Personal loans shunned by majority of used car buyers, survey suggests

Financial Services > Personal Loans > News

Wed, 09 May 2007

Approximately five-sixths of used cars bought in the UK before the end of August 2007 will not be financed by personal loans, according to new research.

Results of a survey from financial services provider Sainsbury's Bank indicates that personal loans will help pay for 17 per cent of second-hand car purchases, in spite of the fact that forecourt finance deals typically feature higher lending rates.

Meanwhile, prospective car buyers are apparently planning to spend an average of Ł4,056 on a used motor over the next few months, down from Ł5,018 in the previous term.

Noting the fall, Steven Baillie, loans manager at Sainsbury's, urged people to remember the potential financing benefits of haggling with car dealers.

"People are anticipating spending less on their second-hand car purchase compared with six months ago, so it's important that they remember to haggle when negotiating any car purchase to secure the best deal," he advised.

Earlier this week, market intelligence provider Experian's automotive division conducted a separate study into trends in the used car market.

It discovered that demand for multi-purpose vehicles increased 16 per cent in the final quarter of 2006 compared to the preceding year - a faster rate of growth than any other vehicle class.

Link to this page

Personal loans news
BBA Reveals Home Loan Dip - Mon, 26 Jul 2010
Government to Conduct Personal Loan Review - Thu, 22 Jul 2010
Positive Home Loan Trend Continues in May - Fri, 16 Jul 2010
More News