The British are set to spend billions on new cars over the next six months, and cheap personal loans could be the best way of financing this.
London – March 30, 2007: Latest figures from Sainsbury’s Bank show that 7.65 million people in the UK intend to buy a car between March 2007 and August this year, and 26% of them plan to fund part of this purchase with a cheap loan.
Steven Baillie, Sainsbury’s Bank loans manager said, "Our findings estimate that of the total amount of money that will be spent on buying vehicles, around 15.8 per cent will be financed through personal loans, which equates to around £8.41 billion.”
He further said, “Although this represents a 33 per cent drop in the total planned for car purchase loans, it's actually more important than ever for people to shop around due to heightened competition in the market”.
The Sainsbury's Bank survey shows that 430,000 fewer people are planning to buy a car in the next six months than in the last six months, spending £16.2 billion less.
Mr Baillie said, "For the first time in two years, we have seen a fall in the total anticipated spend on new cars. Over the past four years since we started the car buying index, we’ve seen occasional dips in planned spend on cars, but this fall by £16.2 billion represents by far the biggest drop we’ve witnessed to date.”
He added, "It is difficult to say exactly what is fuelling the decrease in anticipated spends on new cars and it could be a mixture of factors, including concerns about interest rates and environmental anxieties."
Some industry experts are of the view that people should avoid taking dealer finance. Though many car dealers offer car loans, their proposals are usually more costly and restrictive than those offered by a bank or a credit company.
Their advice to loan seekers is that they should cross-check their the account statements for errors, as incorrect application can be costly, and stay focused on the goal of getting the cheapest possible deal.
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry.
He has done her masters in Business Administration and is currently assisting Chance4finance as a finance specialist. To find a
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