New Car Registrations

New Car Registrations
Thursday 1st March 2007 will be a busy time for new car showrooms up and down the UK. The 07 registration comes into force on March 1 and the attraction of driving a gleaming car with a new number plate is tempting for may motorists.

Of 2.3 million new cars sold last year, nearly one in five - 435,800 were sold in March, slightly more than in September, the other month when the year indicator changes on number plates. However the pleasure of showing off a new registration often comes at a high price, with owners spending over £200 million on new car finance.

Car showroom finance is typically four to five percent higher than the best interest rates available from other loan providers. However a spokesperson from the motoring organisation The AA commented "Showrooms have been forced to become more competitive and there are many zero per cent credit offers available. Remember that finance taken out with the dealership from whom you purchased the vehicle, means you will maintain a closer relationship with the showroom, which could be useful for future maintenance costs.

There is also a wealth of other financing options available for the motorist. Most dealerships will offer personal contract payment (PCP) terms and / or hire purchase (see below). For further information and guidance you can visit the website of the Finance and Vehicle Leasing Association: www.financingyourcar.org.uk.

Personal Contract Purchase (PCP) is a method of funding where an individual leases a vehicle for a set period at a fixed monthly charge.

Hire Purchase is the traditional method of financing a vehicle with the vehicle becoming the property of the lessee at the end of the period. The monthly payment is determined by the amount of deposit paid, the period of the contract and the sale price of the vehicle.

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