Fewer people planning to buy cars

There has been more bad news for the auto industry as latest figures reveal a fall in the number of people planning to buy a car between March and August this year.

And those 6.33 million who are in the market, down from 6.85 million in the last six months, are cutting their budgets from an average £7,239 to £6,683. This will reduce the total amount spent to £42.3 billion compared with £49.6 billion previously.

The survey by Sainsbury's Finance says that 1.42 million people will spend £10,000-plus on a car, with 327,000 paying £21,000 or more.

A fifth of people in the West Midlands plan to change their car - up 8%. But just 4% of East Anglians are in the market, a big fall on the previous 30%.

Meanwhile, the Society of Motor Manufacturers and Traders (SMMT) has urged government for immediate action on outstanding proposals aimed at stimulating market demand.

It says: "The clearance of state aid is an important step in sustaining the UK motor industry, but the need for short-term measures to kick-start demand in the market remains critical."

After approval by the European Commission, automotive companies can now access £1 billion of UK loans and loan guarantees and the £1.3 billion of European Investment Bank (EIB) funding.

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