Money News
| Typical APR | Per Mth | ||
|---|---|---|---|
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7.6% | £199.66 |  |
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7.7% | £200.10 | |
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7.7% | £200.10 | |
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7.7% | £200.10 | |
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8.8% | £204.99 | |
| * Based on £10000 over 5 years and is not a full search of the whole market | |||
Demand for cars will grow rapidly over the next 12 months, according to new research by AA Personal Loans. The findings show a 20% leap in the number of people who plan to purchase a vehicle in 2007, compared to 2006.
Despite now costing as much as £5,500 per annum to keep a car on the road (Source: AA Car Running Costs: Car cost new £13-20,000 driving 10,000 miles per year), the latest findings reveal that as many 25% of people intend to buy a car in 2007, compared with 20% people in 2006. The findings also reveal a year-on-year increase in demand for new and nearly new vehicles from 27% to 29% respectively in 2006, to 29% to 44% respectively in 2007 - yet a fall in demand for cars over 3 years old (28% in 2006, compared with 22% in 2007).
The AA's Deals on Wheels reports look at actual demand for new and used cars in the UK. AA Personal Loans asked a representative sample of over 2,000 Brits whether they planned to replace their vehicle in the next 12 months and, if so, what type of car would they plan to buy.
The amount of money people are prepared to spend on their vehicles has also increased since 2006. The average person was prepared to fork out £9,342 last year, compared with a planned budget of £10,136 in 2007.
Small family cars remain motorists' preferred mode of personal transport. Indeed, 24% will buy a small family motor in 2007. In contrast, demand for gas-guzzling 4x4s has fallen over the past 12 months constituting 8% of total car purchases in 2006, to just 5% in 2007.
Men continue to drive the UK's car market. As many as 29% will buy a car in 2007, compared with 20% of women (21% and 18% respectively 12 months ago).
The findings also suggest that whilst people are beginning to think more carefully about their specific needs when buying a car i.e. not just at what might look good or perform well, the increased polarisation within the car market suggest many might still be missing a trick.
15 July 2008 © Moneyextra.com
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