Britons could be wasting nearly £4 billion a year by buying new cars via traditional loans, claims Virgin One.
With new ཰' registrations set to be driven out of showrooms next month, the Virgin One account is urging would-be owners to check they are paying as little as possible in their bid to own a dream machine.
By using current account mortgages to borrow cash at mortgage-style interest rates motorists could slash nearly £1,600 off the cost of buying a £15,000 Volkswagen Golf or similar model, the lender claims.
With Britons currently buying around 2.5 million new cars a year we could be overspending as a nation by £3.9 billion, says the One account.
Virgin One account's James Duffell says: “Choosing a new car should be a pleasure, but too often the fun is spoilt by the cost of the finance most people need to fund it. Often people are paying over the odds when there is an alternative that is cheaper and has added benefits such as tremendous flexibility which means people can overpay, underpay or skip payments when they need to.
“Just because the loan is linked to the mortgage doesn't mean it takes as long as a mortgage to pay off. Customers can also use their account to save for a new car – or anything else – in a virtual savings account, effectively earning a mortgage-style rate of interest, tax-free.”