Car insurance customers ‘have less money’

Car buyers are planning to spend less on second-hand cars over the six months to August 2009, new figures have indicated.

Motor insurance customers are advised to shop around carefully for competitive loans when buying a vehicle and “haggle” with sellers to obtain the best price, according to Sainsbury’s Finance.

Figures from the company suggest that around ten per cent of UK adults plan to buy a used car during the period in question, with purchasers intending to spend an average of £4,487 each, less than the estimated amount for the six months between September 2008 and February 2009.

Steven Baillie, head of Sainsbury’s Loans, said: “Homework is key to confidence here; if you know what you should be paying you’ll be able to haggle more effectively.”

A recent government scheme to provide car and van customers with up to £2,000 in subsidies when they trade in a vehicle that is ten years old or more has proved popular with buyers and 35,000 orders have been placed since it was announced.

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