Car loans play a big factor in consolidating

As more and more people take out finance from showrooms when purchasing new cars without researching the alternatives, many are turning to consolidating their debts to correct their error.

A spokesman for AA Personal Loans commented: "With cars losing up to a third of their value when they leave the showroom, consumers should look to make sure they get a competitively-priced motor loan."

A leading financial comparison website has also found that British consumers are losing out on £228 million by signing up for showroom finance deals instead of competitive personal loans when purchasing a new ‘07 reg car.