Cutting the cost of new car finance
New car registrations come into force on 1 September 2012, and one of the most popular ways to finance new cars is via a personal loan.
Nationwide Building Society figures show 37 per cent of customers take out a loan for this reason.
The most popular car on the market is the Ford Fiesta, which costs around £10,000.
Many people will take a personal loan from their current account provider to buy their car, but for some this could be a costly mistake. Nationwide research shows current account customers of some of the big banks could be spending nearly £1,100 more than Nationwide customers when buying a Ford Fiesta.
Nationwide charges 6.3% APR Representative to FlexAccount customers using the account as their main current account. The rate is applicable for loans of up to five years between £7,500 and £14,999 and can be taken out through a branch, over the telephone or via the internet.
Those who do not have a Nationwide current account can either open a Nationwide current account in a branch and make it their main account in order to qualify for a 6.3% APR Representative rate today or take advantage of a competitive rate of 6.8% APR Representative. This offer is available if customers apply via an online comparison website, such as Moneysupermarket, for loans between £7,500 and £14,999, for a term of up to five years.
Paul Wootton, Nationwide's head of personal loans, commented: "People will often put the time and effort into shopping around to find a new car, but when it comes to securing the finance they opt for the first deal they are offered.
"Buying a new car can be expensive, but taking the time to research your finance options could save nearly £1,100.
"While some car dealerships offer interest-free hire purchase, in many cases it's part of a special promotion on selected models and often requires a high deposit.
"The Nationwide personal loan offers one of the lowest rates in the market and is worth considering to finance that new car."
For more information, visit nationwide.co.uk.