accepted.co.uk - the loans search engine

Motorists looking at buying a new car may get a better deal with a loan rather than forecourt finance, according to Moneyfacts.

Spokesperson Michelle Slade said: "Getting the finance choice wrong could prove a costly mistake."

Borrowers to shop around, pointing out there are more than 40 providers offering a number of unsecured loans at different rates depending on whether you apply over the telephone or online., she advised

Research by Moneyfacts has revealed the difference between the best and worst deals available for a £5,000 loan could add up to as much as £769.

However, on a £10,000 loan that rises to £2,400.

Ms Slade claims motorists looking for a loan should always use the total repayment figure when working out which deal is best for them.

She states this is particularly important when buying payment protection cover on top of the loan as this can wipe out the benefits of a good interest rate.

In related news, uSwitch has advised people looking to take out a loan to do it sooner rather than later while there are still good deals to be had.