It was estimated earlier this year that around 400,000 drivers planned to purchase a new car during 2007, however many of them will end up wasting money by choosing the wrong finance deal.

According to research most car buyers will end up spending up to three months deciding on what type of car they want to purchase, but do not put as much effort in research into their financing.  Because of the lack of research for financing many buyers end up spending around £1,000 in unnecessary interest payments.  So as you research the market for the best car that is available it is a great idea that you search the finance market for the best loan to cover the cost of your car.

The first thing you need to decide is where to start your search.  Generally most car owners end up going for the great sounding finance deal from the showroom, however generally the showroom deals are far more expensive than a personal loan.  So you should start your search at your own bank and find out what the cost of a personal loan would be and search other banks and building societies as well as online brokers and comparison websites.

As you compare offers you will want to make sure that you view all costs that are involved and not only focus on the interest rate but other fees and charges that is involved in the offer.  You will also want to look out for payment protection insurance and if it is offered you will want to reconsider the offer to see if it is suitable for you.