People who are considering taking out a personal bank loan in order to finance the purchase of a new car should ensure they shop around to secure the best deal, they have been advised. According to AA Personal Loans, an increasing number of people are thinking about purchasing a new car this year, despite the fact that rising interest rates are impacting negatively on household finances and making loans more expensive.
Indeed, a survey has found that 33 per cent of drivers aim to buy a new vehicle in the next 12 months - up from the 26 per cent who made a similar admission this time last year. Moreover, 33 per cent of those considering the option of buying a new car in the next year would do so with the help of a personal loan.
Increasing interest rates appear to have reduced demand for used cars - with a 16 per cent decline in this area noted by researchers - although it seems that they have little impact on the new car market.
It is thought that improved reliability, lower running costs, greater comfort and reduced environmental impact are the main drivers of demand for new cars - and the fact this demand is showing no sign of abating even though financial conditions are less conducive to purchasing means it is especially vital that potential buyers search for the best possible deals.
The AA also revealed recently that the average car insurance premium in the UK rose to ?822 the second quarter of 2007. This will act to stretch consumers' finances even further, compounding the need to search for the most suitable personal bank loan product.
However, James Ketchell, a spokesperson for the Consumer Credit Counselling Service (CCCS), has urged people considering purchasing a new car using a bank loan to ensure they can meet the repayment schedule before they agree to the terms - and to understand that if their application is rejected, there is a reason for this.
"The first thing is if they are having difficulties, there is a reason that someone making an individual assessment of their situation has decided they might not be able to repay that money so I think then people have to question whether they actually can afford to take the debt out in the first place and then really see whether that is really needed or whether it is merely wishful and something that people want rather than something that they need," he commented.
The online lending market is growing at a fast rate due to its huge popularity among Britons. The best thing about online personal lending market is that borrowers have high probability of getting exactly the kind of loans they are looking for. Many people in UK have got a better deal when they applied over the internet, than what they were getting at local banks or the high street lenders.
Around 10.5% of the lending market in UK is covered by online lending arena. So what makes online personal loans so attractive? Borrowers in UK, who have applied and availed loans from online lenders have got the following benefits:
customised terms and conditions as per the requirements added features that can benefit the borrowers down to earth interest rates flexibility in the term of repayment light monthly EMIs trouble free processes and satisfactory customer service
Benefits and features on personal loans depend from lender to lender.
These features play a vital role in making online lending industry so popular and highly preferred in UK. As per Datamonitor, market analyst, most of the online loans are availed by people between the ages of 25 to 35.
The best way to find out a suitable loan is to shop around a little bit. People who apply for personal loans online, get plenty of options and offers with different features. The next step that people usually take is to research all the options. Not just study the existing offers, they also look around open for different plans.
You can select from secured loans and unsecured loans as per your requirements as well as limitations. After a thorough study, you can narrow down your search by prioritising the offers as per your needs. Having done that select the one that provides you optimum benefits and also meets your requirements sufficiently.
Both Andrew Regan & Alice Murphy are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Andrew Regan has sinced written about articles on various topics from Travel and Leisure, Small Business and Modelling. Andrew Regan is an online, freelance author from Scotland. He is a keen rugby player and enjoys travelling.. Andrew Regan's top article generates over 20400000 views. to your Favourites.
Alice Murphy has sinced written about articles on various topics from Unsecured Loans, Debts Loans and Finances. The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done masters in Business Administration and is currently assisting ask4loan as a finance specialist. For mor. Alice Murphy's top article generates over 6600 views. to your Favourites.