Cars 'no longer status symbols'

May 13 2009

New research has suggested the onset of the recession in the UK has resulted in cars no longer being considered as status symbols.

Confused.com has claimed motorists no longer consider cars to be important in maintaining their reputation and drivers are instead content to save their pennies by sticking with their existing vehicle rather than splashing out on the latest model.

The study found 36 per cent of motorists cited limited budgets as the biggest factor in deciding what car to buy.

"Motorists are being hit hard by the recession, with fluctuating fuel costs and fuel duty increases to boot. It seems that they are looking for further ways to reduce their running costs, and our research shows that now even the vehicle itself is the latest to suffer at the hands of the financial squeeze," said Will Thomas, head of motor insurance at Confused.com.

However, the recession could encourage more people to buy used cars, as a way of cutting costs on purchasing a new vehicle.

Recent figures from Glass's and the British Car Auctions organisation have suggested the average price of a used car is continuing to rise as demand increases in the sector.

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