An investigation into finance in the automotive sector has slammed used car dealers for a “£1.4 billion a year rip-off” after comparing the deals offered by 100 retailers across the UK.
The Daily Mail teamed up with Confused.com for the investigation which is sure to heap further pressure onto the finance sector after the FCA announced that it would be launching an investigation into “irresponsible” loans for cars in its 2017/18 Business Plan.
Data gathered by the loans comparison site found that the average car finance interest rate offered at dealerships is 9.4%, compared to a 3.2% best price widely available online.
Some 2.3million cars were bought on finance last year, and Confused.com projected the additional cost to motorists as a result of the inconsistency could be up to £1.4billion a year.
The Daily Mail has also identified that motorists with poor credit records were being lured by online brokers offering high interest loans to buy cars.
One firm highlighted by the newspaper, MidlandCredit.co.uk, stated that even those with bad records should be able to ‘buy any car you want’ with an offer provided within the hour and a typical rate of 36.99% over three years.
The Daily Mail kept the subjects of its investigation, in partnership with Confused.com, anonymous but said that many of those included were “big name independent firms and companies approved by car manufacturers”.