Car finance deals to increase in next 6 months
Published On 13 October 2006
The number of people taking out a loan to finance the purchase of a car is expected to rise significantly over the coming months.A study by Sainsbury's Bank claims that 29 per cent of people who are set to buy a car over the next six months intend to finance the deal with a loan.
Some 8.08 million people in the UK are planning to buy a car between September 2006 and February 2007, a rise of 230,000 from the previous six-month period.
The figures indicate that lenders can expect to see an upsurge in business while car dealers will be doing all they can to entice buyers to opt for their own finance packages.
"Given this growing trend for car purchases to be funded by loans, motorists must make sure that they shop around for a competitive rate as they could save hundreds or even thousands of pounds in repayments," said the bank's loans manager, Steven Baillie.
Car insurance premiums for young drivers rose by 4.62 per cent in the third quarter, according to AA Insurance.
