- Tuesday, 30 March 2010There has been a sharp increase in the number of people looking to purchase cars, a quarter of whom are planning on using loans to finance the deal, sparking concerns that
debt management plans could be required.
That is according to new figures released by the Sainsbury's Finance Car Buying Index.
Compared to the previous six month period, the number of customers intending to buy a car between March and August has risen by 47 per cent.
Of those, 24 per cent intend to use a loan to finance at least part of the purchase cost.
Approximately 15 per cent of the total outlay on cars in the next six months will come from personal loans. This amounts to over £7.4 billion and could see an increase in the need for individual voluntary arrangements (
IVAs) and
debt management plans.
Close to half a million people are intending to fully finance the purchase of a new car with a personal loan.
Consumers will have to be careful that an unforeseen change in circumstances does not leave them unable to service the debt, with the economy showing only fragile signs of recovery and unemployment still riding at extremely high levels.
Recent IVA News23% of first-time buyers save for five years to raise a depositWed, 04 May 2011
Brits dealing with Finance Management should shop around for car insurance Wed, 04 May 2011
Parents, including those with Finance Management, advised to start saving for children's weddingsTue, 03 May 2011
Newlyweds may be in need of Finance Management plans after overspending on weddingTue, 03 May 2011
Renting rather than buying may be an option for Brits with Finance Management Thu, 28 Apr 2011
Consumers coping with Finance Management may want to shop around for cheap energy tariffsWed, 27 Apr 2011
Increasing number of Brits turning to loans for home improvementsWed, 27 Apr 2011
Brits, including those with Finance Management plans, to spend £267 on Royal Wedding Tue, 26 Apr 2011
Equity release can be used to 'become debt-free'Tue, 26 Apr 2011
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