Va va voom for sensible saloons

The myth that British motorists would want a Ferrari rather than a Volvo has been disproved by new research from Alliance & Leicester Personal Loans, which reveals that over half (59%) of all motorists prefer a sensible, economical motor over a speedy sports car.

With the 1st September launch of the new ’55’ registration plates approaching, the poll of over 2,000 motorists reveals that one in five (20%) considers a small economical hatchback their ideal car, more than a third (37%) a family saloon and for one in ten (11%), a people carrier is ideal. Only 5% of motorists are dreaming of a sports car, and 3% aspire to own a convertible

Interestingly just one in ten (11%) think high speed and performance are important features when buying a car, only 6% desire a ‘top of the range’ model, and only 9% want a motor that includes all the latest gadgets.

The vast majority (72%) of motorists look for reliability, with 58% looking for comfort as a priority. Though almost two thirds (62%) want a car that is economical to run, service and repair.

Whilst the research shows that the vast majority of motorists (71%) view value for money as an important factor when it comes to choosing a new car, few act on this when it comes to financing their car. Nearly one fifth (17%) of motorists admit to regularly using a finance deal offered by the car showroom, which on average charges over 13% APR - double the rate on offer from many personal loan providers.

With the average motor now costing nearly £12,000, showroom finance over four years could cost over £1,700 more than a low-rate personal loan with Alliance & Leicester at 6.4% APR. As a typical motorist buys, on average, 11 cars over a lifetime, they could be wasting a staggering £18,791 by repeatedly using car dealer finance!

Some of the reasons consumers have got into the bad habit of using car showroom finance:

One in ten (9%) are talked into it by the car salesman.
More than a quarter (27%) say it is because they have simply "always done it this way – it’s just what I’m used to now".
One fifth (21%) believe they will get a discount on the price of their car or some freebies if they take the finance.

Andy Bayes, Head of Personal Loans at Alliance & Leicester explains: "When it comes to the crunch, a speedy sports car really isn’t the dream car of most motorists today. What they really want is reliability, value for money and comfort - all practical choices for modern-day motorists.

"Yet despite so many motorists realising the importance of value for money when buying a car, millions don’t practice this when it comes to financing their motor. I would urge anyone considering buying a car this autumn to shop around before signing up for car finance."

Andy Bayes continued: "People should base their decisions on the rate being offered and not just the freebies and discounts on offer from the car showroom. Even those who have already signed up to pricey finance can easily switch to a low-rate personal loan and make a huge saving."