Money News
Planned spending on cars has plummeted to its lowest point for 2 years and has dropped by an average of £976 within just 6 months, according to new figures from AA Personal Loans' 'Deal on Wheels' report.
Not only are there 5% fewer people planning to buy a car in the year ahead, compared to this time last year (20% vs. 25%), but the research shows that those who do plan to buy will spend less. Six months ago buyers intended to spend an average of £9,827 on a car, compared with just £8,851 today.
Perhaps in an attempt to not overspend, the number of people buying second-hand cars under 3 years old has risen by 25% (from 36% to 45%) in the last 6 months.
Although men remain the most likely to buy a car in the year ahead, 15% fewer say they plan to buy a new car compared to 6 months ago. However, the number of men opting to buy second-hand has risen by a third (from 37% to 48%).
Women remain just as likely to buy a new car (31%), but 24% more plan to buy a second hand-vehicle under 3 years old (42% compared to 34% 6 months ago).
Meanwhile, more Scots are planning to buy a car in the year ahead than the rest of the UK, with 28% expecting to change their vehicle, compared to just 17% in the south and 17% in the Midlands and Wales.
Mark Huggins of AA Personal Loans makes the point that faced with rising costs including fuel, car buyers seem to be shopping around for a more economical way of buying a reliable car. "A third of buyers finance their car purchase with a loan, so it's important they shop around for the best loan rate, too," says Huggins.
14 February 2008 © Moneyextra.com
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