29 September 2005
People are increasingly using personal loans in order to buy a new car because it's cheaper than taking the finance package from the vehicle supplier, a new report has said.
According to the latest findings from the Sainsbury's Bank Car Buying Index, , 7.3 million people are intending to purchase a car between October 2005 and March 2006, up from 5.4 million between February and July this year.
More than a quarter of buyers (27 per cent) say they will fund their new car purchase with a personal loan.
Rachel Brereton, loans manager, Sainsbury's Bank said: "Despite rising concerns on the cost of petrol and owning a car our research suggests a strong six months ahead for the car industry.
"We found that of the amount of money people spend on buying vehicles around 16 per cent of it will be financed through personal loans.
"If you shop around for a competitive loan rate you could save thousands of pounds in repayments.
"We offer some of the most competitive personal loan rates in the marketplace starting from just 6.5 per cent APR typical online."
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