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Over Half Of Potential Car Buyers Will Use A Personal Loan Or Credit Card

15 October 2015

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 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’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.

Ends

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:

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.

Sainsbury’s Bank

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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).