Loans used to fund new car purchase, figures show

Thu, 12 Oct 2006

Almost one in three people buying a new car plan to use loans to fund the deal, new research has revealed.

Some 29 per cent of those who plan to buy a new car in the next six months will take out a loan in order to do so, according to a study from Sainsbury's Bank.

The study also showed that £69.4 billion will be spent on new cars in the next six months.

This represents a "significant increase" in the amount which borrowers will take out in personal loans to fund car purchase, the company claims.

Steven Baillie, loans manager at Sainsbury's Bank, said: "This figure equates to £12.49 billion in loans, which represents a £2 billion increase on the previous six months.

"Given this growing trend for car purchases to be funded by loans, motorists must make sure that they shop around for a competitive rate as they could save hundreds or even thousands of pounds in repayments."

Last month, Alliance & Leicester stated that personal loans could be cheaper than forecourt finance for those purchasing a new car.


add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Credit Crunch Savers
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Virgin Credit Card
0% APR on balance transfers for 16 months
Tesco Insurance Sale
50% discount on car and home insurance.
Offer ends 7th Jan 09
Post Office Instant Saver
Protect your savings with the Post Office saver

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form