The current financial crisis is having many different effects on the may that people are spending their cash, but although interest rates have gone down the actual benefits of this are not filtering through to the people who are having to pay the mortgages etc, which leaves little over for the new car purchase.
In a recent report from Sainsbury’s bank it has been found that there will be a lot fewer people looking to by a new car within the next six months, this is bad news for everyone in the industry from salesman to the people who work in the car factories, as well as the finance companies everyone is feeling the pinch.
In fact it is believed that there will be a serious decrease in the amount of money, something in the region of £11 billion less that the same period last year being spent on a new car purchase.
Steven Baillie, head of loans at Sainsbury’s Finance, said: “Indeed, our research indicates that the overall cost of motoring, everything from servicing to insurance and fuel has increased by ten per cent in the last three years,”
Source [Lombard Direct]
Mr Butterscotch says
March 6, 2008 at 9:52 pmIn a way, this is good for buying a new car. If you’re relatively well off, you’ll be able to wrangle a particularly good deal.