AA Financial services has warned car buyers to beware of garages offering finance deals that may not be all they appear.
Now that the government-backed car scrappage deal has come to an end, many high street dealers are making customers offers that sound far better than they really are, the motoring group’s financial wing said.
It strongly recommended comparing any deals offered with others on the market – especially online. Car finance hinges on the APR, which includes interest payable each year as well as set-up charges and any administrative fees. Some garages are quoting “flat” rates for customers which leave out additional fees.
The AA gave one example of a 6 per cent “flat rate,” which actually concealed an APR of 13.5 per cent – and it stressed that any dealer who neglects to mention the APR of their car finance deal was in contravention of
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