£23bn Second-hand Car Spend Predicted

Personal loans will be used to fund many of the 4.9 million second-hand car purchases predicted to take place in the UK over the next six months, Sainsbury's Loans has said.

According to new research from the loans provider, around £22.76 billion will be collectively spent on the vehicles over this period by the motorists, or £4,636 each. The highest proportion of buyers was found in the East Midlands (15 per cent), with the lowest percentage in Scotland (four per cent).

Sainsbury's Loans said that around 17 per cent of the total second-hand care expenditure will be financed through loans. The firm is also "urging" drivers to shop around for the "most competitive" personal loan rate, in order for repayments to be kept under control.

In addition, drivers were also recommended to not be afraid to haggle with car dealers in order to get the best possible price for the vehicle itself. Head of Sainsbury's Loans Steven Baillie commented: "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."

He added: "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."

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