A quarter of drivers paying for their car through a finance deal don’t understand the finance options available, new research has revealed.

The RAC study found that 25 percent of UK motorists didn’t fully comprehend their finance options they signed up for their deals, with the same proportion claiming that the dealer is more in control of the deal than the customer.

As a result, almost three-quarters (72 percent) of UK motorists simply take the first finance option recommended by their dealer, leaving 30 percent of the 400 drivers surveyed feeling as though they had little or no control over the size of their deposit, monthly payments or final payment.

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Perhaps it’s no surprise, therefore, that one in 10 said they did not feel in complete control of their payments, while 12 percent of those struggling to keep up with repayments have felt the need to hand the car back early.

RAC spokesman Alastair Crossley said: ‘It’s easy to see the appeal of driving away a new car by paying a low deposit with low monthly payments, and this is something that’s used by car dealers across the country to encourage us to part with our hard-earned cash. But our research suggests just how in control dealers and car finance companies are when it comes to deciding how much buyers end up spending – and that is a worry.

'Let’s face it – a car is one of the single biggest financial commitments we can make and we should, in theory, enter any financial agreement armed with the right information and the confidence to challenge a poor deal when we see one. But our research suggests that it is actually the dealer or finance company that is really running the show.’