J Sainsbury : UK adults more likely to drive away with a second hand car

Two in five (40%) of Brits are planning on or are likely to buy a car in next two years

According to Sainsbury's Bank Car Insurance, two in five (40%)(1) drivers are planning on buying or are likely to buy a car in the next two years. Among these, over a fifth (22%) plan on buying a second hand car, while 17% will be looking to buy a new car.

When it comes to top models, according to Sainsbury's Bank Car Insurance data(2) the Ford Focus is the most popular model for drivers, followed by Ford Fiesta, Volkswagen Golf, Vauxhall Astra and Vauxhall Corsa.

For those who will be heading to the forecourts for some new wheels, the average amount they plan to spend is £14,070. Furthermore, men are happier to spend almost £5,000 more than their female counterparts (£16,036 compared to £11,360).

Impact of new registration plates

Among those in the market for a second hand car, almost a quarter (23%) are being savvy with their cash by deliberately choosing to buy their new wheels in April or October to take advantage of lower prices following new registration plates released in March and September.

The younger you are the more likely you are to wait until April or October with almost two fifths (37%) of 18-34 year olds looking to buy a second hand car in the next two years stating they will wait for new plates compared to just 12% of those aged 55+.

Getting a better deal (41%) is the main reason why drivers are prepared to wait until these months to purchase their car. This is followed by acknowledging there is a drop in price in older cars (22%) and having more cars to choose between (21%).

Karen Hogg, Head of Insurance at Sainsbury's Bank said: 'It's encouraging to see many drivers being smart with their cash and identifying the impact new registration plates have on the cost of older cars. However, before making the purchase it's important drivers undertake the necessary financial checks for example researching good quality car insurance.'

Top five regional spend on next car purchase

Sainsbury's customers who take out a car insurance policy with the Bank can earn double the Nectar points on their Sainsbury's shopping and fuel(3), and Nectar card holders(4) receive money off their car insurance payments.

Our Comprehensive Car Insurance has been awarded a 5-Star Rating by Defaqto(5), the independent financial research company. It covers driving in Europe, as well as also offering customers optional extra RAC breakdown cover in Europe.'

For further information on Sainsbury's Bank car insurance, underwritten by a carefully selected range of insurers, call 0345 266 1601, visit www.sainsburysbank.co.uk or pick up a leaflet in store.

Five tips when buying a car:

• Do your desk research - Before you hit the forecourts, think about what you really need from a car. There's no point buying a two-seater convertible if you're about to start a family, so work out what's realistic
• Timing is crucial - As our research shows, if you can afford to wait, there are deals to be had in April and October as drivers take advantage of the new registration plates released in the previous months
• Think outside your local area - While popping down to your local car dealership might seem like the easiest option, it is always worth broadening your search further afield to make sure you are paying the best price for your new wheels
• Set a budget - While many UK adults balance the books before buying a car itself, it's also important to consider the financial commitment that continues after you've driven out of the dealership. Setting a monthly budget for those regular costs such as fuel, road tax and toll payments can help put the brakes on any overspending
• Ticking all the boxes - Make sure you sort out your car insurance and vehicle tax before you take ownership of the car. Just like when you buy a property, you must have insurance in place as soon as you've become the legal owner - even if you're not driving it just yet.

For further information, please contact:

Sainsbury's Bank press office 0131 286 0010 / [e-mail]

Notes to editor:

This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.

Rates and information correct at date of issue.

(1) Sainsbury's Bank commissioned Opinium Research to survey 2,010 nationally representative UK adults aged 18+ between 14 and 17 September 2018. Opinium Research is a member of the British Polling Council and abides by its rules

(2) Based on all Sainsbury's Bank motor insurance new business sales in the 12 month period up to 18th September 2018

(3) Double Nectar points

• Only available to customers buying a new Sainsbury's Bank Car Insurance policy.
• You need to tell us your Nectar card number when you apply, and use this card with each Sainsbury's purchase.
• Double points begin on your policy's cover start date. If you don't tell us your Nectar card number until after your cover start date, double points will begin on the date you tell us.
• Double points stop when the policy is cancelled or you stop paying premiums.
• Each Nectar account can only collect points from one car insurance policy.
• It's only the base points you collect at Sainsbury's that are doubled. If you're taking part in the new Nectar trial, it's the points you get on new Nectar that are doubled. Bonus points won't be doubled, nor will any points from Argos, Habitat, Sainsbury's Bank (including travel money purchases), Sainsbury's Energy or any other Sainsbury's service.
• By the 10th of each month, you'll get a bonus point award equal to the total of your qualifying points during the previous month, up to a maximum of 20,000 points.
• Sainsbury's Supermarkets Ltd award the points from this offer.
• No cash alternative is available. Sainsbury's Bank reserves the right to alter, cancel or withdraw this offer without notice.

(4) The discount is based on information related to you and the transactions you've made with Sainsbury's supermarkets and Sainsbury's Bank using your Nectar card.

(5) 5-Star Rating by Defaqto, the independent financial research company, 2018

About Sainsbury's Bank

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Sainsbury's was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury's Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times. Our products consistently top best buy tables and regularly win awards for quality, price and service.

Sainsbury's Bank plc. Registered Office, 33 Holborn, London EC1N 2HT (registered in England and Wales, no 3279730) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514). Sainsbury's Bank plc is covered by the Financial Services Compensation Scheme (FSCS).