The AA has reduced its representative APR on
personal loans for members to 6.4%, claiming 13% of car buyers are
considering such loans to finance part or all of their next car
purchase.
The rate of 6.4% is available on loans between
£7,500 and £14,950 over one to seven years. Applied to loans of
£8,500 over four years, the 6.4% rate is the eighth-lowest
available, according to the latest figures from
moneysupermarket.com and June’s issue of Motor Finance
magazine, behind HSBC (6.2%), First Direct (6.1%) and a combination
of regional and supermarket banks offering 6%.
Go deeper with GlobalData
As recently as May, the representative APR on
such a loan from the AA was 7.9%.
Mark Huggins, director of AA Financial
Services, said research by the company demonstrated the number of
people planning to change cars in the next few months is at its
highest for three years, an effect
due in part to rising UK car sales.
Huggins also said the figure of 13% of
purchasers considering personal loans was slightly up on last year
but behind the 20% considering such a means of finance in 2009.
Full data and analysis of personal loan
rates, finance and sales figures are published
every month in
Motor Finance
magazine.
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By GlobalDatarichard.brown@vrlfinancialnews.com
