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Number of motor insurance customers buying new cars at 3-year high

23 Aug 2010

According to research, the number of British car insurance policyholders planning to buy a new car within the next six months has risen to its highest level in three years, which may interest motor insurance customers.

The latest figures from the Sainsbury's Finance Car Buying Index have shown that, collectively, motor insurance policyholders will spend around £51 billion on new and used cars between now and February 2011.

"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," said Steven Baillie, head of loans at the firm.

It was also revealed that one in five motor insurance customers looking to purchase a car was planning to use a personal loan to cover the cost of their new vehicle.

Earlier this month, statistics from the Finance & Leasing Association showed that, in the first half of 2010, almost half of all car buyers used dealers' financing options to pay for their new vehicle.

Posted by Jonathan Walker