Motorists can avoid the financial cul-de-sac of lenders’ own payment protection insurance on new car loans by taking a low-cost stand-alone policy from an independent provider, says specialist provider Paymentcare.
With the latest batch of new cars due to roll off the forecourts on September 1, many motorists will be signing up for a low cost loan to make their purchase, but whilst they may have got themselves an excellent deal as far as rates go, they won’t be quids in if they don’t shop around for payment protection insurance.
“Buying a new car is an affordable luxury for many thanks to current low APRs,” says Paymentcare.co.uk managing director Shane Craig, “but the true cost of a car loan with PPI bolted on is considerably more than consumers may have intended to spend.”
A recent survey of the company’s customers has shown that they saved an average of £2,739.77 by taking a stand-alone policy with Paymentcare rather than their lender’s single premium policy.
“Being able to keep up your loan repayments should you become unable to work is clearly an essential consideration when borrowing a large sum of money, but it’s unlikely to be your primary concern when you’re test driving your dream car. When sold along with the car and the finance, it’s so easy for consumers to sign up for PPI at the same time without realising how much it’s going to cost or whether the policy is appropriate to their needs.” adds Shane Craig.
Income Protection News: News update: August 2007