Sainsbury's drives home car loan advice
Thursday, 06 Nov 2008 12:11
Sainsbury's Finance is promoting its range of loans, which it is hailing as an ideal way to buy second hand cars.
The move comes after its research revealed the credit crunch had sparked a rise in popularity of second had cars and as news emerged today that new car sales had slumped.
Meanwhile, Sainsbury's also found 5.1 million people planned to buy a second-hand car in the months leading up to February 2009.
And around 15 per cent of the cost of those cars would be financed by loans, Sainsbury's discovered.
However, it urged buyers to do their research and shop around for the best loan deals. Sainsbury's said it provided "consistently attractive rates" on loans for the purchase of second-hand cars.
Its deals included the option to make no repayments for the first three months. Customers would also receive an instant decision and have their cheque delivered to their door within 24 hours.
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."
He added that while it was cheaper to purchase a car second hand, people should still look for ways to reduce costs further and one way to do this was to shop around for a competitive rate if they wanted to finance the purchase though a loan.