Friday, November 14, 2008
Category:
Secured Loans
Research recently conducted by Sainsbury’s Finance has revealed that over £25 billion will be spent on second hand cars in the six months leading up to the end of February next year. 5.1 million people plan to spend an average on £5,005 each.
The collective amount being spent on second hand cars in the next six months has increased by 12% compared to that spent between March and August 2008. Commenting on the research, Steven Baillie, Sainsbury’s Loans Manager said:
"Our research suggests that in the current difficult economic climate, those looking for a car are increasingly turning to the second hand car market as opposed to purchasing a brand new model.
"Whilst it can be significantly cheaper to purchase a second hand car, people should still be prepared to look for ways to reduce their costs even further. One way to do this is by shopping around for a competitive rate if they are looking to finance their purchase through a loan, and also be prepared to haggle with the seller over the price they pay. Unfortunately, our research shows that almost half (43%) of people planning to buy a second-hand car won't haggle or will only do so slightly."
According to the Sainsbury’s Finance research, the largest percentage of the adult population planning to purchase a second hand car is in East Anglia, where 23% are intending to buy a second hand car in the next 6 months. Greater London and the South East follow this with 14% and 13% respectively. Additional findings from the research conducted by Sainsbury’s Finance show that 15% of the cost of second hand cars bought in the next 6 months will be covered with a loan.
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If you do plan on purchasing a second hand car, make sure you ask the necessary questions and do your research first. Also, make sure you take along a friend or family member who knows their fair share about cars. Second hand cars may be a necessity for parents who have a growing family and need a bigger vehicle to get themselves and their children from A to B. Sometimes an additional car becomes a requirement if one parent has to do the school run whilst the other gets on their way to work. Even though buying a second hand car can be significantly cheaper than buying a brand new model, you should investigate your finance options thoroughly before committing to a purchase.
