Money News
Latest findings from the Sainsbury's Finance Car Buying Index, which tracks, on a 6-monthly basis, the number of people planning to purchase a car, indicates a decrease in the number of people set to buy a car and a drop in their expected spend on any such purchase.
The research indicates that 6.86 million people intend buying a car between March 2008 and August 2008, almost one million fewer people on the preceding 6-month period. The index also reveals that £47.5 billion will be spent on purchasing cars over the next half-year, representing a £11.1 billion decrease on the previous September 2007 to February 2008 figures.
Steven Baillie, Head of Loans, Sainsbury's Finance said: "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. Indeed, our research indicates that the overall cost of motoring, everything from servicing to insurance and fuel, has increased by 10% in the last 3 years."
Latest figures show that 30% of people who intend buying a vehicle over the next 6 months will finance at least some of their purchase through a loan. The findings also suggest that of the total amount of money being spent on buying vehicles, around 18.2% will be via personal loans, which equates to around £8.67 billion, down by some £2.13 billion on 6 months ago.
The bank's research also shows that 4.91 million people will be looking to buy a second-hand car, slightly down on the previous 6 month's figure of 5.35 million, whilst the 1.55 million people planning to buy a brand new motor is down by more than half a million on the previous six months. Over 1.5 million anticipate spending more than £10,000 on a car, while around half a million say they plan to spend more than £21,000.
Looking at Britain as a whole, the East Midlands is set to see the biggest rise in the number of people buying a car with an increase of 7 percentage points on the previous 6 months.
The South East continues to see the highest amount of spending on cars, with an anticipated £13.6 billion to be shelled out, up by £800,000 on the previous half-year figure. This is followed by Greater London and the North West, where people are expected to spend £6.8 billion and £6.0 billion respectively.
04 March 2008 © Moneyextra.com
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