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Why getting it wrong could cost you thousands more

Why getting it wrong could cost you thousands more

Category: Loans

Updated: 31/10/2008
First Published: 20/02/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Motorists everywhere are now searching across the country to find the best deal for the new 08 plate cars. Unfortunately the same effort is rarely put into sorting out the best car finance and car insurance deal and getting this wrong can be an extremely costly mistake.

It may seem easier to opt for the forecourt finance that's offered at the garage, but checking out what's on offer on the rest of the market could see you making significant savings.

Latest Moneyfacts.co.uk research shows that on a £15000 personal loan the difference between the best and worst personal loan is nearly £3000. This increases further to a staggering £7,200 if you take payment protection insurance with the personal loan.

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What else should you consider?

When shopping around, make sure that you compare the total repayments for the personal loan. Payment protection does not have to be taken out with a loan.

Remember that the majority of the personal loan lenders offer typical or personal pricing. Don't assume you will get the personal loan rate advertised; the rate you will receive will depend on your credit record.

Don't be swayed by incentive gimmicks such as free breakdown cover. Usually these personal loans are much less competitive and the saving you make will more than pay for separate cover elsewhere.

How else can you save money?

It's not just on the finance where you can save money. Once you have selected and paid for your new car, you will need to get it insured.

Car insurance providers target certain types of customers. If you were to phone around for quotes, not only would you be wasting a large amount of time, you might not necessarily call the provider that could offer you the best deal.

Moneyfacts.co.uk compares over 90% of the car insurance market. By just entering your details once you can find the cheapest deal for you in only a few minutes. Our latest research shows that the difference between the best price and worst price for Car Insurance is as much as £732 for the average 22 year old male insuring a Ford Focus in Norwich.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.