Over half of those planning to buy a car in the next six months will use a personal loan or credit card

 

The latest figures from the Sainsbury’s car buying index  which tracks consumers’ car purchase intentions, reveal that over half (53%) of those planning to buy a car in the next six months intend to use an unsecured loan or credit card to purchase it. The main motivator for doing so for two in five (38%) is the belief that they can get a better interest rate compared to a finance deal.

When given multiple choice, other reasons included:

I want to have the freedom to buy a car from whichever vendor or dealership I prefer 35%
Overall I think the cost of borrowing will be lower 34%
I want fixed monthly payments to fit in with my budget 29%
It’s easier to understand / more straightforward than car finance 29%
I don’t need to worry about saving for a large balloon payment at the end of the term 25%


Simon Ranson, Head of Banking at Sainsbury’s Bank said:
“Doing your homework into the different options you have to fund or repay a new car is essential. A personal loan allows buyers to stick to their monthly and total repayment budget as well as removing the balloon payment often included at the end of a vehicle finance deal. We’re currently offering our lowest ever personal loan rate.”

Sainsbury’s Bank also offers a Price Promise Guarantee which means that if customers are offered a “like for like” personal loan that has a lower APR with another lender, the Bank will beat it by 0.1%. This is subject to qualifying for the Offer and customers must not have already accepted its loan offer by signing and returning a Sainsbury’s Loan agreement. Car dealership loans and finance are excluded.

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