Cash point

The number of new cars bought with dealership finance dropped 8% in November compared with the same month in 2016.

However, seven out of 10 who did opt for showroom finance simply accepted the first product recommended by a single car dealer instead of comparing deals, RAC research reveals.

Car buyers told the RAC they were confused and even intimidated.

Most didn’t have the confidence to challenge a dealer or finance firm to ensure they didn’t end up paying over the odds.

Choosing the wrong type of finance could add thousands of pounds to the cost of a set of shiny new wheels. And not understanding what you are signing up to could leave you with a hefty lump sum still to pay when a finance deal ends.

There are personal loans available at rock bottom prices of less than 3%, credit cards with 0% purchase deals and 0% finance available.

Having finance in place before you hit showrooms will put you in a stronger position to bag a better deal on the price too.