According to website uSwitch.com around half of all the new cars sold at the new ‘58’ plate change are likely to have been financed with dealer loans and, they claim, nearly £170m will be forked out unnecessarily. The figures are based on what happened in September 2007.
At the time of writing uSwitch claimed that the average rate of interest on a car finance deal was 10.17% - 2.77% higher than the cheapest unsecured personal loan which then stood at 7.4%. The figures suggested that buyers could save £826 each in interest payments over three years on an average new car deal.
