Recent figures reveal that UK consumers borrowed nearly £10 billion in June, the biggest jump ever and a record 14% rise on the previous year. However, Singer & Friedlander Finance is urging consumers to be careful before committing themselves to long-term finance agreements.

"Consumers need to think ahead when it comes to buying a new vehicle and financing it," explains Miles Roberts, Director of Sales and Marketing, Singer & Friedlander Finance Ltd. "With current interest rates remaining so low it is all too easy to sign-up for an agreement which takes care of the initial purchase price of the car. But we all know that a car is an ongoing expense and additional costs will also need to be budgeted for, along with the finance repayments.

"Individuals should think carefully about the running costs of car ownership. For example, can they afford the ongoing cost of insurance, fuel and servicing, as these will all have an effect on the type of vehicle they can buy. It is also wise to take depreciation into account and avoid an excessively long-term finance deal.”