Beware the car yard car loan

When you're purchasing a new car, it's easy to arrange your finance in that same car yard, especially with the low interest rates advertised. However, it could be more cost effective to obtain your loan elsewhere. When considering your car finance, don't focus on the rate. Instead, ask for the monthly repayment figure. The rates quoted by the car yards do not include the commissions they make on your finance application. Many will take a 3-4% commission and that will be added to your monthly repayments. These commission rates can be more than double that charged by other car loan providers. So next time you require a car loan, it's worth obtaining a quote from your broker or bank before committing to a car yard financier. You may be surprised at how much you could save.