Car spending tops £36bn a year
Brits spent £36.4bn on purchasing new and used cars last year, new research from Halifax Unsecured Personal Loans has revealed.
This amounts to 4.5% of the total household disposable income spend in the UK, an average of £1,490 per household a year. This is a £13.8billion rise from 1995 where the total amount spent was £22.6bn.
Over the past 10 years, according to Halifax research, spending on motor vehicles has increased by 61 percent. However, consumers are getting more for their money, as prices in general have decreased by 6 percent.
The research also revealed that buying a car is the second most popular reason for taking out a loan after debt consolidation. Almost one in four loans taken by men are for this purpose, compared to one in seven for women.
Ian Larkin, head of Halifax Unsecured Personal Loans, says: “Buying a car is probably the second biggest purchase you will ever make, after buying a house, so it is important to consider how you intend to finance this and choose a product most suited to your needs.”