I made a simple check on my car finance and it saved me £8,500 – here's how I did it | The Sun
AROUND 90% of all the new cars sold in Britain are bought using car finance.
It's not surprising given most people don't have that much cash lying around, but drivers are being urged to make a simple check to save money.
Car financing experts Carmoola conducted a study of 1000 British drivers which found that 3.7 million (7%) motorists are currently feeling the pinch on existing car finance payments.
One in seven (14%) admitted that while they have actively changed energy, broadband or mobile phone providers in the past, they have never considered switching car loan suppliers.
A further one in six (16%) Brits wrongly believe that once you take out an agreement 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.
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He said: "I managed to reduce my original APR of 26.8% to just 12.9% via Carmoola, saving me nearly £8,500 in interest."
Carmoola co-founder Aidan Rushby said: “We’re getting savvier in so many ways, yet this seems to be a real blind spot for many motorists. We’re encouraging all drivers to dig out a better deal.
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“How much you’re likely to save will differ from one individual to another, but if your credit score has improved considerably since you took out your original agreement, and you’ve been making your payments on time, then it could be a considerable amount.
“A lower interest rate could dramatically reduce your monthly payments, while opting for a longer contract term could also slim down your monthly outgoings if you’re looking for greater affordability.”
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As with all car finance, it's vital you read through the entire agreement and understand the total cost, not just the monthly figure.
But many people don't realise that if you've been keeping up with your repayments and your credit rating has improved, you can re-finance and save.
Carmoola has tried to make it easier for motorists to find out if this is an option.
In a few questions on its website, you find out your new rate and get an instant decision for refinancing as well as any important savings.
it has been designed specifically for ease of use on a smartphone and it reckons most people could be saving money in just eight minutes.
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