With the new 66 registration cars out on 1st September plenty of people will be looking for a new set of wheels, but whether you’re buying brand new or second hand it’s worth shopping around to check out the cheapest finance options.
Andrew Hagger, Personal Finance Expert from Moneycomms said: “Consumers spend many hours seeking out the car they want including the perfect colour, specification and mileage so why not be equally choosy when it comes to sorting the finance for their vehicle?”
Until recently consumers have tended to take out a personal loan from their bank, however Money Transfer credit cards have become more mainstream and are a flexible low cost alternative that can save you hundreds of pounds.
Three of the biggest card providers Virgin Money, MBNA and Tesco Bank offer money transfer cards at 0% interest for at least three years – and enable you to transfer funds from your card limit to your current account.
There is a one off money transfer fee to pay (2.39% to 3.94%) but as you will see from the tables below that despite this, these cards are still way cheaper than even the best buy personal loan deals.
Hagger added: “We’re not talking just a few pounds difference, the potential savings run in to hundreds of pounds and could help cover the cost of your car insurance, road tax or a good few tanks of fuel.”
For example on a £7,500 sum a Virgin Credit Card Money Transfer will save you £503.55 in interest when compared with a loan from Metro Bank at 5.9% APR.
On a smaller loan the savings are more significant – for example an MBNA Money Transfer works out £956 cheaper than a £5,000 loan over 3 years from TSB at 13.9% APR.
If you go down the money transfer route – ensure you make your repayments on time each month otherwise you’ll lose your 0% promotional rate, but providing you do this it’s an easy way to get an even better deal on your new car.
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