Motorists Set to Overspend With New Release

As mentioned a few days ago, it is almost time for the latest sea of brand spanking new cars to be released. Just a couple more punishing weeks to get through and these pristine beauties will be available to buy, proudly complete with their '58' registrations.

Although there will be many out there who are fortunate enough to purchase a September 2008 car outright, research carried out by Uswitch.com confirms that over half of all new cars purchased will be done so with car finance loans. Rather than shop around for a competitive loan, it seems that drivers, dead set on getting their hands on a brand new car, are making the mistake of choosing to take up garages' finance plan 'offers'.

Either motorists are trusting that reputable dealers will be providing competitive finance deals and are not reading the small print (a mistake I am proud to say I did not fall for, much to the car dealer's horror), or they simply do not realise that it is possible to get better deals. Is this really the case? Is it simply that people really do not know that they can get better finance offers elsewhere?

It is reported that drivers in the UK will waste £168 million between them, some paying around a grand extra on their cars (or more!) by signing dealers' finance schemes (which have, on average, an APR of 10.7%). Blimey, I thought the interest added on my Top Shop card was bad enough! Paying over the top for finance is an expense that can be easily avoided. Buyers just have to be less hasty - take time to look around for a good deal, rather than jump straight into the driver's seat!

My advice to all is to get looking for a competitive loan in the run up to September in order to avoid added, unnecessary expense. Right, that's my generous dose of wise words for today. My work here is done.

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