Staveley Head

Staveley Head

February 24, 2010 01:00 ET

Car And Van Loans Are Not Getting Any Cheaper

FLINT, UNITED KINGDOM--(Marketwire - Feb. 24, 2010) - Despite the fact that the Bank of England base rate is being held at a record low of 0.05%, interest rates for car and van finance are the highest they've been since the turn of the millennium, and are not expected to come down in the foreseeable future.

Staveley Head is one of the leading van insurance providers in the UK and believes that many people will turn to vehicle leasing as an alternative to outright purchase.

Most people use bank or personal loans to fund the purchase of a new or used vehicle and these high interest rates are not doing anything to help the recovery of an already fragile motor trade.

People with a poor credit rating will suffer most as they will be excluded from the most attractive rates. Also, those wanting to borrow smaller amounts can also expect to pay a higher rate.

The solution is to shop-around. Don't assume that the finance deal offered by the vehicle dealership is going to be the best. Add up the deposit, the total cost of the monthly payments and the final payment to find out how much the loan is going to cost you. This can often amount to more than half the value of the vehicle you are buying. If you are buying a new car, dealers will, from time to time, offer 0% interest loans, and these are definitely worth consideration.

A spokesman for Staveley Head said "We are finding that an increasing number of our clients are turning to vehicle leasing rather than purchase because it holds a number of advantages. Depending on the deal they may not have to find a large deposit, thus helping their cash-flow. They save the cost of the interest on a loan and repairs and servicing may be included in the agreement. Also people with an impaired credit history may find a more beneficial lease agreement than when pursuing a purchase loan. Another bonus is the fact that people will have a brand new van to conduct their business, which can be exchanged for a replacement vehicle every year or two, with the minimum hassle. Lastly, whether buying or leasing don't forget to read the small print before you commit to the agreement. This is often where the less attractive terms are written, such as early settlement costs and cancellation charges, and it's too late to complain once you've signed the document. That is your acceptance of all the terms contained in the agreement."

Staveley Head have over 15 years experience in the industry and have earned a reputation for providing quality, cheap van insurance for organisations across the UK. Providing cover from a panel of leading insurers, including Zurich, Allianz and Royal and Sun Alliance means that the firm can offer the most appropriate cover for clients, at the most affordable prices. To find out more, visit: http://www.staveleyhead.co.uk.

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