22 February 2008
New research by the Halifax has shown that when it comes to financing their next car, nearly one in five respondents (18%) said they would use a bank loan.
The study by Halifax Unsecured Personal Loans found that many have the cash saved up with 59% saying they would use funds from either their current or savings account.
Of those that said they would borrow money to fund their new car purchase, one in five (20%) said they would borrow more to help pay for other expenses such as tax and insurance.
Neil Chandler, Head of Halifax Unsecured Personal Loans, said: "Whatever your reason for taking an unsecured personal loan, with Halifax you'll have no monthly repayments for the first three months.
"If you're buying a car, this will allow you to pay for other things such as road tax, MOT or car insurance."
The research also showed that more than half of those surveyed (57%) said they would usually buy a used car compared with just 24% who said they tend to buy new - Halifax said this was probably due to the depreciation involved in buying a new car.