Car buyers urged to shop around for finance
Monday, 14 August 2006A new survey from the Financial Regulator shows that consumers can save between €500 and €1,000 in car finance arrangements.
The survey - the second on car finance from the Regulator - urges consumers to shop around. It also highlights some issues to be aware of before buying car finance, such as what happens if you want to end a hire purchase agreement early.
The survey compares ten of the main financial institutions giving car finance deals. It also features two profiles of consumers buying cars using finance.
The Regulator says that some of the finance arrangements in the survey are only available through car dealers, while most are available directly from a finance house.
It points out that the main difference between a hire purchase deal - which is often called finance - and a car loan, is that with hire purchase, you do not own the car until the last payment is made.
Today's survey also warns on the cost of payment protection insurance, which covers all of some of the repayments if a person gets certain illnesses or are made redundant. The cost of this insurance could add between €31 and €69 a month to repayments on a €13,000 agreement and between €36 and €76 on a €22,000 agreement. It adds that people do not have to take out this type of cover.
The survey is available at www.itsyourmoney.ie
