Consumers looking for car financing should be delighted at the latest skirmish in the motor loan price war. First Active last week announced its third change in car loan lending rates since the service was introduced 18 months ago. The last round of reductions by most lenders occurred in early December to appeal to new car buyers during the first quarter.
First Active's rate has been reduced to 7.90 per cent from 9.00 per cent APR for variable rate loans in excess of £5,000. This translates into a weekly repayment of £156 over three years. Variable rate customers may avail of flexible payment options including the ability to make lump-sum payments without penalty.
Only TSB and EBS offer lower variable rate loans at APRs of 7.80 per cent and 7.10 per cent respectively, according to figures provided by First Active.
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