Nearly £23 billion to be spent on second hand cars

According to Sainsbury’s Finance, around 4.9 million people plan to buy second-hand cars in the six months leading up to the end of August 2008, and intend to spend on average £4,636 each, or collectively as much as £22.76 billion(1). The research reveals that this represents a 8% decrease on the £24.87 billion intended spend for the previous six-month period of September to February 2008.

Sainsbury’s Finance is urging people planning to sell their cars to make sure that they know their potential value so as to achieve the best price. The bank advises people to do their homework before they enter any negotiations.

Steven Baillie, Head of Sainsbury’s Loans, said: "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. Our findings show the amount people anticipate spending on second-hand cars is significantly less compared with six months ago, which may be a knock-on effect of people’s growing financial uncertainty.

"It’s important that people remember to haggle when negotiating any car purchase, as haggling can save the buyer an average of £1,468(2). 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(1)."

On a regional basis, the East Midlands has the largest percentage of people (15%) planning to buy a second-hand car followed by Wales (14%). Scotland has the lowest percentage of people (4%) intending to buy a second-hand car in the next six months.

Location(1) Percentage of adult population in region planning to buy second-hand car between March 2008 and August 2008 Number of people planning to buy a second-hand car between March 2008 and August 2008
East Midlands 15% 507,000
Wales 14% 370,000
Greater London 13% 781,000
North West 13% 690,000
East Anglia 11% 188,000
South East 10% 873,000
Yorkshire/Humberside 10% 411,000
South West 10% 355,000
West Midlands 9% 378,000
North East 7% 175,000
Scotland 4% 181,000

Around 17% of the cost of second-hand cars purchased over the next six months will be financed by loans and Sainsbury’s Finance is urging car buyers to shop around for a competitive rate or explore the various car financing options available. Sainsbury’s Finance provides a number of ways to finance the purchase of new and second-hand cars, as well as offering consistently attractive rates on loans it also offers Drive, a car leasing scheme(3) with access to the very latest makes and models on the market.

Customers taking out a Sainsbury’s Loan can choose to make no repayments for the first three months, receive an instant decision and have their cheque delivered to their door within 24 hours(4).

Notes

(1) 2022 adults were interviewed over the phone by TNS between 1st-10th February 2008. The consumer omnibus research conducted by TNS uses a large sample size that reflects the demographic profile of GB. Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals.
(2) WhatCar? 1 April 2008
(3) Provided by Lex Vehicle Leasing Ltd
(4) Terms and conditions apply

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