Boom in used car loans predicted

The According to the latest research conducted by Sainsburys Bank, nearly 25 billion pounds is predicted to be spent on second hand vehicles in 2008. This equates to 5.35 million people spending £4,648 each which is almost £600 increase on the previous month.

What is more remarkable is that 18% of this spending will be funded purely through unsecured or secured loans. There are several reasons why the level spending on second hand vehicles is likely to increase. First, the cost of new motors continues to increase in addition to the high levels of depreciation you can expect in the first couple of years. Second, the cost of public transport continues to increase plus an increasing population means there is a higher demand for second hand cars because of the perceived value.

In view of what is predicted for next year, Steven Baillie, head of Sainsbury's car loans quite rightly points out that those members of the public looking to finance their used second hand vehicle through a personal loan should shop around to ensure they get the best deal. In addition, all those looking to trade in their old model should make sure they are aware of the market value before entering into negotiations.