Less new car loans customers in Europe

 16/10/2007

Steve Baillie, head of loans at the bank, said a large portion of consumer borrowing is used for car finance and that many people were considering loans for a new vehicle within the next six months.

Sales of new cars in the UK may be on the increase but it seems European sales are decreasing.

According to Reuters, the UK and France recently reported that sales for new registration cars had been good for September many other EU states are recording sliding sales.

The news agency reports that year-on-year the Spanish market had witnessed a drop in sales of around 7.7 per cent and that German registrations had fallen by 11 per cent.

The fall in the German market, however, was attributed to a 2006 rush on car purchases ahead of a January 2007 VAT increase.

It was found that overall new European registrations dropped by 1.5 percent in September compared to 2006 - in western Europe they decreased by 2.1 per cent.

Last month a spokesman for Sainsbury's bank said that many UK consumers were enjoying new and used car finance to secure a vehicle.