However, two thirds of cars will be second hand and only 23% will be brand new. The findings from the previous index, which covered the period February to July 2004, revealed that 5.79 million people intended to purchase a car, with one in four being brand new. Collectively they planned to spend £45.75 billion.
Steven Baillie, loans manager, Sainsbury’s Bank, says: “We estimate only 52% of people planning to buy a new car in the next six months are prepared to haggle over the price they pay. However if those who don’t haggle were prepared to do so, they could save on average £1,300. Our car purchase scheme Drive is guaranteed to beat the list price, in some cases by as much as £3,500.”
Although people planning to purchase a car between now and January 2005 intend to spend on average £7,900 each, 1.41 million expect to spend over £10,000 and 378,000 are planning on splashing out over £21,000 on their new vehicle. Overall, 22%, around £9.27 billion, of the amount people plan to spend will be financed through loans but for nearly one in ten (9%), the entire purchase of their car will be financed in this way.
On a regional basis, East Anglia tops the league for car buying with 14% of people intending to purchase one within the next six months compared to only 9% in the East Midlands, South West and Wales. Those planning to buy a new car in the South East expect to spend the most on them between now and January – a staggering £8.12 billion.