| Demand in the car market is demonstrating some | | | | likely to select a large model - and one powered by |
| unexpected patterns regarding the type of vehicle | | | | diesel (at 44 per cent). In contrast, young drivers are |
| drivers most embrace. | | | | more likely to plump for a sporty number which lends |
| New research, published today by AA Personal Loans, | | | | itself to petrol fuelling - an assertion borne out by the |
| identifies a definite divide between new and used-car | | | | 32 per cent of respondents who indicated that petrol |
| buyers concerning the fuel they would like to run their | | | | power was what they were looking for. They were |
| vehicle on. According to the UK loans provider, those | | | | also found to be more likely to seek out 'run-around' |
| planning to purchase a brand new motor are most | | | | vehicles for use in towns rather than the models |
| likely to seek out a petrol-driven model, with 46 per | | | | suitable for long-haul travelling favoured by families. |
| cent expressing such a preference. Meanwhile, only 28 | | | | Mr Huggins continues: "When buying a new car it's |
| per cent of such buyers have indicated that they will | | | | important to consider not just its cost, but also how |
| be looking for a diesel model on which to spend their | | | | you will be using it. If you're making frequent long |
| personal loans. | | | | journeys for example, a diesel could save you money |
| However, in the used-car market - which comprises | | | | with its greater fuel efficiency over long distances. |
| three-quarters of all buyers in the UK - the trend is | | | | Whilst diesel cars might cost more up front, getting a |
| reversed, with a higher number stating that they would | | | | good deal on your finances could mean you are able |
| prefer a diesel-consuming car over a petrol one (at 33 | | | | to afford a car that will hold its value for longer as well |
| per cent and 28 per cent respectively). AA Personal | | | | as cutting your fuel bill." |
| Loans expresses some surprise that there should be | | | | Whatever type of vehicle drivers are looking to buy, it |
| much difference at all, given that fuel prices are rising | | | | is undoubtedly in their interests to seek out the best |
| but the cost difference between the two is closing. | | | | cheap loans to fund the purchase, rather than relying |
| The news has impact beyond the initial outlay and cost | | | | on often expensive forecourt finance. Recent |
| of fuel, however, as Mark Huggins, managing director | | | | research from price comparison site Moneyfacts |
| at the personal finance firm, explains: "Diesel seems to | | | | found that simply choosing the wrong personal loans |
| be king in the second-hand market. The swing to petrol | | | | could increase the cost of a new car by as much as |
| for 57-plate cars could create a future supply issue in | | | | 26 per cent. |
| the second-hand market and so used diesel cars may | | | | And drivers should also prepare themselves to haggle |
| hold their value for longer." Buyers might like to bear in | | | | when at the dealership, given the potential to get a bad |
| mind that buying a diesel car, which could hold its value | | | | deal that the situation presents. According to a recent |
| over a longer period, might reduce the need to seek | | | | survey from Sainsbury's Bank, almost half a million |
| out cheap loans when the next purchase comes | | | | people from September 2007 until February 2008 will |
| around. | | | | purchase a car without any attempt to drive the price |
| Further trends were also revealed by the survey, such | | | | down, costing themselves unnecessary outlay as a |
| as the fact that family vehicle purchasers are more | | | | result. |