23% considering a new car
The latest figures from the Sainsbury’s Bank car buying index suggest that more than one in five adults (23%) in Britain are currently thinking about buying a car over the next six months, the same rate as six months ago.
Among those people intending to buy a car over the next six months, the average amount each individual anticipates spending is £10,290, slightly lower (nine per cent) than six months ago when the average was £11,249.
The research reveals that consumers are increasingly choosing a loan or other finance to pay for a vehicle, with 42% of car buyers intending to use some form of finance, a two percentage point increase on six months ago.
Among borrowers, 32% of second hand car buyers are more likely to consider a personal loan, compared to 20% of people considering buying a brand new car.
Simon Ranson, head of banking at Sainsbury’s Bank, said, ‘The number of people who are planning to buy, and the amount of money they propose spending, looks pretty steady compared to six months ago. It is certainly a great time to buy for those planning to use a loan and we are offering some of the lowest personal loan rates we’ve ever offered.’
He added, ‘A personal loan can offer the flexibility of being a ‘cash buyer’ as well as providing confidence around the known monthly repayment schedule.’