Motorists lured into finance deals that are £5,600 cheaper than buying cars outright

This compares to an average saving of £2,881, or 8 per cent, offered to motorists who choose to buy with cash.

Nissan was found to be the brand that offered the biggest discount in terms of percentage, slashing prices by 14.04 per cent or £3,346.IT'S important to go into any contract with full knowledge of what you’re signing up to.In most contracts where you don’t own the car outright there will be a mileage limit – often 10,000 but lower on smaller models. If you’re doing a lot of commuting it’s easy to breach these and end of contract excess charges are steep.

There are a number of different ways to purchase a car on finance, including personal contract purchase and hire purchase .

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