More people plan on buying cars, Sainsbury's Finance reveals

One in four people intend to use a loan to fund buying a car.

A significant number of people are looking to purchase a car using a loan.

This is the assertion of Sainsbury's Finance, which reports that a quarter (24 per cent) of those set to buy a new or second-hand vehicle between now and August will do so through a personal loan.

Some 7.56 million people are planning to purchase a car during this period of time, a rise of 47 per cent from those who intended do so between September and February.

Overall, £49.1 billion is to be spent on cars, the highest estimated expenditure to have been seen since the six-month period ending September 2008.

Steven Baillie, head of loans for Sainsbury's Finance, comments: "Overall, these latest figures should provide a great deal of optimism for the car industry."

He claims that despite the government's vehicle scrappage scheme coming to an end today (March 31st), car sales will continue to rise over the next six months.

His comments follow research from the Society of Motor Manufacturers and Traders which noted 385,836 used cars were bought in December 2009.

By Kate Guthrie