Personal loans get carbuyer boost

08 Dec. 2009

The personal loan sector is to be boosted by the continuing strength of customer demand for cars, a provider has said.

According to Sainsbury's Finance, around 8% of UK adults, or 3.7 million people, have either bought or are planning to buy a used car over the six months to February 2010.

Around £5,323 per vehicle will be spent on each of these purchases, with 13% of total costs being met via personal loan finance.

Sainsbury's also pointed out that the government's car scrappage scheme, through which customers can swap their old cars for a new vehicle in exchange for £2,000, has impacted on loan demand.

According to the firm's own figures, the typical value of car purchase loans has increased by 37% since the introduction of the scheme earlier this year.

Steven Baillie, head of Sainsbury's Loans, said: "It can of course be significantly cheaper to buy a second-hand car but buyers and sellers could save even more money if they do their homework.

"Sellers should for example ensure they understand the car's value in relation to the market so that they get the best deal - valuation calculators can be found online."

Demand for second-hand vehicles was revealed to be highest in Scotland, where 15% of adults will make the purchases over the six-month period.

News Source:
http://www.compareandsave.com