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Car finance helps beat rising car prices

The cost of buying a new car has increased markedly in recent years, a problem many drivers are turning to car finance to help resolve.

The cost of buying a new car has increased markedly in recent years, a problem many drivers are turning to car finance to help resolve.

Since 2001 the average purchase price of a new car has increased 23 per cent, rising from £13,900 six years ago to £17,100 today, according to EurotaxGlass's.

Drivers have however been able to offset these increases by taking out a competitive car credit deal, allowing them flexibility over their repayments so they can have the car they want at a price they can afford.

"Aspirational brands like BMW, Audi, and Mercedes have enjoyed significant market growth as customers switch allegiance from traditional volume-brand manufacturers," said Adrian Rushmore, managing editor at EurotaxGlass's.

"In addition, the lure of new diesel technology has also proved to be irresistible to many, even though the price premium over a petrol model could be between £1,000 and £1,500 for the same specification of car," he added.

Many drivers are also turning to new hybrid models to help cut their carbon footprint, using car finance and car credit to offset the higher initial purchase price of these greener vehicles.

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