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New research by Halifax Unsecured Personal Loans shows that we Brits are prepared to hunt for the best finance deal when it comes to buying a car.
The survey conducted by NOP on behalf of Halifax Unsecured Personal Loans shows that, of those people who would consider buying a new car on credit, only 12% would use the package offered by the dealer or garage. Encouragingly, nearly two-thirds of those questioned (64%) said they would shop around for the best finance deal or loan.
Results:
If you were purchasing a new car on credit, would you
Shop around for the best loan or finance deal 64%
Get a loan from the bank where you hold other products 23%
Use the finance package offered by the dealer/garage 12%
Don't know 1%
Gary Duggan, head of Halifax Unsecured Personal Loans, comments: "The results of the survey are very encouraging. Car buyers need to decide what they're looking for in a loan and actively seek out the best deal for them."
Halifax unsecured loans offer a very competitive 6.7% APR on loans over £7,000. However, for many customers APR isn't the only consideration.
Gary Duggan continues: "It's important to look at how your repayments are structured. This doesn't mean just looking at the length and amount of loan repayments. When you buy a new car, there are also a number of other out of pocket expenses such as insurance and road tax. This can put real pressure on your finances. With a Halifax unsecured personal loan there are no repayments for the first three months, allowing customers to sort their finances before they start repaying the loan."
Would-be new car buyers looking to buy a car on credit should look at the following factors:
Loan term how long will it take you to pay off the loan
Monthly payments what will your monthly repayments be
Insurance do you need payment protection insurance (look at the level of cover as well as the cost)
Special features e.g. would you like a loan with no repayments at the beginning
Balloon payment some car loans come with a balloon payment to be made at the end of the loan term (if so, you need to consider how you will manage this don't rely on the value of your car!)
Repayment options can you repay your loan early if you want to
and what about that little extra?
As part of the research, Halifax also looked at the current fashion for personalised number plates. Surprisingly, the results showed that nearly one in ten (7%) of those surveyed said they had, or currently did own a private number plate.
Of these, a further 50% said they would buy another. Of those that didn't own a personalised number plate, one in four (23%) said that they would consider buying one.
Gary Duggan comments: "Private number plates are increasingly popular be they for a birthday or Christmas present or just to make that new car extra special. The cost of a private number plate can vary massively, from £250** to in excess of £200,000!"
a numbers game
Worryingly, when the Halifax research looked at whether we understood the new style of number plate only 7% of us actually gave the correct answer.
New style number plates feature two letters, two numbers and a further three digits. The first two letters reflect the area the vehicle was registered. The two numbers identify the age and the last three digits are a random combination.
Gary Duggan concludes: "It's important that people understand the new style number plates especially if they're buying a second hand car. One glimpse at the number plate and they can easily identify the age of the vehicle."
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