Females more savvy when financing a new car
New research highlights that over a third of Brits (36%) plan to buy a new or used car within the next 12 months.
The study* from car finance specialist Financible.com also revealed that:
- 36% of people planning to buy a new or used car within the next 12 months intend to use some form of finance
- 64% of those said they are going to finance the car from their own cash/savings
- nearly one in five (19%) said they would be using car (dealership) finance
- 17% said they would use their bank or other financial institution (e.g a car loan broker).
There were also quite interesting gender differences with:
- females twice as likely to use their bank or other financial institution than using dealership finance (24% vs.12% males)
- 63% of males are planning on buying a new car versus 47% of females.
When asked about buying a new car versus a used vehicle, the survey found that ….
- 56% of respondents said they are going to buy a new vehicle
- those living in Scotland and Northern Ireland were most likely to buy a new car (60%)
- the top three reasons for buying new were (in order): “I just like to buy new”; “I am being offered a financial incentive from dealer”; and “I can get free insurance”
Buying second hand
- 81% of those who plan to buy a second hand car said they were doing so because of the cost
- A further 38% also said that by buying a used vehicle they “can afford the vehicle I want”
- Those living in London, East Midlands and Wales were most likely to buy a used car.
Roman Danaev, CEO and founder of Financible.com says: “We commissioned the survey to get an understanding of the appetite for buying new and used cars after Brexit and to see what car financing options people would chose.
“It was interesting to see even after all the recent uncertainty in the economy due to the Brexit vote, that this is not stopping people from investing in new or newer cars.
“Nearly 40% of people said they are considering a new car purchase in the next 12 months, with almost one in five using dealer finance, as they felt that they would get a good offer.
“We do recommend, however, that people shop around for car finance before they hit the forecourts, as there are other options** that may be more suitable - and cost-effective - for them.
“Certainly, the data shows that female car buyers appear to be more financially savvy than their male counterparts, with females twice as more likely to use their bank or other financial institution for a car loan than using car dealership finance.”
* Independent survey carried out by Usurv on behalf of Financible.com, August 2016.
** To buy a new Suzuki Swift 1.6 Sport 3dr (Nav) on a PCP deal will cost £175 a month for 48 months, with a final payment of £4,328. Total cost of credit including the final payment £15,100.
Using a car loan from Financible.com for the same specification of vehicle will cost from £309 a month for 48 months, with NO final payment. Total cost of credit £14,826 (based on a customer having a good credit history).
Roman Danaev, CEO, Financible.com. Telephone: 0207 016 8300
Stella Hulott, Speedie PR. telephone: 01843 831088 or email: firstname.lastname@example.org
Launched in June 2016 by entrepreneur Roman Danaev, Financible.com is a new UK car finance brokerage. Financible helps people secure cost-effective finance on any new or used car from a wide panel of lenders. Even people needing bad credit car finance or who have been refused finance elsewhere can apply. Once approved, customers are free to buy their new or used vehicle from any dealership nationwide.