Monday, September 28, 2009
Category:
Consolidation
Sainsbury’s Finance have revealed that the number of people who plan to purchase a new vehicle in the next six months has hit a seven year low.
Almost a quarter of those who are planning to buy a new car intend to partly finance their purchase with a loan. The findings are from the Sainsbury’s Finance Car Buying Index and this tracks the volume of people who plan to buy cars every six months. The number has reached its lowest point since March 2003 when the bank first launched the index.
September 2006 saw the peak of consumers intending to purchase a car. In the next six months, 5.14 million individuals plan to purchase a car – this is 1.19 million less that the previous six months. According to the Sainsbury’s Finance Car Buying Index, expected spend on new vehicles has also fallen to all time rock bottom. £39.0 billion is anticipated and this is a £3.3 billion drop on the previous six months’ expected spend.
As brand new car sales have declined, the value of second hand cars has gone up. Second hand vehicles have become more popular as buyers want to save money.
Steven Baillie, Head of Loans, Sainsbury's Finance said: "Our latest car buying index, which has been running now for seven years, reveals an all-time low in both the number of people who intend to buy a car and also in the amount of money they are intending to spend. For the first time since launching the index, we see the anticipated spend on new cars over the next half-year drop to under £40 billion.
"However, we hope to see the number of people looking to buy a car start to increase again in six months time, the car industry is beginning to report a growing demand for second-hand cars in particular. This demand seems to in turn have led to an increase in the value of second-hand cars so many people could be pleasantly surprised at how much they might get for their current vehicle when they come to upgrade it for a newer version."
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Homeowners who are looking for finance to buy a new vehicle, whether it be a people mover to accommodate a growing family, or a smaller more economical model, could consider a secured loan. A secured loan is one of many options to fund new or second hand car purchase. If space to park the new vehicle is an issue, and the property allows, homeowners might consider some small home improvements which could be made with a secured loan such as repaving the space at the front of their property to create additional parking.
