Those considering buying a new vehicle next month when new registration numbers are brought into effect have been advised that dealer finance arrangements may not be the best purchase option.
According to uSwitch, many dealership finance arrangements have higher annual percentage repayment rates when compared to best rate personal loans and as such, Britons could end up paying as much as £1,000 more on the purchase of a new vehicle if they pursue the former option.
It noted that September is a busy period in terms of car sales, with 20 per cent of the 2.4 million cars sold in the UK last year occurring during this month.
Simeon Linstead, head of personal finance at uSwitch, advised: "Shopping around for a competitive loan before shopping around for the car is essential. Buying a brand new car is a big expense which can be seriously inflated."
The price comparison site has also recently revealed that UK motorists pay the highest fuel bills in the whole of Europe, with petrol costs averaging £1.19 per litre.
InsureandGo offers competitive car and
van insurance options for those planning to make a purchase in the coming months.