Drop in planned second-hand car spend over six-month period

Around 5.48 million people plan to buy second-hand cars in the six months leading up to the end of August, and intend to spend £4,056 each, or collectively as much as £22.23 billion.

The research from Sainsbury’s Bank reveals that this represents a 14% decrease on the £25.92 billion intended spend for the previous six-month period of September 2006 to February 2007, with the average amount people intending to spend on a second-hand car dropping by almost a £1,000 from £5,018.

Sainsbury’s Bank urges people planning to sell their cars to make sure that they know their potential value so as to achieve the best price. The bank provides a free ‘Valuation Tool’ on its website, which helps motorists to understand the potential market value of their existing car. By simply entering the details (make, model and mileage) motorists can find out the estimated value of their vehicle. The service can be found at sainsburysbank.co.uk/drive.

Steven Baillie, Sainsbury’s loans manager, said: “Sellers need to make sure they know the market value of a vehicle to ensure they get a good deal when they come to sell their existing car, or indeed come to buy a new one. Our findings show that people are anticipating spending less on their second-hand car purchase compared with six months ago, so it’s important that they remember to haggle when negotiating any car purchase to secure the best deal.

“Despite the fact that haggling can save the buyer hundreds or even thousands of pounds, many of us are reluctant to do this. Our findings reveal that over half of people who are intending to buy a second-hand car in the next six months state they do not plan to haggle or will only haggle slightly.”

Around 17% of the cost of the second-hand cars purchased over the next six months will be financed by loans and Sainsbury’s Bank is urging car buyers to shop around for a competitive rate or explore the various car financing options available. Sainsbury’s Bank provides a number of ways to finance the purchase of second-hand or new cars, as well as providing some of the most competitive loans in the marketplace, currently starting at just 6.9% APR typical online.

It also offers Drive, a car purchasing scheme. This offers a very flexible way in which to purchase a new car and provides customers with hassle-free motoring and access to the very latest makes and models on the market.

At the end of the agreement either you can choose to make a final payment and keep the vehicle, or choose another car or simply return it owing nothing. Finally, Sainsbury’s Bank will deliver your chosen car direct to your door. Drive offers a typical APR of just 8.9%.

On a regional basis, the East Midlands has the largest percentage of people (15%) planning to buy a second-hand car followed by London, South East and West Midlands (14%). Wales has the lowest percentage of people (5%) intending to buy a second-hand car.