Car Loans Update from Creditplus

Apr 8 2010 Reviewing the Bank of England debt statistics average consumer borrowing via credit cards, car loans, retail finance deals, overdrafts and personal loans has risen to £4,658 per average UK adult at the end of February 2010, not taking into account mortgage debt. The average car will cost £460 per month to run and service and the average car loan is currently £6845. Many UK customers are not taking into account protecting their car loan from a change in circumstances, such as loss of their job and also not taking into account the typical running cost of their new car purchase.

Creditplus offers full advice from the best car loan specific to your circumstances, through to service plans that spread the cost of running your car.

Current car loan rates from high street banks range from 9.9%APR to 15.1%APR for those consumers with a good credit rating, however the UK has over 14.2 million consumers who have some form of adversity on their credit files, ranging from missed credit card payments, maximum balances on credit facilities or default recordings. Prior to the 2007 credit crunch these consumers would still have been considered a good risk and many would have achieved a leading APR deal. However all lenders are now enjoying a higher rate of lending on these clients as they need to protect themselves from potential bad debt and car loan delinquency. With LIBOR rates at less than 1% key prime lenders are enjoying the best profit levels they have seen for many years, but until economic recovery grows stronger and job losses decrease lenders will continue to look for increased car loan profits and to strengthen their balance sheets.

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