Tuesday 8th of March 2011
Individuals in the UK already in deep financial trouble may find making expensive purchases could result in them requiring IVA answers to help them improve their monetary situation.
The latest figures from the Sainsbury's Finance Car Buying Index have shown the planned collective spend on new and used motors this year has reached a three-year high.
According to the report, the average amount drivers intend to spend on a vehicle in the next 12 months is £7,169 - £527 more than that recorded six months ago.
Steven Baillie, head of loans at Sainsbury's Finance, said: "The VAT rise that came into force at the beginning of the year does not seem to be putting people off making a car purchase."
The news may come as a surprise for some, as recent research carried out by moneysupermarket.com suggested many Brits are struggling to pay for their everyday living - with 23 per cent of those questioned admitting they are using savings to fund day-to-day essentials.
By Hayley Jones
