Demand for brand new cars on the up

28 August 2007

More and more people are driving brand new cars off the UK's showroom forecourts, a study has found.

According to the AA Deals on Wheels report, demand for new registration cars has increased by 22% in the last year alone.

One in three motorists (33%) claim they plan to buy a brand new car in the coming year, up 7% on last year's figures.

This figure comes despite higher road user charges, fluctuations in petrol prices and increases in environmental taxes on cars.

"As interest rates rise, UK consumers are beginning to tighten their purse strings. But our research shows strong consumer demand for new registration cars ahead of September 1st," Lloyd East, Head of AA Personal Loans, said.

"This suggests that reasons for buying a car are not only influenced by price at purchase. AA Deals on Wheels reports show that drivers are increasingly concerned about the environmental impact, running costs and practicality of their vehicles."

However, it seems the popularity of brand new vehicles is not reflected in that of the second-hand car market, with the number of people hoping to purchase a used car dropping 16% on last year's figure.

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