Car Buyers Advised to Use Personal Loans

Mon, 28 Sep 2009

Lenders are looking to take advantage of the launch of new car registrations by advertising new personal loans with seemingly low interest rates . Consumers are being advised not to get trapped in deceptively costly deals, at a time when borrowers need to minimise repayments and manage debts . Car dealers are currently trying to attract customers with the promise of zero per cent finance deals, though experts have warned that many of these deals expire after a year leaving borrowers with costly credit agreements to repay.

Consumers looking to take advantage of the scrappage schemes on offer are being advised to shop around, with personal loans likely to provide the cheapest form of credit. Although recent figures indicate an increase in the average interest rate attached to a personal loan, the loans tend not to have the hidden costs and unwanted surprises of finance deals or credit cards .

The motor industry has struggled since the start of the credit crunch, though the government’s scrappage scheme, giving people money off new car purchases, proved a success. Monthly purchases rose for the first time recently, as consumers take heed of signs of a stabilising economy and the good deals that remain on offer on car purchases.
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