Study finds many don’t read the fine print…
New research has found many car buyers don’t know exactly what they’re signing up for when arranging car finance.
Parkers.co.uk research found more than 20% of car buyers using car finance do no research into their options, with half simply picking a scheme on the spot at the dealership.
25% of borrowers didn’t know how long their loan contact was for, and more than one in 20 motorists didn’t even bother to check how much their monthly payments are.
Parkers.co.uk finance editor, Christofer Lloyd, says borrowers need to take the time to check what they are getting into.
“You wouldn’t sign up for a mortgage without comparing prices or shopping around, so why accept the first finance deal you’re offered when getting a car?
“There may be some unscrupulous sales people out there, but car buyers can do much more themselves to ensure they get the best deal.”
Ways to ensure you get the best car finance deals:
- Haggle on the list price before haggling on the finance details
- Choose an in-stock car or demonstrator for a bigger discount
- Don’t be coerced into a longer contract; longer contracts mean more interest
- Don’t get fixated on monthly prices; finance with the lowest monthly payment isn’t necessarily the best value
- Shop around