According to Sainsbury's Bank, the number of UK consumers planning to purchase a new vehicle continues to rise with £69.4 billion set to be spent on new cars in the next six months.
The bank's Car Buying Index tracks the spending habits of British consumers in relation to new cars.
The research shows that over eight million people are intending to buy a new car between September 2006 and February 2007, which is 230,000 more than the last six-monthly index covering the period from March 2006 until August 2006.
Steven Baillie, loans manager for Sainsbury's Bank, noted that his company's findings also showed nearly a third (29 per cent) of buyers intended to fund their new purchase with some kind of loan.
"Our findings estimate that of the total amount of money that will be spent on buying vehicles, around 18 per cent will be financed through personal loans.
"This figure equates to £12.49 billion in loans, which represents a £2 billion increase on the previous six months."
Mr Baillie urged consumers to shop around for the best deal on their loan, if indeed they were looking to use this form of financing, and not to simply opt for the dealers' own credit out of convenience, as it was frequently at a subprime rate.If you have a less-than-perfect credit rating but are still looking into the purchase of a new car, click here.
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