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Unsecured loans fund car purchases for one in four

Unsecured loans fund car purchases for one in four

Category: Loans

Updated: 04/03/2009
First Published: 04/03/2009

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 It is now over 6 months old so the content may be out of date.

Nearly a quarter of people who are planning to buy a car over the next six months intend to fund part of their purchase through unsecured loans, it has been revealed.

According to a study by Sainsbury's, this form of finance will account for almost 15 per cent of all spending.

But the research found that this equates to around £6.2 billion, more than £2.9 billion less than six months ago as the number of consumers planning to buy a car has dropped significantly.

This statistic was shown to be at its lowest level in four years, with head of loans at Sainsbury's Finance Steven Bailie noting that anticipated spending has dropped 39 per cent from its high in September 2006.

"Our latest car buying index ... sees a real dip in both the number of people who intend to buy a car and also in the amount of money they are intending to spend," he remarked.

Last month AA Personal Loans found that those making a car purchase are getting better value for money in the current climate.

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