Brits get on the road with personal loans, study shows

Thu, 28 Jun 2007

A large number of UK consumers are taking out personal loans to fund the purchase of cars, motorbikes and caravans, new research has revealed.

A study conducted by Alliance & Leicester indicated that almost two out of every five personal loans that are taken out are used to fund purchases of this nature, with one in five paying for home improvements with the cash injection.

Additionally, one in three Britons taking out personal loans did so in order to consolidate existing debts such as credit cards, the bank's figures showed.

Of those who used their personal loans to get a new set of wheels, used cars (25 per cent), new cars (12 per cent) and motorbikes and caravans (three per cent) were revealed to be the most popular options.

Richard Al-Dabbagh, Alliance & Leicester's senior personal loans manager, said: "It seems that a lot of people are using a personal loan to buy a car, with 37 per cent of our borrowers taking out a personal loan specifically for that reason."

Some car insurance providers offer cheaper deals for motorists using more eco-friendly vehicles.


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