Car loans and insurance 'as important as make and model'

 03/09/2007

According to moneyhighstreet.com, a recent AA survey showed that this year around 22 per cent more drivers are expected to consider options such as guaranteed car finance and secured car loans.

Motorists shopping for new or used cars should think as hard about car finance as they do makes and models, according to Reuters.

Citing a recent study by esure, the agency reports that one-fifth of consumers spend over 20 hours browsing magazines and considering different models - yet a quarter spend under an hour considering finance.

Reuters also states that the study illustrates how motorists are less likely to take into account car insurance - with 35 per cent neglecting to get a quote in advance of making their purchase.

An option suggested to help drivers with car finance is using their old car as money towards a deposit and looking at loan options.

"Be aware, though, that achieving headline rates on low-cost personal loans will depend on your credit rating," the article warns.