Car Buyers Decisions Affected By Lack Of Credit

Wed, 19 Mar 2008



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."
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