Tuesday, May 29, 2007
Category:
Secured Loans
New research conducted by Sainsbury’s Bank has found that around 5.48 million people plan to purchase a second hand car in the period between March and the end of August 2007.
The estimated intended spend on these vehicle purchases according to Sainsbury’s Bank is £4,056 each or collectively as much as £22.23 billion. Although this is a large amount, it is a 14% decrease from the amount spent in the previous six month period of September 2006 to February 2007 which was £25.92 billion. The previous average amount that people were intending to spend on a second hand car was £5,018 almost £1,000 more than today’s figure.
As people are intending to spend less on second hand vehicles, Sainsbury’s Bank urges people planning to sell their cars on the second hand market to undertake a proper valuation to ensure they are getting a good deal. One way in which car owners can do this is by taking advantage of free Valuation Tools available on their website. By entering details such as the make, model and mileage of a motorist’s car, the estimated value of a vehicle can easily be calculated.
Steven Baillie, Sainsbury’s loans manager, said: “Sellers need to make sure they know the market value of a vehicle to ensure they get a good deal when they come to sell their existing car, or indeed come to buy a new one. Our findings show that 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.
“Despite the fact that haggling can save the buyer hundreds or even thousands of pounds, many of us are reluctant to do this. Our findings reveal that over half of people who are intending to buy a second-hand car in the next six months state they do not plan to haggle or will only haggle slightly.”
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Sainsbury’s Bank has discovered that around 17% of the cost of the second-hand cars purchased over the next six months will be financed by personal loans. A personal loan, one of the many financial options available for homeowners, could not only help finance the purchase of a car but also additional costs that many motorists forget like MOT’s and car insurance. Whether homeowners choose to use their secured loan to purchase a brand new car or a second hand car, the extra finances could ensure that motorists are satisfied with their purchase. Growing families could benefit from a larger vehicle whereas couples may prefer a smaller compact car perfect for city hopping. Eco friendly motorists could use their personal loan to buy a hybrid car which combines a petrol and electric engine which benefits the environment. A personal loan is made payable over a term to suit the borrower from 5 to 25 years.
