Saturday, February 16, 2008

Consumers are increasingly looking to purchase cheaper cars and many are using personal loans to finance the deal, a new study has shown.

Research from AA Personal Loans showed that the typical amount a person plans to spend on a new motor has dropped by an average of £976 over the last six months.

As a result, more people are now planning on purchasing a second-hand car rather than a new vehicle.

In a bid to get the cheapest deal, a third of consumers said they would use a personal loan to finance their new set of wheels.

"Faced with rising costs including fuel: for example the cost of unleaded petrol is now 102.8p per liter compared with 87.5p this time last year, car buyers seem to be shopping around for a more economical way of buying a reliable car," explained Mark Huggins, head of AA Personal Loans.

"A third of buyers finance their car purchase with a loan, so it's important they shop around for the best loan rate, too."

Recent figures from uSwitch.com showed that consumers could save £1,094 each by opting for a personal loan over a traditional car finance deal when buying a new motor.

Source : http://www.moneyhighstreet.com/news/