Say yes to cheaper van, home and car insurance

People looking to buy a new car next month stand to lose £140 million in interest, according to new research.

This is because the 405,000 estimated to be purchasing 57 plate vehicles will do so paying an average of £14,000 per unit at a typical APR of 7.9 per cent.

As a result, they may end up forking out another £1,707 over a three-year period.

In addition to road tax and car insurance costs, this may prove too much for motorists.

"Many new car buyers received 12 months' free cover last year, which was a great perk. But one year on, you're likely to find yourself paying a hugely inflated premium," said Richard Mason, director of insurance at the firm.

A personal loan may be the best way for some people to pay for a new vehicle, although consumers are advised to shop around for the best deal.

© Adfero Ltd