Second hand car demand 'on the up'

05/11/2008

People are radically cutting their spending in the credit crunch - with sales of second-hand cars benefitting as a result.

Latest figures from Sainsbury's Finance have shown that just over five million Britons plan to buy a used motor over the next six months, spending a collective £25.5 billion.

This is 12 per cent than the total money spent on the vehicles over the previous six-month period.

Since the onset of the credit crunch, banks have become much more wary about granting loans and credit cards to customers.

Inflation has also climbed to over five per cent, putting further pressure on people's budgets.

Steven Baillie, Sainsbury's loans manager, said: "Our research suggests that in the current difficult economic climate, those looking for a car are increasingly turning to the second hand car market as opposed to purchasing a brand new model.

"Whilst it can be significantly cheaper to purchase a second hand car, people should still be prepared to look for ways to reduce their costs even further."

Tags; Budgeting Advice, Recent Graduate Debt,

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