AA: UK using savings to buy cars
22/08/2006
More people are using their savings to purchase new cars, according to new research by AA Savings.
In the company's quarterly survey of car-buyers' intentions, the amount of people planning to use savings has increased by a third to 37 per cent.
A total of 40 per cent of women planning to buy a new vehicle will use their savings, which suggests that women are 14 per cent more likely to save for a car then men.
The survey indicates that men are more likely to find alternative ways of finding car finance.
Lloyd East, general manager of AA Savings, said: "Around 400,000 new cars at an average cost of £13,000 will be registered following the September plate change. This in turn will release an estimated 1.1 million used cars on to the market at an average cost of £5,500."
"That's a staggering £60.7 billion changing hands on Britain's forecourts - which suggests that nearly £22.5 billion of savings will be invested on cars. Yet despite this, 74 per cent say spending money on a car is a financial burden, rather than an investment."
He adds that the findings show that "women are thinking well ahead by saving for their next car", whereas "men are more likely to cash in investments or use funds in their current account".
Price comparison website, Confused.com, indicated recently that women's car insurance costs could be on the rise because of an increasing number of girl-racer drivers.
In the company's quarterly survey of car-buyers' intentions, the amount of people planning to use savings has increased by a third to 37 per cent.
A total of 40 per cent of women planning to buy a new vehicle will use their savings, which suggests that women are 14 per cent more likely to save for a car then men.
The survey indicates that men are more likely to find alternative ways of finding car finance.
Lloyd East, general manager of AA Savings, said: "Around 400,000 new cars at an average cost of £13,000 will be registered following the September plate change. This in turn will release an estimated 1.1 million used cars on to the market at an average cost of £5,500."
"That's a staggering £60.7 billion changing hands on Britain's forecourts - which suggests that nearly £22.5 billion of savings will be invested on cars. Yet despite this, 74 per cent say spending money on a car is a financial burden, rather than an investment."
He adds that the findings show that "women are thinking well ahead by saving for their next car", whereas "men are more likely to cash in investments or use funds in their current account".
Price comparison website, Confused.com, indicated recently that women's car insurance costs could be on the rise because of an increasing number of girl-racer drivers.
