Nine in 10 UK adults struggle to understand car finance options available on the market, new research from Zopa has found.

In a survey of 2,000 consumers, 47% of people who had recently bought a car with finance are unable to identify which type of finance deal they signed up for. Zopa estimates that the average car buyer could save up to £11,000 over the course of their lifetime by working out the best finance deal available.

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The survey also revealed that two thirds of consumers have accepted the first car finance deal offered to them at a dealership, without shopping around for a better deal. A further 48% of people taking out car finance at a dealership admitted to finding the whole process stressful.

One in five respondents said they struggle to understand the language used, while 16% said they do not understand the finance options explained to them.

Additional research from Zopa found that 26% of car-buyers had accepted a higher APR on a car finance deal than they thought they could afford, with half of those people using it to buy the car of their dreams. A further 26% had done so when they needed a car urgently.

“Buying a car is a major financial decision, yet it is so complex it’s nearly impossible for people to work out the best finance option,” said Didier Baclin, Zopa’s chief product officer.

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“In the wake of the FCA’s report into the car finance market, Zopa wants to provide a better alternative for people looking to buy a car, doing away with the complex finance deals and baffling jargon. Our aim is to help create a fairer and more transparent car market so that people can take out car finance knowing what they’re signing up for and whether its right for them.”