Car loans news: VED changes bring confusion

Nov 26 2008

Secured Car Loans customers are still confused as to how vehicle excise duty (VED) is to be administered, an industry official has claimed.

Responding to changes made by the chancellor in this week's pre-budget report, HPI's used car valuations expert Martin Keighley welcomed the move to boost confidence.

He said the reduction in VAT would help to improve sales of new and used cars and make it easier for car loans customers to upgrade their vehicles.

However, the full effect of the decision to delay VED increases for older vehicles remained to be seen, he suggested.

Mr Keighley predicted that, despite the chancellor's new measures, values of both new and used cars could fall if the economy does not recover.

"Unemployment will probably continue to rise, further reducing demand in the used market, and new car stocks are too high. These are the ingredients for a recipe of falling used car valuations," he concluded.

Used car values fell by £278 in October to an average of £6,002, according to Manheim's monthly market report.

More from Financial and Loan News

---

---

---

---

---

---

---

---

---

---

---