Consumers 'are using loans to keep car buying costs down'
Published On 14 February 2008
Consumers are increasingly looking to purchase cheaper cars and many are using personal loans to finance the deal, a new study has shown.Research from AA Personal Loans showed that the typical amount a person plans to spend on a new motor has dropped by an average of £976 over the last six months.
As a result, more people are now planning on purchasing a second-hand car rather than a new vehicle.
In a bid to get the cheapest deal, a third of consumers said they would use a personal loan to finance their new set of wheels.
"Faced with rising costs including fuel: for example the cost of unleaded petrol is now 102.8p per litre compared with 87.5p this time last year, car buyers seem to be shopping around for a more economical way of buying a reliable car," explained Mark Huggins, head of AA Personal Loans.
"A third of buyers finance their car purchase with a loan, so it's important they shop around for the best loan rate, too."
Recent figures from uSwitch.com showed that consumers could save £1,094 each by opting for a personal loan over a traditional car finance deal when buying a new motor.
