Drivers bamboozled by finance packages

A survey by the RAC has found that car buyers are being left increasingly confused by the range of finance options.

RAC Flexiloan had discovered that a quarter of drivers don’t understand the various finance options available to them when coming to an agreement with a dealer or company.

Further, 72% failed to shop around for the best deal and took the first finance package offered by a single car dealer.

A third of the buyers approached also admitted they felt they had little control over how much deposit they paid, the scale of their optional final payment or the size of their monthly payments, while 45% also admitted they’d been forced to cut back to meet their repayments, with the general consensus being the power lies with dealers and finance companies.

RAC Flexiloan spokesman Alastair Crossley said, ‘We saw an opportunity to provide those looking for their next car with a radically different offering and one that puts them in complete control from beginning to end.

‘Flexiloan gives buyers the flexibility which schemes like PCP offer, but then offers so much more: buyers can choose to buy any car that is at least two years old and can arrange their finance securely online, meaning there is no need for awkward conversations with pushy sales agents.

‘Just as the RAC has innovated to help its members at the roadside – such as being the first breakdown company to provide drivers with a universal spare wheel if their car doesn’t have one in the boot – we are now determined to do the same when it comes to finance.’