The tough economic environment has meant many people have put off those expensive buys but it might be getting to a point where you need, rather than want, to pay out a big purchase – and it might be time to use your home's equity to get by.

One such big expense might be a car. You may have gone through the last year or so crossing your fingers each morning, hoping your old car would not die. But sometimes you have to admit defeat and seek out a newer mode of transport. But you are not alone – the latest figures from the Sainsbury's Finance has found a sharp increase in the number of people planning to buy a car in the six months to August this year.

It has found a 47% increase in the number of people planning to purchase a brand new, used or pre-registration car. 7.56 million people anticipate doing so between March and August this year compared to just 5.14 million people in the six months to February 2010. Sainsbury's says this is a collective spend £49.1bn in the coming six months.

That's a lot of money. For most people, finding maybe £5,000 or even £10,000 to buy a car might be a stretch. Steven Baillie, head of loans at Sainsbury's Finance, says: "There are obviously concerns that continued financial instability as well as uncertainty over the coming election will put people off buying new or used cars."

But in this day and age a car is a necessity and without it your life would be impossible – getting to work, getting the kids to school, getting to the supermarket – it's a big spend, but it's a need more often than not.

If you need to splash out thousands in the next few months, talk to your broker about using some of your home's equity to fund your new car. It's a sensible way of raising much-needed money and it needn't cost you the earth to pay it back.

SOURCE: Sainsbury's Finance, 30/03/10

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