The amount of money people expect to spend on a used car is down 8 percent compared with the previous 6 months. Sainsburys Bank gained this information from their regular survey, finding also that nearly 5 million people plan to buy a used car during the coming six month period.
The advice to anyone selling a car then is to be well aware of the state of the market and not to price their vehicle too high. Knowing how the market is going can really help used car sellers position their vehicles at a price they feel will be acceptable and so get a quick sale.
Sainsburys Bank also found that over 15 percent of second hand cars bought would be financed through a car loan, with the average price of vehicle coming in at over GBP4,500.
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According to an ICICI Bank spokesman the business is expecting to see an increase in loans provided running through the third and fourth quarters of the financial year.
The bank are confident that their commercial arm will be bringing in a large volume of loan business, with an expectation of twenty percent growth in the consumer sector too. This large growth expectation is fuelled by the reduction in interest rates they have applied, where home loans, car and personal loans have all seen their repayment rates reduced.
The commercial sector is forecast to see growth of around sixty percent according to information coming out of the ICICI Bank, driven primarily by the offering of new product lines to this market. Options will include a number of insurance products, new loan offerings and more banking facilities.
The bank feel that small to medium enterprises in India do not have enough options to meet their varied needs and so are happy to support them with these new products.
As the pressures on global credit increase so personal loans are feeling the squeeze, with some rates going up by around four percent, though Eskimo Loans rose by only 1 percent.
In a week when large numbers of lenders thought the time was right to increase their personal loan interest rates the consumer saw how the global economy was affecting them at a personal level. As the banks fight to maintain lines of credit and look to lend money only to those with the lowest perceived risk so interest rates are bound to rise to cover the costs of bad debts.
The worry is that this can cause a self-fulfilling prophecy, with consumers facing increased interest rates they have to pay more out each month, which leads to them potentially struggling to make repayments and then becoming a bad debt. On a purely statistical basis though the lenders will recoup more in extra interest overall than they will lose in bad debts, so they feel their actions are justified.
As mentioned, against a backdrop of some quite large rate increases the move by Eskimo Loans to add just one percentage point to their basic rate was seen as a reassuring step by their customers. They can deal with this level of increase though would not like to see many more on top of it.
