Last month, nearly 246,000 car insurance customers purchased cars without researching financial deals before hand, a new study shows.
Research by uSwitch.com shows the average price of the top ten best-selling vehicles is £13,631 but asserts that unsecured personal loans could drive up the prices by as much as 51 per cent.
Louise Bond, personal finance manager at the price comparison website, claims examining the available options before buying a car is essential.
She states: "Buying a brand new car is a big expense which can be seriously inflated … it would be such a shame to bag a bargain on the forecourt this weekend only to wipe out the savings."
The analyst found 246,000 car insurance owners will not consider the financial resources they will use to purchase a car until after the transaction is completed.
Earlier this month, the Society of Motor Manufacturers and Traders announced that total car production in January fell by 58.7 per cent.
