A new study conducted by sainsbury’s bank suggests that just shy of 8 million people intend on purchasing a new car this year, and the majority of which are opting for cheap car loans to fund the purchase.
This indicates a change in spending patterns and a more heightened consumer awareness of the increased competition in the finance market. Approximately 8 billion pounds will be borrowed over the next few months by consumers for the purchase of a new car. Fewer people are opting for direct car finance and are turning to lenders for competitively charged car loans as an alternative.
On the other hand, the number of actual new car purchases is down compared to last year. Their is no definitive reason to explain the dip in spending, although environmental factors and increased interest rates could be to blame.
