Brits ‘wasting millions’ on car credit deals

British consumers are wasting millions of pounds by using car dealer finance to fund their vehicle purchases, according to recent research.

A study by uSwitch.com has shown that close to £174 million in interest payments could be avoided this year if Britons decide to use cheap unsecured personal loans rather than dealer finance to buy their new car.

In fact, with millions of people already struggling to become debt free, the average individual who funds their car purchases this year through credit from their dealership is likely to pay out more than £1,000 unnecessarily, the price comparison firm has concluded.

“Finding a competitive loan and having the money ready to buy the car immediately will not only ensure that people get cheaper finance but it also gives them more bargaining power to get the best purchase price,” said uSwitch.com’s personal finance expert Mike Naylor.

Earlier this week, MoneyExpert.com reported that one in six young consumers in the UK switched their credit card provider in the second half of last year in an effort to reduce some of their debt management burden.