The number of
UK
car buyers is set to decrease, according to new research from
Sainsburys
Finance has found.
The company’s
Car Buying Index has revealed that one million fewer people are
likely to purchase a car between March 2008 and August 2008,
compared to the level of car
transactions in the previous 6-month period.
The popularity of
personal loans as an option for
car finance is expected to increase over the next six months,
although industry experts believe the lack of
credit in the UK
money markets is making it difficult for
borrowers to manage personal
loans for their day-to-day activities.
According to the research, roughly 6.86 million Brits intend to
buy a car during the next six months, 30 per cent of whom will
use a
loan to help finance at least some of their purchase.
In addition, the research also found that personal loans will make
up an estimated 18.2 per cent of the spending on purchasing
vehicles, which equates to around £8.67bn – a decrease of
some £2.13bn on the previous six month period.
Steven Baillie, Head of Loans at
Sainsbury's Finance, commented: It is difficult to
pinpoint exactly what is behind this decrease and could be due to a
mixture of factors such as concerns around much-publicised economic
pressures or environmental anxieties.
