Saturday, March 6 2010
Although the base rate for the Bank of England is being kept at an all time low of 0.5%, the interest rate for automobile and van financing are at the highest rate that they have been since the year 2000, and they are expected to be any lower anytime soon.
Van insurance comparison site from The Van Insurer
Staveley Head, one of the top providers of van insurance in the United Kingdom, thinks that many will consider leasing a vehicle as opposed to purchasing an automobile or a van.
When buying a vehicle, most people borrow the money to cover the purchase; the current high interest rates are not doing anything to aid the rebound of the auto industry that is already on shaky ground.
The record high interest rates will hurt people with a poor credit rating the most since it will keep them from getting in on the lower rates. Additionally, people who want to obtain lower loan amounts will have to borrow money at a higher rate.
For those who are planning to purchase a vehicle, the thing to do is to shop around. When dealing with a dealership, do not make the assumption that the financing that the dealership offers is going to be the best interest rate that you can get. Do the math; add up the deposit, the full sum of the monthly payments, and the last payment to determine the total cost of the loan. The total price of the loan can oft times be more than half of the price of the vehicle being purchased. So shop around, and do not be afraid to negotiate with a dealership to try and get a better rate; getting a good interest can save you a considerable amount of money on your vehicle purchase. In addition, when buying a new vehicle, some dealers will occasionally offer 0% financing, that is definitely a finance deal that is worth considering.