Drive a hard bargain for your new car

UK motorists could waste up to £6.1 billion by using expensive finance deals from the car showroom when they buy their new motor and £1000s more if they do not shop around for the car itself, reveals research from moneysupermarket.com, which announces the launch of its new Motoring Channel.

Ahead of the new car registrations on September 1st, moneysupermarket.com’s new Motoring Channel allows consumers to compare new car prices, personal loans, motor insurance, car hire services and breakdown cover at moneysupermarket.com/motoring.

Finding the best Car Finance deal

moneysupermarket.com has compared a selection of current car finance deals available through the car showroom, typically charging 13.2% APR, against the best personal loans available. With loan rates as low as 5.6% APR, the savings are significant.

According to the research, if a driver looking to buy a new Renault Megane costing £15,980 opts for the finance deal on offer from Renault at 13.8% APR over three years (with a 10% deposit), the total amount they will repay is £17,993.84. However, if instead they opt for the most competitive personal loan on moneysupermarket.com - currently 5.6% APR with either Northern Rock — the total amount repaid would be £15,635.88 offering them a huge saving of £2,357.96.

Stuart Glendinning, director of personal loans at moneysupermarket.com said: "Our research shows that accepting the finance deal offered in car showrooms, rather than shopping around for a low-rate personal loan, can cost motorists dear. With an interest rate drop this month, the cost of borrowing has never been so cheap - with personal loan rates as low as 5.6%, you would be mad to consider the showroom finance deals on offer. Most people will look at different showrooms and magazines to research the best price to pay for their car but need to watch that they don’t let their guard down and pay unnecessarily for an uncompetitive loan."

The best deal for your new car

Before you consider payment for your car, think about the most cost-effective ways to buy it too. moneysupermarket.com’s newly launched comprehensive Motoring Channel enables motorists to compare the cost of buying the car of their choice from different leading retailers including jamjarcars and best4cars.

By using the new car channel, motorists can save £3,835 on the Renault Megane alone, costing £15,980 from the dealer, but only costing £12,145 from @vanti-cars.co.uk.

For a Renault Megane, the total cost saving of using moneysupermarket.com for the purchase of the car and the finance, could be a staggering £6110.96 — the equivalent of a new Ford Ka, and still have a pocket full of change.

Stuart Glendinning continued: "Cars are often referred to as an owner’s "pride and joy" — but I guarantee there is none more proud than the owner who has saved over £6000 by searching for the best car and finance deal. With this amount of money to be saved, it is certainly worth investing a little time and effort to do your research. Using moneysupermarket.com’s Motoring Channel eliminates much of the hard work and enables you to find the car of your dreams within minutes."