Car buyers urged to shop around for the best finance deals

With millions set to take to the roads next month in the new car registrations, a little financial forethought before you hit the forecourt could put you in a winning position.

Last year saw over two and half million new car registrations take to the roads, and with the release of the latest number plates next month set to whip up a seasonal frenzy of car purchasing, Bradford & Bingley warns buyers to look carefully at their finance options before they leap into the driving seat.

Whether it's a sporty little number for whizzing around town or a sturdy 4X4 for cruising around the countryside, most people will spend hours trawling from dealership to dealership making sure they've got the perfect car. However, how many of us invest the same time in finding the right finance? With average APR's on some car finance deals heading towards 14%, scouring the market for the most competitive loan options will soon put your finances in top gear.

Mike Senior, head of personal lending at Bradford & Bingley, comments: "September traditionally sees a seasonal rush of new car purchases with drivers eager to be the first onto the road with the latest number plates. Although it may seem the speediest option to take out finance offered by the dealership, you could be leaving the forecourt seriously out of pocket. With the best personal loan rates below 6%, it really does pay to hit the brakes and take your time researching your finance options carefully, ensuring that you get the cheapest deal available."

Check your position on the starting grid - Some finance plans offered by car dealerships will often require a deposit of between 10-40% of the 'on the road value' or a part exchange on an old vehicle to secure your borrowing. If you don't have savings or security to match, you could find that it puts you to the back of the starting line up and you may not secure the car you want. By researching the market fully, you may find a personal loan that will offer you the full amount you need to purchase your dream machine, and at a competitive rate.

Fine Tuning - Attention to detail will also get you racing ahead. Some car finance deals, for instance, are restrictive on the term of the loan. The majority of dealership payment plans will last for two, three, or five years, however, by shopping around you may find more flexible repayment term that suits your needs and budget more accurately.

Parking Tickets - When choosing your loan, check if you can overpay or if you can repay your loan early. You may be heavily penalised if you decide to 'park' your payment plan and faced with extra costs for early repayment.

Senior concludes: "There are a number of important details to consider when buying your car, but how you're going to pay for it should be in pole position alongside the make and model. Failure to shop around or getting a broker to do the shopping for you could leave a big dent in your finances. Why pay more than you need to? A little bit of forethought will definitely help you on the forecourt."