AA: More savings used to buy cars

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AA: More savings used to buy cars

Mon 21st Aug 2006

More and more people are looking to use savings to buy their next car according to AA Savings, with an increase of a third since the beginning of this year alone.

And women are even more likely than men to use their hard-earned savings in this way, standing at 14 per cent more likely to use savings than a loan.

Since the start of 2006 – when 26 per cent of people said they'd use their savings for their next car – there has been a significant change in buyers' intentions, with 37 per cent now looking to dip into the savings accounts for their next car.

Lloyd East, general manager of AA Savings, said that "a staggering £60.7bn [will change] hands on Britain’s forecourts – which suggests that nearly £22.5bn of savings will be invested on cars".

"It’s clear from these findings that women are thinking well ahead by saving for their next car. Men are more likely to cash in investments or use funds in their current account," he added.

Among women, the number planning to raid the piggy bank for a car has doubled – up from 21 per cent of respondents in January to 40 per cent in the recent study.

New figures from the British Banker's Association back up the AA research, with consumer lending subdued in July – loans and overdrafts grew by just £0.6 billion, with credit card lending falling £0.3 billion over the month.

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