Nearly £23 billion to be spent on second-hand cars

According to Sainsbury's Finance, around 4.9 million people plan to buy second-hand cars in the six months leading up to the end of August 2008, and intend to spend on average £4,636 each, or collectively as much as £22.76 billion. The research reveals that this represents a 8% decrease on the £24.87 billion intended spend for the previous six-month period of September to February 2008.

Sainsbury's Finance is urging people planning to sell their cars to make sure that they know their potential value so as to achieve the best price. The bank advises people to do their homework before they enter any negotiations.

Steven Baillie, Head of Sainsbury's Loans, 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 the amount people anticipate spending on second-hand cars is significantly less compared with six months ago, which may be a knock-on effect of people's growing financial uncertainty.

"It's important that people remember to haggle when negotiating any car purchase, as haggling can save the buyer an average of £1,468. Despite this our findings show that over half of people who are intending to buy a second-hand car in the next six months say they do not plan to haggle or they may only haggle slightly."

On a regional basis, the East Midlands has the largest percentage of people (15%) planning to buy a second-hand car followed by Wales (14%). Scotland has the lowest percentage of people (4%) intending to buy a second-hand car in the next six months.

Around 17% of the cost of second-hand cars purchased over the next six months will be financed by loans and Sainsbury's Finance is urging car buyers to shop around for a competitive rate or explore the various car financing options available. Sainsbury's Finance provides a number of ways to finance the purchase of new and second-hand cars, as well as offering consistently attractive rates on loans it also offers Drive, a car leasing scheme with access to the very latest makes and models on the market.

Customers taking out a Sainsbury's Loan can choose to make no repayments for the first three months, receive an instant decision and have their cheque delivered to their door within 24 hours.

For further information on Sainsbury's Bank Loans and Drive, log onto sainsburysbank.co.uk/drive.