The good news

* Bank of England interest rates at a low * Bank borrowing rates high, though * How do you get money to buy a car?...

29 December 2008
The good news

While the best personal loan rates have risen recently, some car manufacturer deals are coming down.

'Salesmen are putting pressure on their finance operations to do a deal so they can shift cars,' says automotive industry researcher Pat Hoy. 'Generally a car company is happier to use a car as collateral than a general loan company.'

John Bates, national sales co-ordinator for Peugeot, echoes this. 'We sell lots of small cars that are suddenly desirable, so we can lend against them with a high degree of confidence,' he says.

The best deals will still be reserved for buyers with the best credit records, though, and the wherewithal to lay down a hefty deposit will usually mean you pay less interest.