UK Car Lending

I did a simple car finance check and it saved me £8,500 – here’s how I did it

AROUND 90% of all new cars sold in Britain are purchased using car finance.

It’s no surprise since most people don’t have much cash, but drivers are advised to do a simple check to save some cash.

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Dumitru-Olivian Dirlau saved £8,500 in interest payments by refinancing1 credit

Car finance experts Carmoola conducted a study of 1,000 UK drivers which found that 3.7 million (7%) motorists are currently feeling the pinch of existing car finance payments.

One in seven (14%) admitted that although they had actively switched energy, broadband or mobile phone providers in the past, they had never considered switching car loan providers.

Another in six Britons (16%) mistakenly believe that once you’ve made a deal on a vehicle you’re locked in for life.

Dumitru-Olivian Dirlau (21) from North London, refinanced just 4 months after taking out a car loan for his Mercedes GLA Class.

He said: “I managed to reduce my initial APR from 26.8% to just 12.9% via Carmoola, saving me nearly £8,500 in interest.”

Co-founder of Carmoola Aidan Rushby said: “We are becoming more savvy in many ways, but that seems to be a real blind spot for many motorists. We encourage all drivers to find a better deal.

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“The amount you’re likely to save will vary from individual to individual, but if your credit score has improved significantly since you entered into your original agreement and made your payments on time, that could be a considerable amount.

“A lower interest rate could significantly reduce your monthly payments, while opting for a longer contract term could also reduce your monthly expenses if you are looking for greater affordability.”

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As with any car finance, it’s essential that you read the entire agreement and understand the total cost, not just the monthly figure.

But many people don’t realize that if you’ve kept up with your repayments and your credit rating has improved, you can refinance and save.

Carmoola has tried to make it easier for motorists to know if this is an option.

In a few questions on its website, you discover your new rate and get an instant refinancing decision as well as significant savings.

it was specifically designed to be easy to use on a smartphone and he estimates most people could save money in just eight minutes.

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