Brits are intending to spend £69.4 billion on new cars in the next six months, a report has said.

According to the Sainsbury's Bank car buying index, more than eight million UK residents are intending to buy a car between September 2006 and February 2007 – an increase of 230,000 on the six months previously.

"We found that almost a third (29 per cent) of people who intend to buy a vehicle over the next six months will finance at least some of their purchase through a loan," said Steven Baillie from Sainsbury's Bank.

"Our findings show that there are more people than ever before who are planning to buy both brand new and second hand cars, which spells good news for the automotive industry," he added.

Of the eight million planning on splashing out on a car, 5.17 million will be looking for a second hand vehicle, compared to 2.45 million intending to buy a new car.

The amounts are not insignificant either, with 799,000 individuals looking to buy a car that costs more than £21,000.

Many people decide to fund their new car purchase with a homeowner secured loan.

Posted by: Peter Kudela
Date: 13th October 2006