Billions 'To Be Spent On Cars In Build Up To Summer'

More than 47 billion pounds is to be splashed out on cars during the next six months, new research indicates.

More than 47 billion pounds is to be splashed out on cars during the next six months, new research indicates.

In a study carried out by Sainsbury's Finance, as part of its latest Car Buying Index, it was shown that an estimated 6.86 million Britons are looking to purchase a vehicle between this month and the end of August. These consumers are set to spend a total of 47.5 billion pounds during this period of time, however this figure reveals a fall of 11.1 billion pounds in expenditure recorded between September 2007 and February 2008. Additionally, findings by the financial services firm showed the number of those aiming on to get on an automobile has fallen by about one million from the preceding six-month period.

Consumers looking to fund the purchase of a car in a cost-effective manner, meanwhile, may wish to consider applying for a UK personal loan. In doing so, buyers could discover they are left with affordable repayments to make each month.

Just under a third (30 per cent) of those who intended to get a car state that they will, at least in part, finance such a purchase through a cheap personal loan. It was estimated that personal loan spending on automobiles for the six-month period will stand at about 8.67 billion pounds.

Despite a general decrease in vehicle purchasing levels across Britain, those from the east Midlands were actually shown to be more willing to get a car. During the September of last year and February, 13 per cent of consumers resident there were indicated as looking to purchase an automobile. However, for the coming six months the proportion such people has surged to stand at 20 per cent, spending some 3.7 billion pounds. People living in the south-east and the Yorkshire and Humberside regions of the country were also revealed to be increasingly planning to buy a car between now and August. In comparison, falls have been noted in Greater London, Wales and East Anglia among other districts.

Steven Baillie, head of loans for Sainsbury's Finance, commented: "We've been conducting our car buying index for the past five years and our findings would indicate that both the number of people who are looking to buy a car over the next six months and the total amount expected to be spent on car purchases are at their lowest levels since March 2005.

"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 ten per cent in the last three years."

For an effective way to purchase a car, taking out a low cost personal loan might be helpful. Opting for a cheap loan ahead of a garage showroom deal could see borrowers left with affordable repayments to make each month. In addition, the extra help with finance that a loan offers could assist drivers with meeting other motoring expenses such as petrol, repairs and MOT. Meanwhile, a study conducted by Experian last year indicated that women are increasingly conscious of the financial implications of buying a car. Research by the firm showed that cost is the most influential factor for such consumers when getting a second-hand vehicle.

About the author: Steve Smith writes for 1 stop finance shop where visitors can apply for UK cheap consolidation loans and also focuses on UK personal loans and loans for bad credit for UK residents.