Public & Small Business Car Finance Ignorance Is Costing £Millions

Tuesday, 3. February 2009

Three times this week I have had discussions about APR for absolutely no reason. The bottom line question to be asked about any finance arrangement is how much will it cost and can I afford it? I am completing a book listing over 40 ways to fund a car and I point out at the very beginning that APR is not important in many cases. I have compared an HP agreement with a PCP the latter of which has a higher APR but the total cost is much lower than the cost of HP and much less per month. We’ve all been strung along by so-called experts who haven’t the first clue about car finance or they wouldn’t be making the daft recommendations that they do! Get focused on what is best for you – total cost, cash flow, running costs, green credentials of car but stop this daft obsession with APR. Mandy can bung as much money as he wants into the manufacturers bank accounts he can even have chats with lenders in the car finance sector and bung a bit their way but if the public and small businesses are not educated about the options then frankly he might as well clear off down the pub along with the car manufacturers and drink to the demise of the motor industry. Consumers and small businesses are paying fortunes more than they need to because they don’t know enough about car finance – that’s the real problem. Oh and whilst we are at it they need to take a closer look at the credit reference agencies and stop them from listing incorrect information causing people to enter into more expensive agreements as mainstream funders decline more people after relying on the information stored. By Graham Hill