Carbuyers Boosting Demand For Personal Loans

Wed, 09 Dec 2009

Increasing demand for used cars will help boost Britain’s personal loan sector, according to Sainsburys Finance .

The finance provider said around 8 per cent of UK adults (3.7 million people) had either bought or were planning to buy a used car in the six months to February 2010.

According to the group, car buyers will spend an average of £5,323 per vehicle and 13 per cent of the cost will be covered by personal loan finance .

It also revealed that the government's vehicle scrappage scheme, which allows motorists to trade in their old car in exchange for a £2,000 discount off the price of a new vehicle, has helped increase loan demand.

Furthermore, it’s figures show that the typical value of loans for car purchases has increased by 37 per cent since the scheme was introduced in May.

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."
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