Car buyers borrowing more than £100m a day

HOUSEHOLDS are borrowing more than £100million a day on finance to buy cars, triggering fears of another dangerous debt binge.

A report yesterday revealed car finance is booming again, with drivers putting more than £15,000 on credit on average.

Motorists borrowed a total of £3.17billion to buy new and used cars in May, or £102million a day – a 13 per cent rise on the same month last year.

In May, 209,547 cars were bought on credit, according to the Finance & Leasing Association. In the twelve months to May, £35.7billion of credit was extended to buy almost 2.4million cars.

It comes amid concerns about rising debt levels, and that the credit boom being driven by aggressive car dealers who are desperate to close a sale.

Baroness Altmann, a consumer campaigner and former pensions minister, said: ‘It is frightening to see more and more people relying on credit.

‘Lots of people are already struggling to make ends meet and may not be able to afford the repayments when interest rates rise.’