AA Personal Loans calls for car funds shopping

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AA Personal Loans calls for car funds shopping

A personal loan provider has advised those looking for a new car to adopt the same method for deciding how to finance it as they do looking for the car itself.

Research carried out by AA Personal Loans for its Deals on Wheels report, found that 18 per cent of the 2,000 Britons surveyed were intending to pay for their new or used car purchase using a personal loan, while seven per cent were looking to dealer finance schemes to fund the purchase.

"Whilst many people will shop around for their ideal car – looking at different makes and models – it's clear they don't do the same when it comes to finance," said Lloyd East, general manager of AA Personal Loans.

"Many opt for either forecourt finance or go to their bank or building society and both can be much more costly than a personal loan from a provider such as AA Personal Loans."

Mr East said that the money saved by using an AA Internet Loan for £7,500, with a typical APR of 5.8 per cent, could even be enough to pay for a continental holiday.

The company presented data that suggested savings of £156 to £1,141 could be made compared with loans from the likes of Barclays, RBS, Egg and First Direct.

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