Prospective buyers are considering spending an average of £12,034, 17% higher than last year (2)
Average loan taken out for car purchasing is £9,180(3)
Sainsbury’s Bank is currently offering a typical rate of 3.3% on loans between £7,500 and £25,000 (taken over one to three years) (4)
The latest Sainsbury’s Bank car buying index, which tracks consumers’ car purchase intentions, reveals that 24% of UK adults(1) are considering buying a car in the next six months.
Sainsbury’s Bank’s car buying index has shown a steady increase in the number of consumers considering buying new cars over the past two years. And figures from the Society of Motor Manufacturers and Traders (SMMT) has revealed that in 2015 new car sales in Britain reached an all-time high(5).
Almost a third (30%) of those in the market for a new car in the next six months said the main reason they will be purchasing a new car is because they are generally feeling more confident about their finances. This is followed by 24% of respondents who cited having more disposable income as the main reason for purchasing a car; another 24% said it was due to changes to family circumstances, followed by 12% wanting to drive a brand new 2016 plate. When the survey was commissioned(1), one in ten (10%) said it was due to petrol and diesel prices dipping below £1 a litre.
Of those who are considering buying a car over the next six months, the average amount each individual anticipates spending is £12,034(1), which is 17% higher than 12 months ago when the average was £10,290(2).
The research found that consumers are increasingly choosing a loan or other finance to pay for a vehicle, with almost half (49%) of car buyers intending to use some form of finance – a seven percentage point increase on 12 months ago. This is supported by the bank’s analysis of its own data which revealed that the average loan amount taken out to purchase a car in 2015 was £9,180(3).
Simon Ranson, Head of Banking at Sainsbury’s Bank, said: “2015 was a great year for car sales driven by a competitive car market, special deals and in particular record low loan rates. We would highlight that having ready cash (whether from a loan or elsewhere) can help secure the best price when negotiating for a car from anywhere – be it online, a local dealer or directly from the owner.”
Even those who are not looking to change their vehicle could save money by switching their existing loan (depending on when their agreement began) to a different provider. Sainsbury’s Bank is offering customers with a Nectar card a typical rate of 3.3% on loans between £7,500 and £25,000, taken over one to three years(4). Sainsbury’s Bank has a loan switcher calculator to help customers gauge whether they might save money by switching their existing loan to a Sainsbury’s Bank loan.
Ends
This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.
For further information, please contact:
Emma Murphy / Saira Khan, Citigate Dewe Rogerson on 020 7638 9571
Lorna Gilmour, Sainsbury’s Bank on 0131 286 0786 / Sainsbury’s Bank press office on 0131 286 0010
Notes to editors:
Research commissioned by Sainsbury’s Bank and conducted by ICM Unlimited. ICM interviewed a random sample of 2,018 GB adults aged 18+ online between 5th – 7th February 2016. Surveys were conducted across the country and the results have been weighted to the profile of all adults. Some figures have been rounded. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmunlimited.com
Research commissioned by Sainsbury’s Bank and conducted by ICM Unlimited. ICM interviewed a random sample of 2,004 GB adults aged 18+ online between 18th-20th February 2015. Surveys were conducted across the country and the results have been weighted to the profile of all adults. Some figures have been rounded. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmunlimited.com
Analysis of Sainsbury’s Bank Loan Book – January – December 2015. Please note that unless otherwise stated, figures are based on loans which were used for the purchase of a car, either in full or in part.
Rate correct at date of issue. The actual rate offered to customers may be higher depending on the individual customer’s personal circumstances, credit assessment procedures and other related factors.
SMMT – http://www.smmt.co.uk/2016/01/record-year-for-new-car-market-as-registrations-hit-2-6-million-in-2015/
Sainsbury’s Bank
To view our latest press releases and product information, please visit the media centre at www.sainsburysbank.co.uk/media
Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. The Bank benefits from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance. Sainsbury’s Bank provides a range of quality products including travel money, insurances, credit cards, savings and loans which we provide through multiple channels, including instore, by telephone and online.
Sainsbury’s Bank plc. Registered Office, 33 Holborn, London EC1N 2HT (registered in England and Wales, no 3279730) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514). Sainsbury’s Bank plc is covered by the Financial Services Compensation Scheme (FSCS).