The number of personal loans taken out by consumers in the UK has soared since the car scrappage scheme was introduced. Many could be using the loans for vehicle finance . The data was provided by personal loans company Sainsburys Finance .

Before the motor scrappage scheme, average monthly loans were around 44.7 million pounds. After May this shot up to 61.2 million pounds. The average loan is for over 7,500 pounds.

The head of loans at Sainsbury’s Finance, Steven Bailie, claimed that the vehicle finance market is waking up. He reportedly commented: People considering buying a car, however, must remember to shop around for the best-value loan they can find if this is how they decide to fund their vehicle - it can make a big difference to their repayments.