With new car registrations out this month, consumers may be considering trading in their old cars and buying something brand new. For those driving an old banger, they may even be thinking of taking advantage of the government's car scrappage scheme. But with the credit crunch biting into many people's finances, Nationwide Building Society advises to make sure to get the best deal possible to finance their purchase. So it is important to shop around, not just for a car, but for the best way to finance it.

Nationwide Building Society currently has the lowest personal loans rate on the market. If consumers have a Nationwide FlexAccount they could benefit from the Society's market leading rate of 7.7% APR typical on loans of between pounds Sterling 5,000 and pounds Sterling 14,999. This typical rate beats the supermarkets and all the high street banks - the same low rate applies whether the loan is taken out through a branch, over the telephone or via the internet.

If consumers need to borrow money to buy their new car, a personal loan could be the cheapest option. The finance packages offered by dealers may look appealing, especially if there is a 0% deal. But Nationwide Building Society advises to make sure consumers know what they are letting themselves in for. A special offer of 0% finance for the first year that then moves onto a higher rate for the rest of the term of the loan may well prove more expensive in the long run.

However people finance their car, Nationwide Building Society recommends they are clear what their monthly payments will be and what the total amount payable will be over the term of the loan. And most important of all, to make sure consumers are not borrowing more than they can afford.