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Buy online to cut car finance costs

Many consumers admit they've taken out an expensive payment plan at a dealership simply because it was easy, according to a new study.

Many consumers admit they've taken out an expensive payment plan at a dealership simply because it was easy, according to a new study.

One in five respondents to the Alliance & Leicester survey said they'd taken a car loan from a showroom, leaving themselves liable to face higher interest payments and charges.

Close to half of this group admitted they took the dealership deal because it was simple to do, despite the considerable savings that can be made by arranging car finance online.

Dealers know they have a captive audience and can raise their prices accordingly, but securing your car finance deal before you go in puts you in a stronger position, and can help speed up the car buying process.

"The research highlights how, despite good intentions, many people don't give careful thought to how they borrow," said Richard Al-Dabbagh from Alliance & Leicester.

He also warned that many individuals are "paying over the odds for large purchases on costly store cards or expensive dealer finance".

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