Car sales upThe number of people planning to buy a new or used car during the next six months is at a three-year high, according to research conducted by the Sainsbury’s Finance Car Buying Index.

The survey found that 7.68 million people are planning to buy a car between September 2010 and February 2011. This represents a 49 per cent increase on the 5.14 million people for the same period this time last year.

The survey also showed that Britain’s motorists plan to spend £51 billion in the next six months on new and used cars – the highest since September 2007 – and that each person expects to spend around £6,600 on their new motor.

The survey also found that one in five of these will look to finance at least part of their purchase, with personal loans expected to account for around 11 per cent (or £5.8 billion) of the total cost.

There are many types of finance available to help you buy a new or used car. From unsecured personal loans to hire purchase, find out which one is right for your budget with our guide to understanding car loans and finance.

How Auto Trader can help: Find a loan

Head of Loans at Sainsbury’s Finance, Steven Baillie said: “We’ve been conducting our car buying index for the past seven years and our findings would indicate that the numbers looking to purchase a car are certainly starting to pick up again.

“We have also recorded an increase in the number planning to buy a brand new car, which is good news for the car industry as a whole as it would suggest that the end of the car scrappage scheme has not led to the feared drop-off in the number of customers wanting to buy a new car.

“Another factor that could be helping to fuel an expected rise in 2010 car sales is the planned rise in VAT, due to come into force in January 2011. This could see buyers bring their car purchases forward to beat the rise.”

How Auto Trader can help: Find a loan

The statistics: 18-month view

Sep2009 – Feb 2010 Mar 2010 – Aug 2010 Sep 2010 – Feb 2011

Total number of people planning to buy a car: 5.14 million, 7.56 million, 7.68 million
Total amount expected to be spent on cars: £39.0 billion, £49.1 billion, £51.0 billion
Amount expected to be spent on cars per person: £7,590, £6,492, £6,642 each

How Auto Trader can help:
• Understanding car loans and finance
• Buying a used car
• Buying a new car
• Setting your budget

The Sainsbury’s Finance Car Buying Index tracks the number of people planning to purchase a car on a six-monthly basis. The research was conducted by TNS and involved 1994 people between 30th July and 1st August 2010.

How Auto Trader can help: Find a loan

By Rhian Angharad Jones