The latest Sainsbury’s Bank car buying index, which tracks consumers’ car purchase intentions, reveals that 24% of UK adults(1) are considering buying a car in the next six months.
Sainsbury’s Bank’s car buying index has shown a steady increase in the number of consumers considering buying new cars over the past two years. And figures from the Society of Motor Manufacturers and Traders (SMMT) has revealed that in 2015 new car sales in Britain reached an all-time high(5).
Almost a third (30%) of those in the market for a new car in the next six months said the main reason they will be purchasing a new car is because they are generally feeling more confident about their finances. This is followed by 24% of respondents who cited having more disposable income as the main reason for purchasing a car; another 24% said it was due to changes to family circumstances, followed by 12% wanting to drive a brand new 2016 plate. When the survey was commissioned(1), one in ten (10%) said it was due to petrol and diesel prices dipping below £1 a litre.
Of those who are considering buying a car over the next six months, the average amount each individual anticipates spending is £12,034(1), which is 17% higher than 12 months ago when the average was £10,290(2).
The research found that consumers are increasingly choosing a loan or other finance to pay for a vehicle, with almost half (49%) of car buyers intending to use some form of finance – a seven percentage point increase on 12 months ago. This is supported by the bank’s analysis of its own data which revealed that the average loan amount taken out to purchase a car in 2015 was £9,180(3).
Simon Ranson, Head of Banking at Sainsbury’s Bank, said: “2015 was a great year for car sales driven by a competitive car market, special deals and in particular record low loan rates. We would highlight that having ready cash (whether from a loan or elsewhere) can help secure the best price when negotiating for a car from anywhere – be it online, a local dealer or directly from the owner.”
Even those who are not looking to change their vehicle could save money by switching their existing loan (depending on when their agreement began) to a different provider. Sainsbury’s Bank is offering customers with a Nectar card a typical rate of 3.3% on loans between £7,500 and £25,000, taken over one to three years(4). Sainsbury’s Bank has a loan switcher calculator to help customers gauge whether they might save money by switching their existing loan to a Sainsbury’s Bank loan.
This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.
For further information, please contact:
Emma Murphy / Saira Khan, Citigate Dewe Rogerson on 020 7638 9571
Lorna Gilmour, Sainsbury’s Bank on 0131 286 0786 / Sainsbury’s Bank press office on 0131 286 0010
Notes to editors:
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