Wednesday, November 8, 2006
Category:
Secured Loans
According to research conducted by the Sainsbury’s Bank Car Buying Index there has been a significant rise in the number of people intending to buy a car between September 2006 and February 2007.
A staggering £69.4 billion will be spent on purchasing cars within the next 6 months, £6 billion more than in the previous index taken by the Sainsbury’s Bank Car Buying Index.
Steven Baillie, Loans Manager, Sainsbury’s Bank said, “We found that almost a third (29%) of people who intend to buy a vehicle over the next six months will finance at least some of their purchase through a loan. Indeed our findings estimate that of the total amount of money that will be spent on buying vehicles, around 18% will be financed through personal loans. This figure equated 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. Our findings show that there are more people than ever before who are planning to buy both brand new and second hand cars, which spells good news for the automotive industry.”
Figures show the number of people planning to buy a second hand car, 5.17 million, is greater when compared with the 2.45 million who plan to invest in a brand new one. Those in the North East are set to see the biggest rise in the number of people buying a car, a 7% increase on previous months, whilst those in the South East continue to be the biggest spenders, with an expected £18.5bn to be spent on new cars. Research shows that over 2 ½ million people plan to spend more than £10,000 on a car whilst only 799,000 people were looking to spend over £21,000.
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By consolidating all existing debt into one straightforward monthly payment, homeowners could free funds to spend on other purchases. By taking out a secured loan, homeowners can usually make repayments over a term to suit them. Taking out a loan to finance the purchase of a vehicle could also help with those hidden extras, like MOT and insurance or even enable you to get a better model of vehicle.
