21/04/2008
When buying a new car, the vast majority of us take out a loan in order to pay for it. After your house, your car is probably the most expensive purchase you will make, so getting the right deal on your loan is very important.
It is easy to assume that when buying a car, loans specifically designed for that purpose will be the best, but this is not necessarily the case. Especially if you are buying a budget car, a personal loan, rather than a car loan, could be cheaper.
A typical UK car loan has an annual percentage rate (APR) of 9.88%. AA car loans were found to be the cheapest with a rate of 6.9% APR, a rate which rivals those of many of the personal loans availiable.
However, it is sill more expensive than the personal loans offered by Tesco and Your Personal Loan. On a £10,000 loan, you would pay back £156 less with a Tesco personal loan than with AA car loans.
With car loans.co.uk, the difference was even more dramatic, paying back a whopping £976 more than the cheapest personal loan. With savings as big as this to be made, shopping around really is worth it. Source:
http://www.onlyfinance.com |
