Quarter of car buyers 'relying on cheap loans'
Over a quarter of people planning to buy a new car in the near future intend to use a personal loan to fund their purchase, new research shows.
According to a survey by Sainsbury's Finance, some 6.85 million consumers expect to buy a car between now and next March, spending a total of £49.6 billion.Of these, 27 per cent said they would finance some or all of their vehicle purchase through a personal loan.
The research shows that 18.4 per cent of the money spent on new cars over the next six months will come from cheap loans, equating to around £9.14 billion.
Recent research from uSwitch.com revealed that rates on personal loans have increased by around 1.3 per cent over the last year.
With this in mind, those using credit could be wise to compare loans in order to secure the best deal available.
Steven Baillie, head of loans at Sainsbury's Finance, said that despite the credit crunch, car buyers are willing to spend an average of £300 more on a vehicle this year than they were six months ago.
© Copyright
Related Articles
- Lending market experiences quiet 2009, according to BBA loan information figures - 23rd February, 2010
Demand for new personal loans receded throughout 2009 as a result of the economic downturn, new loan information figures have suggested.
Indeed, the majority of lenders found that consumers were focusing on making repayments rather than accruing more debts... - Moneyfacts.co.uk's latest loan information shows personal rates have struck recent high - 1st February, 2010
An independent provider of loan information has revealed that personal loan rates have reached a nine-year high.
Moneyfacts.co.uk has claimed that uncertainty surrounding debt repayments has caused unsecured personal loans to witness some of the steepest increases in the lending market... - Loan information research reveals negative effect of money woes - 22nd February, 2010
Many Britons believe that personal finance problems have had a negative effect on their health and personal lives, new loan information figures have suggested.
According to Research conducted by GE Money Home Lending, 45 per cent of adults think their health and relationships suffered as a consequence of their poor financial situation... - Policy Exchange's loan information report tells parents to provide collateral for student loans - 11th February, 2010
A report regarding university funding has concluded that middle-class parents should be forced to put up their houses as collateral against their children's student loans.
Policy Exchange, the think-tank which released the loan information advice, has also suggested an interest-charging private loans scheme for wealthy students which would be repaid once they left higher education... - Loan information numbers reveal stamp duty's influence on mortgages - 16th February, 2010
A rush to secure mortgage deals before the end of the stamp duty holiday boosted lending in the last month of 2009, new loan information figures have revealed.
According to the Council of Mortgage Lenders (CML), the number of loans to first-time buyers was at its highest for two years... - Loan information adviser issues warning to consumers - 2nd February, 2010
A loan information expert has advised consumers to complete loan applications by providing as much detail as possible, the Independent reports.
Kate Murphy of loan information website moneysupermarket.com, explained that lenders could decline a loan application on the strength of discrepancies in the paperwork... - Loan information firm Which? backs lenders in policy debate - 8th February, 2010
A company which offers loan information has claimed that the current application process is unfair to lenders, the Times reports.
It has been revealed that the details of millions of mortgages, bank accounts and credit cards taken out before the millennium do not appear on credit reports and, consequently, consumers with bad credit records are still able to acquire a loan... - Moneysupermarket.com's loan information figures reveal overdraft crisis - 25th February, 2010
New loan information figures have revealed that five million adults in Britain are permanently in their overdraft.
According to moneysupermarket.com, ten per cent of the British adult population are always in the red with their banks... - Western Credit Union offer best rates for car loan customers - 19th February, 2010
Approaching Westport Credit Union for a cheap loan for a vehicle may be the best bet for motorists looking for the most prudent financial deal, research has revealed.
The Irish Independent looked into the car loan rates of 50 credit unions and five leading banks as part of a study and discovered that going with the former provided drivers with the best deal... - Daily Mail loan information numbers show expense of short-term deals - 10th February, 2010
An investigation by the Daily Mail has discovered that state-supported banks are charging more for short-term borrowing than back-street lenders and payday loan companies.
The newspaper's loan information figures revealed that a consumer who exceeds their overdraft for ten days prior to being paid could face fees and interest equivalent to more than 3,000 per cent a year...