It seems that many of us are willing to fund our next car with a car loan. UK consumers are falling pray to the credit crunch, as 27% of those who intend to buy a vehicle will use car finance to cover some of the cost.
According to the Sainsbury’s Finance Car Buying Index, 18.4% of the total amount spent on buying vehichcles will be covered through a car loan. UK car finance will total around £9.14 billion. This is a drop of £0.5 billion as the number of people planning on buying cars hits a three year low, probably due to the credit crunch and debt worries.
Steven Baillie, Head of Loans, Sainsbury’s Finance said: “”We’ve been conducting our car buying index now for five years and our findings reflect the economy’s current uncertainty, with one million fewer potential car buyers than 12 months ago.”