Car Loans Will be Decreasing

Sainsbury’s Finance Car Buying Index recently released a report that stated that the number of people who are planning on taking out car loans and purchasing cars has decreased. They say that compared to the transactions in the preceding six month period they can safely assume that there is a downward trend in the car loan and car buying industries.

Looking at the numbers, roughly one million fewer people are planning on purchasing a car this summer, and that only roughly 6.86 million cars will be purchased. Of this number they have found that only about 30% of those people will be taking out a car loan, which is drastically down from where they have been previously.

Experts say that the decrease in the number of car loans is probably due to the fact that many are concerned with recent “economic pressures or environmental anxieties.” There is also a lack of credit in the UK money market which many feel is a result of these trends and is only adding to the lack of future car loans.

If the trend continues, auto loan borrowers will likely see an increase in rates for personal loans so as to discourage those from taking out a personal loan instead of a car loan. The trend began with the beginning of the credit crisis and is not expected to end any time soon.




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