Friday, July 3, 2009
Category:
Secured Loans
Research by Sainsbury’s Finance has revealed that 10 percent of UK adults are intending to purchase a second-hand car in the 6 months up to the end of August 2009.
This equates to 4.5 million Brits, and with each of these individuals planning to spend an average sum of £4,487, the total outlay stands at £20.06 billion.
This figure has been recorded as representing a 21 percent decrease on the previous six month period of £25.5 billion and a 12 percent decrease in the number of prospective second-hand car buyers. Therefore the second-hand car market would appear to be seeing less buyers and with less money to hand.
Sainsbury’s Finance is advising people to ensure that they look into their car’s value prior to putting it up for sale. It is important to gain an appreciation of what the car is worth before engaging in negotiations, especially at a time when people are tending to be more pennywise.
Head of Sainsbury's Loans, Steven Baillie, commented: "Sellers need to make sure they know the market value of a vehicle to ensure they get a good deal for their existing car. Our findings show the amount people anticipate spending on second-hand cars is significantly less compared with six months ago, which may be a knock-on effect of people's growing financial uncertainty.
"Sellers should have an accurate price in mind based on the car's market value which includes taking into account the mileage, wear and tear and any extras or special edition components. While too high a price will put potential buyers off a low price may also make them wary.
"It's important buyers remember to haggle when negotiating any car purchase, as haggling can save the buyer hundreds or evens thousands of pounds. Despite this our findings show that nearly half of people who are intending to buy a second-hand car in the next six months say they do not plan to haggle or they may only haggle slightly. Homework is key to confidence here; if you know what you should be paying you'll be able to haggle more effectively."
In terms of a regional divide, it would seem that the greatest number of potential second-hand car buyers reside in Wales at 16 percent, with the West Midlands in second place at 14 percent. In contrast, East Anglia is home to the least number of people planning to buy a second-hand car at 4 percent.
The research also revealed that approximately 15 percent of the second-hand cars bought during the coming six months will be funded by loans. As a result, Sainsbury’s Finance has recommended that car buyers search the market for good rates and finance options.
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Homeowners that are currently investigating finance options in preparation for purchasing a second-hand, or indeed new, car could consider taking out a
secured loan. A secured loan, one of many options to cover the cost of a car, could facilitate the purchase of that dream car, whilst also offering the possibility of consolidating any existing credit cards and / or personal loans. With a secured loan, juggling multiple debts each month could be a thing of the past – leaving the borrower with just one, potentially lower, monthly repayment. However, when using a secured loan to consolidate debt, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
