Demand for second hand cars soars

Around 5.1 million people plan to buy a second-hand car in the six months leading up to the end of February 2009, spending on average £5,005 each or collectively around £25.5 billion, according to Sainsbury's Finance. This represents a 12% increase on the £22.76 billion intended spend for the previous six-month period of March to August 2008.

Steven Baillie, Sainsbury's Loans Manager, said: "Our research suggests that in the current difficult economic climate, those looking for a car are increasingly turning to the second hand car market as opposed to purchasing a brand new model.

"Whilst it can be significantly cheaper to purchase a second hand car, people should still be prepared to look for ways to reduce their costs even further. One way to do this is by shopping around for a competitive rate if they are looking to finance their purchase through a loan, and also be prepared to haggle with the seller over the price they pay. Unfortunately, our research shows that almost half (43%) of people planning to buy a second-hand car won't haggle or will only do so slightly."

On a regional basis, East Anglia has the largest percentage of people (23%) planning to buy a second-hand car followed by Greater London (14%). Scotland and the North East have the lowest percentage of people (5%) intending to buy a second-hand car in the next six months.

Around 15% 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 consistently attractive rates on loans for the purchase of second hand as well as new cars. 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, visit sainsburysbank.co.uk/drive