Car buying drives loan demand

 

CAR BUYING DRIVES LOAN DEMAND
Article date: 28/09/2005 : 11:32:35

About £58.5 billion ponds will be spent on cars in the next six months with a quarter of purchasers planning to take out a loan to fund their new wheels.

The Sainsbury's Bank Car Buying Index indicates a sharp upturn in vehicle purchasing. It found that 7.3 million people intend to buy a car between October 2005 and March 2006, compared with the 5.4 million people who planned to buy a vehicle in the period February to July 2005.

Sainsbury’s Bank loans manager Rachel Brereton 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. "

And she urged people who were planning to take out a loan to shop around for the best deal stating: "If you shop around for a competitive loan rate you could save thousands of pounds in repayments."

The index also found that of the expectant car buyers 5.1 million people were looking to buy a second hand car while 2.2 million planned to buy new.
 
 
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