Car Loans Rise Following Launch of Car Scrappage Scheme
Tuesday, 10th November 2009
Research from Sainsbury’s Finance has found that since the launch of the Government’s 'Cash for Bangers' scheme in May, an estimated £61.2 million of personal loans per month have been taken out to purchase cars, compared with a monthly average of £44.7 million in 2009, prior to the scheme.
The Government scheme, which pays consumers £2,000 to get rid of their old cars and replace it with a more environmentally friendly vehicle, has been so successful that the Government recently announced an extension of the scheme to cover an additional 100,000 cars and vans.
According to Sainsbury’s Finance, the initiative accounts for a 37% increase in the value of personal loans taken out to purchase cars in the 3 months after the launch date of 18 May 2009.
Commenting on the figures, Steven Baillie, head of Sainsbury’s loans, said: “Since the Government’s scheme has been introduced we have seen a sharp spike in the number of loans people are taking out in order to buy a car, which is hopefully a good sign that the motor vehicle market is coming back to life.”
The scrappage scheme was introduced to boost the ailing car industry and has since contributed to a sharp rise in car sales, according to the Society of Motor Manufacturers and Traders.
According to Sainsbury’s Finance, the initiative accounts for a 37% increase in the value of personal loans taken out to purchase cars in the 3 months after the launch date of 18 May 2009.
Commenting on the figures, Steven Baillie, head of Sainsbury’s loans, said: “Since the Government’s scheme has been introduced we have seen a sharp spike in the number of loans people are taking out in order to buy a car, which is hopefully a good sign that the motor vehicle market is coming back to life.”
The scrappage scheme was introduced to boost the ailing car industry and has since contributed to a sharp rise in car sales, according to the Society of Motor Manufacturers and Traders.
Recent News Blog Posts
- Brighter times?
- Credit Card Borrowning On The Increase
- Low Personal Loan Rates By The Nationwide.
- Car Loans Rise Following Launch of Car Scrappage Scheme
- Loan Applicants Advised To Be Honest
- Penalised for Checking Your Credit? That's Unfair!
- Payday Loans Named "Most Expensive"
- FSA Bans Lenders from Selling PPI
- Consumers Continue To See Fewer Benefits from Low Base Rate
