3 September 2008
More than one in four motorists intending to purchase a new car over the next six months will use a personal loan to fund it, new research shows. According to Sainsbury's Finance, 27% of those buying a vehicle between now and March next year will finance some or all of the purchase through this form of credit. This means that 18.4% of all the money spent on new vehicles over the period will come from personal loans, the research shows. Sainsbury's Finance's latest Car Buying Index reveals that 6.85 million people plan to buy a new car over the next six months, spending a total of £49.6 billion. Steven Baillie, Head of Loans at the company, said motorists are willing to pay around £300 more for a car than they were six months ago. Research by uSwitch.com shows that rates on best buy personal loans have increased by around 1.3 per cent in just over a year.