Motorists could 'waste £228 million' on car credit
Motorists could waste £228 million on car credit, according to data from uSwitch.com.



The price comparison website said that consumers looking to buy their dream car could squander their money on high-interest showroom credit deals.

Buyers would do well to consider funding their '07-registration car purchases with personal loans that offer kinder interest rates, the group said.

The company is making the comparison as March, the busiest month for car sales, approaches. Last year nearly a fifth of all car sales were made during the month.

Nick White, director of financial services at uSwitch.com, said: "A rushed decision or just taking the finance deal offered by the car dealer could turn out to be a long term financial burden."

He added: "The average interest rate for a car showroom finance deal is 10.12 per cent APR which is 4.22 per cent APR higher than the best loan rates available and nearly double the current Bank of England base rate." An estimated 2.3 million cars were sold in the UK last year.

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