31 January 2008
British motorists are turning away from used cars in preference for buying new, credit raters Experian have said.
Its latest quarterly used car sales showed that re-sold cars manufactured less than three years ago - traditionally the high end of the market - sold eight per cent less, year on year.
In total, almost two million used cars were sold from July-September last year, three per cent down on 2006.
A key driver of this trend, Experian said, was the increasing numbers of car insurance deals on offer for new car drivers.
Managing Director of the firm's automotive division, Kirk Fletcher, commented: "New cars are relatively cheaper than they used to be, but customer feedback to our dealer clients has been about the strong incentives offered alongside the new cars - sales have therefore seen an upward trend.
"Increased warranty cover, free insurance and zero per cent finance deals on new cars are influencing the decision to buy a new car over a nearly new one."
Experian also said that the five successive rises in interest rates from the Bank of England over 18 months also hit car sales, due to borrowing becoming more expensive.
© 2008 Adfero Ltd
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