Less than a fifth (18%) of drivers shop around to find the best deal when purchasing their car on finance, research by AA Cars shows.
More than one in 10 (12%) admits they simply can’t be bothered or are too busy to compare finance deals, which means they might miss out on a better deal.
James Fairclough, chief executive of AA Cars, explains: “With complex jargon and a wide range of financial products and rates available through car dealers, banks, manufacturers and other providers, it is no surprise that car finance is baffling for many to understand.”
But worryingly, Mr Fairclough adds: “Our research suggests that perhaps up to two million Brits have opted for the first offer available in order to secure the car they really want and may not know if they have got the best deal. It’s really important to take time to consider what’s available – and not let your heart rule your head so that you end up making an impulse decision you might later regret.”
Despite this, the report found that six in 10 (60%) people who bought a car on finance were happy with the deal they had got. There is, however, an age split in car finance deal satisfaction; with 72% of over 65s feeling happy compared to just 47% of 18- to 24-year-olds.
With all the car finance deals available, there is plenty of scope to shop around and compare offers to find the best value and save yourself money. If in doubt, use an online comparison service or visit local dealerships to discuss the options. Mr Fairclough advises: “There are some very competitive finance deals available on the market and small rate differences can add up to thousands of pounds over a number of years.
“Whatever finance option you choose, you should always make sure you fully understand what you are getting yourself into before signing on the dotted line – and don’t just take the first deal that comes along without looking at other options. You should also read the small print to understand all the terms.”