Alliance & Leicester Warns Of Pricey Car Deals

Many drivers are wasting up to £1,400 by going through a dealer unnecessarily when buying a car, according to new research.

Pricey finance packages run by car dealers are used "as a matter of course" by almost a fifth (18 per cent) of drivers, with nearly half (47 per cent) of those who borrow money to buy a new car choosing an uncompetitive deal that could see them losing substantial amounts of cash.

Alliance & Leicester (A&L) statistics show that people borrow an average of £9,000 when buying a new car, which – on a typical deal with 13.2 per cent interest, such as a four year hire purchase arrangement with Citroen – could see the motorist forced to pay £2,500 in interest.

A&L personal loans manager Claire Alvey commented: "You don't have to be a rocket scientist to recognise that choosing finance from a car dealer with an astronomical interest rate could cost the earth.

"It's concerning to see that so many people believe they are getting a good deal, and are happy to go back for more pricey finance in the future.

"This could be because they are not researching what other deals are available, take the salesman's word at face value, or simply get caught up in the excitement of buying a new car."

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