5 March 2007
Research from car insurer the AA has revealed that one in four motorists are planning to buy a new car this year, with the average consumer prepared to shell out £10,136.
This expenditure figure is up nearly £800 compared to the £9,342 drivers were prepared to pay for a new motor in 2006, hinting that drivers are more prepared to pay more for a quality car.
It appears the fact that running a car costs as much as £5,500 per annum is not deterring consumers from buying a car, with demand for these showing an increase from 27% to 29% on new cars and from 29% to 44% for nearly new.
Male motorists were found to be the main driving force behind the vehicle market with 29% of the men who were polled by the AA stating that they planned to buy a new car this year. By comparison, 20% of women were looking to update their vehicle in the next 12 months.
Lloyd East, Director of AA Personal Loans, commented: "We have now been tracking the new and used car market for over a year and the findings show that despite motorists enduring difficult times - with increases in the price of petrol, the threat of road pricing and tax hikes - it's clear these cost changes have done little to dampen the demand for cars."
Mr East also stated that he believed consumers were taking a more long-term approach to buying a car as modern cars last up to 20 years. He said that since cars lost up to a third of their value as soon as they left the show-room, many motorists were looking to get as much "car" for their money as possible.
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