Car Loans Soar Lenders Increase Rates
Car Company Loans Soar With Other Lenders Increasing Their Rates
You would be interested to know that probably this is the right time to buy your dream car from vehicle dealerships since other lenders have increased not only their interest rates but have rejected loan offers to many as well. The number of people purchasing cars through loans from vehicle dealerships has seen a sharp rise in the last year. Volkswagen is happy to announce that it has already been able to achieve its 2008 target of car loans worth £1bn when in fact there has been an overall dip in car sales in the UK.
Volkswagen’s managing director Graham Wheeler assesses its success to the availability of funds which enables them to surge ahead than other financial organisations. Credit crunch doesn’t affect their lending capacity because of the long term planning they make. Though historically, car finance is expensive than personal loans, several high street lenders over the past year have been increasing their rates of interest. The comparison portal, Moneysupermarket.com states that the average top five cheapest personal loans stands today at 7.7 per cent compared to 6.5 per cent last year. Moreover, those applications which have good credit rating are only being accepted.
Volkswagen is offering loans at a rate as low as 7.8 per cent APR while Renault loans are more than 8 per cent and offering of Peugeot Citrogen starts at 7.9 per cent. The success of car finance products is attributed to two major factors says Tim Moss. At present, personal loans are difficult to get while with car finance your loan is at a less risky zone as it is secured against the metal. Earlier consumers would not opt for car finance as other loans were available at cheaper rates of 6.5 per cent while now many have realised that they are left with little or no choice and that car finance is cheaper compared to personal loans. Though car sales have dipped sharply in the past few months, yet there are some excellent deals if you want to purchase now. Moss himself proudly states that he has just become the proud owner of a brand new Renault at £14,000 which had a price band of £21,500.
