Over Half Of Potential Car Buyers Will Use A Personal Loan Or Credit Card
15 October 2015
- The ability to move freely between dealership and having a cash deposit banked are the key reasons for opting for an unsecured loan
- Majority of potential car buyers believe personal loans rates will beat car finance deals
- Sainsbury’s Bank is currently offering Nectar card holders its lowest ever rate of 3.4% APR Representative on personal loans between £7,500 and £15,000 (taken over one to three years)(2)
The latest figures(1) from the Sainsbury’s Bank 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
|Overall I think the cost of borrowing will be lower
|I want fixed monthly payments to fit in with my budget
|It’s easier to understand / more straightforward than car finance
|I don’t need to worry about saving for a large balloon payment at the end of the term
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’s Price Promise Guarantee
Sainsbury’s Bank also offers a Price Promise Guarantee(3) 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.
This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.
Notes to editors:
- Research commissioned by Sainsbury’s Bank and conducted by ICM Unlimited. ICM interviewed a random sample of 2,019 GB adults aged 18+ online between 5th – 7th August 2015. Surveys were conducted across the country and the results have been weighted to the profile of all adults. Some figures have been rounded. ICM is a member of the British Polling Council and abides by its rules. Further information at icmunlimited.com
- Rate correct at date of issue. The actual rate offered to customers may be higher depending on the individual customer’s personal circumstances, credit assessment procedures and other related factors.
- Multiple credit searches may make obtaining future credit more difficult. Price Promise Guarantee Terms and Conditions: The Price Promise Guarantee (“the Offer”) is only available to individuals who successfully apply for (and subsequently open) a Sainsbury’s Personal Loan (“the Loan”). Claims under the Offer must be received within 28 days after the Sainsbury’s Loan has been approved. Claims under the Offer will not be accepted after the Sainsbury’s Loan offer has been accepted by signing and returning the Sainsbury’s Loan agreement. Customers must provide us with a written offer from the other lender in the same name as the Loan offered by Sainsbury’s. In most cases a photocopy of the loan agreement will suffice but we may ask customers to provide the original agreement. If customers provide an original document, we will return this to the customer within 5 days of assessing the customer’s claim. Photocopies will not be returned and will be securely destroyed by us. Sainsbury’s will verify the validity of the customer’s claim within 5 business days of receiving the customer’s request and notify the customer of the result. A “Lower rate” means a lower Annual Percentage Rate (APR) of an alternative unsecured, fixed rate loan from a lender, compared on a “like for like” basis. We will assess “like for like” based on features such as, but not limited to, length of loan, fixed loan amount, repayment structure (including interest and set up fees (if any). The Lower rate must be available to the general public and be verifiable by Sainsbury’s. The Lower rate must have been offered and must still be available to the customer at the time of the claim. The Offer does not apply to the following rate or loan types:
– Loans where the funds are not available for immediate use
– Discount rates offered only to members of groups or individuals who meet previously specified criteria;
– Rates that are not immediately available, promotions that are not at everyday rates and products which are sold under different terms and conditions, such as special financing (i.e. dealer loans, promotional loans for specific goods);
– Loans that are secured on land, investments or goods.
– Any personal products being charged interest at a variable rate;
– Any personal and non personal loan type products including but not limited to lease, contract hire, hire purchase or conditional sale agreements;
– Loan agreements where interest has been temporarily or permanently suspended (including deferred payments and 0% loans for an initial period);
– Loan agreements where the funds are to support periods of study, or the period immediately following completion of studies (for example, student loans or graduate loans).
If the claim is successful we will reduce the APR on the Sainsbury’s Loan to below that of the alternative lender by 0.1%. e.g. If the alternative lender formally offers the customer a rate of 6.9% APR, the claim is successful and 6.9% APR is lower than our rate offered we will reduce our offer rate to 6.8% APR. We reserve the right to modify or cancel the Offer at any time without prior notice.
To view our latest press releases and product information, please visit the media centre at www.sainsburysbank.co.uk/media
Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. The Bank benefits from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance. Sainsbury’s Bank provides a range of quality products including travel money, insurances, credit cards, savings and loans which we provide through multiple channels, including instore, by telephone and online.
Sainsbury’s Bank plc. Registered Office, 33 Holborn, London EC1N 2HT (registered in England and Wales, no 3279730) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514). Sainsbury’s Bank plc is covered by the Financial Services Compensation Scheme (FSCS).