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24% of car buyers `plan to use a loan`

By Matthew Plant - Financial specialist

Just under a quarter (24%) of people planning to buy a car in the next six months plan to take out a car loan to cover at least part of the cost, according to Sainsbury`s Finance.

Around half a million (457,000) of these car buyers are expected to take out a loan that covers 100% of the value of the car.

Steven Baillie, Head of Loans at Sainsbury`s Finance, said: "Overall, these latest figures should provide a great deal of optimism for the car industry. Recent industry figures showed a significant rise in new car sales in February and our Index suggests that that trend - despite the end of the Scrappage Scheme - is set to continue in the coming six months."

A car finance expert at Think Money said: "With rates staying relatively low, many drivers will be looking to buy a car on finance. Lenders have been more willing to offer loans in recent months, and this has helped contribute to the overall improvements in car sales.

"Car buyers owe it to themselves to look around for the best car loan they can find - either online or with the help of a loans adviser."

Tags: car, car loans, loans

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