly places to arrange car finance,” Lloyd East, director of AA Personal Finance, warned.

“Nearly two-thirds of all car buyers (63 per cent) take up to a month shopping around for their ideal motor, yet half of those using finance take less than a week to research and arrange it.”

It is estimated that motorists waste a total of up to £1.3 billion.

Mr East concluded by saying: “Other deals, particularly those offered at point of sale such as hire purchase, can sting you for even more.