Car Finance

[Carrie]

Hopefully sometime pretty soon I'm looking to change my car. I'm aiming on getting something that's about 12 months old rather than a brand new car, but just out of interest have been looking at new cars. This led me to look at the small print on the figures quoted as example car finance. I think it was Renault where the car finance was over 3 years based on an annual mileage of 10,000 with excess mileage being charged at 6 pence per mile. I thought that was bad enough, but then spotted in the small print for one of the car supermarkets that their finance was based upon an annual mileage of 6,000 and excess mileage would be charged at a specified mileage rate. Now, lets just take the Renault example and my average annual mileage which is around 22,000 that would mean I'd be paying an annual excess of £720!!! Okay, so I do quite a high mileage, but insurance companies put the average for annual mileage at 12,000 so in both these cases the finance only accounts for a mileage that is below average. Looks like someone's found a pretty good way of making some money here.