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Sainsbury's releases new car figures

Car dealerships seem set to endure months of poor business - with new research showing a three year low in people planning to buy a vehicle.

Figures released yesterday by Sainsbury's Finance predicts new car spending to hit £47.5 billion over the next six months - £11 billion down on the previous half-year's total.

The research also revealed that around 30 per cent of new car buyers plan to at least partially fund their purchase with a car loan.

Steven Baillie, head of loans at Sainsbury's Finance, said: "We've been conducting our car buying index for the past five years and our findings would indicate that both the number of people who are looking to buy a car over the next six months and the total amount expected to be spent on car purchases are at their lowest levels since March 2005.

"It is difficult to pinpoint exactly what is behind this decrease and could be due to a mixture of factors such as concerns around much-publicised economic pressures or environmental anxieties."

Sainsbury's Finance also said yesterday that the total proportion of new car spending set to be financed through a personal loan for the next six months will hit £8.6 billion.

This is down £2.1 billion on the previous results - and could be due to lenders tightening their criteria for borrowers in the wake of the credit crunch.

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