More car buyers are choosing to take finance loans at the car dealers, even though there are cheaper deals available elsewhere.
According to the Finance & Leasing Association (FLA), almost two thirds are now consciously choosing to take finance from their car dealer, up from 56% last year.
Perhaps it is the case that more people prefer the convenience of having all paperwork in one place, under one payment, but this is actually an incredibly pricey option in comparison.
MoneyMail actually revealed earlier this year that a lot of car sales staff aren‘t clear when explaining additional fees or interest rates, so customers may often think they are getting a better deal when this isn’t always the case.
They went on to recommend looking into personal loans at the bank which can actually offer incredibly competitive interest rates, especially if you have a good credit history.
Of course, the best way to lower monthly costs is to lease a car instead of purchasing outright, in order to receive all the benefits of a new car but without the price tag.
It will be interest to see the figures next year. With the rising cost of fuel, perhaps more people will read their small print in the future to save some pennies.