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Car buyers 'should shop around' for unsecured loan

Car buyers 'should shop around' for unsecured loan

Category: Loans

Updated: 12/11/2008
First Published: 12/11/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Car owners have been advised that they can save money by shopping around for unsecured loans.

Sainsbury's Finance issued the advice after it found that the number of people planning to purchase a second-hand vehicle is increasing, as these can be cheaper than new cars.

More than five million respondents said they would be choosing such an option in the six months up to the end of February 2009.

And with each intending to spend an average of £5,000, the figure represents a 12 per cent increase on the previous six months.

Steven Baillie, loans manager at Sainsbury's, noted that a second-hand car is often much cheaper but added: "People should still be prepared to look for ways to reduce their costs even further. One way to do this is by shopping around for a competitive rate."

This week research firm Defaqto suggested that interest rates may fall as low as zero per cent next year, which could make unsecured loans cheaper.

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