Carfinance247.co.uk reveals over 40% of people will borrow to fund their next car purchase

New research highlights that while we may be in the throes of a recession, people are still spending money, with 60% saying they plan to buy a new or used car within the next six months.

The study* from car finance and dealer specialist carfinance247.co.uk found that:

  • 57% plan to use cash or savings to fund a new or used car;
  • 27% will use car finance;
  • 10% plan to use a bank or other lending organisation; and,
  • 6% say they will borrow from friends and family;
  • the same amount of males and females say they will use car finance (27% males vs. 25% females) – quite a different result compared to research** carried out last year which showed that women were twice as likely to use car finance compared to men**
  • 50% of those earning over £40,000 a year plan to use car finance;
  • those aged 50-59 accounted for the highest age group (40%) turning to car finance:
  • people in the 30-39 age band were most likely to use cash or savings (67%).

The survey also showed that 80% plan to buy a used car rather than a new car – citing cost as the major reason.

Emily Henshall, Marketing Manager at Carfinance247.co.uk, says: “This research shows what we have felt all along, that cars have become a necessary item. With families spread across the country, longer commutes to work and busier public transport, these factors all point to families needing cars - and reliable updated cars at that.”

"On top of that, nearly 40% of respondents will use credit facilities to fund a car purchase, so while most debts are being controlled, a car purchase, however it is done, is seen so important to drivers that they will borrow."

Ends

*Independent research carried out in March 2013 on behalf of Carfinance247.co.uk by Usurv.

** Independent research carried out in October 2012 on behalf of Carfinance247.co.uk by Usurv.

Contact:

Stella Hulott, Speedie PR, tel: 01843 831088 or email: stella.hulott@speediepr.co.uk.


About us:

Carfinance247.co.uk was founded in 2000, and is a privately owned business with offices based in central Manchester, offering a wide range of motoring and financial services.

We provide vehicle financing solutions for all financial circumstances such as hire purchase, personal contract purchase, contract hire and other leasing options. No deposit is required and we give you the choice of buying any car from any dealer nationwide. Or, if you prefer, we can supply and deliver any make and model of your choice.

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About Us

About us: Founded in 2006 by entrepreneurs Reg and Louis Rix, Carfinance247 is the UK’s leading online car finance brokerage. Carfinance247 help people secure finance on any new or used car regardless of their credit history and once approved, customers are allocated their very own personal finance advisor to guide them through the process. Based in Manchester and employing over 150 people, Carfinance247 simply aims to secure the most appropriate and cost-effective financial deal for its customers from a large panel of well-known financial institutions

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Quick facts

80% plan to buy a used car rather than a new car – citing cost as the major reason
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The study* from car finance and dealer specialist carfinance247.co.uk found that: • 57% plan to use cash or savings to fund a new or used car; • 27% will use car finance; • 10% plan to use a bank or other lending organisation; and, • 6% say they will borrow from friends and family.
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• the same amount of males and females say they will use car finance (27% males vs. 25% females) – quite a different result compared to research** carried out last year which showed that women were twice as likely to use car finance compared to men** • 50% of those earning over £40,000 a year plan to use car finance; • those aged 50-59 accounted for the highest age group (40%) turning to car finance: • people in the 30-39 age band were most likely to use cash or savings (67%).
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Quotes

This research shows what we have felt all along, that cars have become a necessary item. With families spread across the country, longer commutes to work and busier public transport, these factors all point to families needing cars - and reliable updated cars at that
Emily Henshall, Marketing Manager at Carfinance247.co.uk
On top of that, nearly 40% of respondents will use credit facilities to fund a car purchase, so while most debts are being controlled, a car purchase, however it is done, is seen so important to drivers that they will borrow
Emily Henshall, Marketing Manager at Carfinance247.co.uk