Good car deals available for those who shop around

With new car registrations out this month, you may be thinking of trading in your old car and buying something brand new. And if you drive an old banger you may even be thinking of taking advantage of the government's car scrappage scheme.

But with the credit crunch biting into many people's finances, you'll want to make sure you get the best deal possible to finance your purchase. So it is important to shop around, not just for a car, but for the best way to finance it.

Nationwide Building Society currently has the lowest personal loan rate on the market. If you have a Nationwide FlexAccount you could benefit from the Society's market leading rate of 7.7% APR typical on loans of between £5,000 and £14,999. This typical rate beats the supermarkets and all the high street banks - the same low rate applies whether the loan is taken out through a branch, over the telephone or via the internet.

If you need to borrow money to buy your new car, a personal loan could be the cheapest option. The finance packages offered by dealers may look appealing, especially if there is a 0% deal. But make sure you know what you are letting yourself in for. A special offer of 0% finance for the first year that then moves onto a higher rate for the rest of the term of the loan may well prove more expensive in the long run.

However you finance your car, make sure you know what your monthly payments will be and what the total amount payable will be over the term of the loan. And most important of all, make sure you are not borrowing more than you can afford.

Chris Rhodes, group product and marketing director, said: "Whether you are buying a brand new Audi TT or a second hand Renault Megane you'll want to get a good deal on the car, and a good deal on the loan you take out to pay for it. So it pays to shop around not just in the showrooms, but also to find the best personal loan rates. I'm delighted that for Nationwide current account customers we've taken the pain out of shopping around, by making sure we offer them the best deal around. This is just the first of many offers we'll be providing to Nationwide current account customers over the coming months."