26 billion to be spent on second-hand cars by February

Around 5.16 million people plan to buy second-hand cars in the six-month period up to February 2007, and intend to spend £5,018 each, or collectively as much as £25.92 billion.

These are the findings from research from Sainsbury’s Bank, which is urging people planning to sell their cars to make sure that they know their potential value in order 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, loans manager, Sainsbury’s Bank said: “Knowing the market value of a vehicle will help to ensure owners get a fair price for it when they come to sell or get the best deal with buying a new one. Haggling is also an important part of getting a good deal and could save hundreds or even thousands of pounds. Unfortunately many of us are reticent to do this. Indeed, 50% of people that are planning to buy a second-hand car in the next six months say that 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 competitive loans and a car purchase scheme, Drive which gives access to every make and model on the market at a typical rate of just 8.9 APR.

On a regional basis, the South East has the largest number of people planning to buy a second hand car followed by London.