Money Watch – Personal Finance Blog

Don’t Spend Too Much For Your New Car

The new car registration plates are just around the corner (1st March), so if you’re on the look out for a new car, have a think about how you’re going to pay for it.

A report by comparison website uSwitch.com suggests that Brits will spend over £300million too much on new cars this spring, with the average interest rate for car finance at a whopping 13.3% APR, which is over twice the rate you can get on personal loans.

The message is simple – don’t cave in to the pressure of the car salesman, or go for what might seem the easy option by taking out the dealers finance option with your new car – shop around for a cheap personal loan, and be prepared to say no to the car dealer. And try to haggle for a full tank of petrol while you’re there too. That’ll save you a fair few quid more, too.

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