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Product category: Banking / credit / debt
News Release from: Alliance & Leicester | Subject: Banking
Edited by the Insidemoneytalk Editorial Team on 14 March 2007

Wasteful motorists missing the
opportunity to save the environment and
their money

With a 'green' Budget expected from Gordon Brown later this month, research from Alliance and Leicester Personal Loans reveals that motorists are missing an opportunity to save the environment.

Despite an expected increase in taxes on 'gas-guzzlers' and environment-busting vehicles, only 2% of motorists are planning their next car to be an environmentally friendly 'hybrid' - a combination of a traditional petrol engine which also has the capability for clean electric motoring - and only 3% of motorists will choose their next car on the basis of its 'green credentials' or low emissions It is also apparent that while motorists are not looking for cars with 'green credentials' and taking advantage of any tax-breaks that may be on the horizon, millions of motorists could also be wasting over £3,000 by taking out expensive finance from a car dealership, many of which have interest rates well into double figures

The research found that almost six in ten (58%) of those who do not use savings to purchase a car borrow money from lenders who are not known for offering the best loans on the market - car dealers and big-name high street banks.

One quarter (26%) of those who borrow money to buy a car would do so from car dealers, and a further quarter (26%) would tend to borrow money from a big high street bank.

Richard Al-Dabbagh, Senior Loans Manager at Alliance and Leicester, commented: "Despite all the newspaper headlines telling us that global warming is about to reach crisis point, and speculation that environmentally unfriendly cars will bear the brunt of imminent tax hikes, people are still shunning the most environmentally friendly cars.

"It is also apparent that we are wasteful when choosing how to finance our new motor.

Over half of those who borrow money to buy their car use finance that is clearly not the best deal on the market.

Some car finance deals are well into double figures, and should be given a wide berth.

With pricey finance being sold to you where you can find yourself overpaying by over £3,000 or more, it is worth spending ten minutes looking around for a good deal before heading into the dealership." The research also found: One quarter (23%) of motorists choose their new car based on reliability Three per cent of motorists expect to buy a 4x4 as their next car 46% of motorists take finance from the car dealer because they believe it is the quickest and easiest way One in four (26%) believe car dealers offer the most competitive deal For consumers considering applying for a loan or switching provider, Alliance and Leicester's website, www.alliance-leicester.co.uk, provides access to useful tools to help guide them through their financial choices.

The website has been awarded a Gold Award for Best Overall Site in the banking category (Blays Net Ranking Web Site Awards) and was particularly commended for its content and ease of use.

The site contains a Loan Calculator which lets people work out how much they can afford to borrow and decide how long they wish to spread their repayments for.

Alliance and Leicester personal loan customers can benefit from the following: An unsecured personal loan from as little as £1,000 to as much as £20,000 A low typical APR of 6.3% for loans of £7,500 - £20,000 for telephone and Internet applications, and in branch for Premier current account customers Repayment over one to five years Fixed monthly repayments for the period of the loan Quick and easy application, online, via the phone or in branch No arrangement fees Optional loan protection for added peace of mind For further information, consumers should visit their local branch, call 0800 068 6611 or visit www.alliance-leicester.co.uk.

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