Say yes to cheaper van, home and car insurance

Motorists interested in picking up a new car may be looking to do so with borrowed money, according to new research.

Some 18 per cent of personal loans are used to purchase automobiles, according to Sainsbury's Bank.

Drivers expecting this to be a cheaper, faster way of purchasing would be wise to consider the car insurance and road tax cost implications of such a move, as they may end up paying more than they first thought.

Steve Baillie, head of loans for Sainsbury's Bank, commented on the activity.

"Just over 30 per cent of our customers are using loans for [purchasing vehicles]. That's ongoing, there's a little bit of seasonality [and] peak times tend to be March and September," he said.

This comes despite the fact that British Car Auctions reported strong sales over August - a traditionally quiet period for second-hand vehicle purchase.

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