Brits most commonly take out personal loans when they are planning on purchasing a new vehicle, the latest research shows.
A study from Alliance & Leicester Personal Loans reveals that around 25 per cent of the UK population have used personal credit to purchase a used car, while a further one in eight have taken out such products to buy a new set of wheels.
And around three per cent of the UK population have used personal loans to make a caravan or motorcycle purchase.
The second most popular reason for taking out a personal loan was for debt consolidation purposes the study showed
"It seems that a lot of people are using a personal loan to buy a car, with 37 per cent of our borrowers taking out a personal loan specifically for that reason," Richard Al-Dabbagh, Alliance & Leicester senior personal loans manager, said.
"This isn't too surprising as the finance deals offered at most car showrooms do not compete with [high street] rates.
Mr Al-Dabbagh continued by saying that he found it a "little more surprising" that increasing numbers of Brits were taking out personal loans to make caravan purchases - and he speculated that this might be for environmental reasons, as people start to turn "their backs on airport queues".
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