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Sainsbury's counts the cost of new cars

29 March 2006
Cars could cost the UK a collective £63.27 billion over the next six months if the current consumer trend continues.

And over a quarter (27 per cent) of people are expected to take out a personal loan to finance the average £8,059 it will cost them.

Sainsbury's Bank looked back over the past 18 months and compared the number of people planning to buy a car between March and August this year with previous figures.

Using a representative sample of 2031 people, the lender estimated that 7.85 million people expected to buy a car over the next six months, an increase of 550,000 from the 7.3 million at the last count.

The majority of these, 5.29 million, will be looking for a second hand car, but 2.27 million still expect to spend over £10,000 on their set of wheels.

Steve Baillie, loans manager at Sainsbury's said that around 17 per cent of the total to be spent on cars could take the form of personal loans, which is 16 per cent more than in the previous six month period from September last year.

"Motorists should ensure they shop around for a competitive loan rate as they could save thousands of pounds in repayments," he said.

To read more about personal loans, click here.

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