Used car values 'putting motorists off'

Oct 3 2008

Current conditions within the used car market are discouraging a number of people from buying a new vehicle, it has been claimed.

Research by esure discovered that 71 per cent of motorists are no longer considering buying a new car in an effort to cut back on outgoings.

The company found that a further 58 per cent of respondents said the fall in value of used cars was a factor influencing their decision to hang on to their existing vehicle for longer.

Meanwhile, nearly half of those surveyed said they were considering trading in their vehicles to become a one-car household.

Mike Pickard, head of risk and underwriting at esure car insurance, said it was "no surprise" that UK drivers are considering reducing the number of vehicles they own, given current financial conditions.

"The fact that they're also keeping their cars for longer is proof that UK drivers are becoming increasingly conscious of keeping motoring costs down," he added.

British Car Auctions recently reported that average used car values fell by £200 in August to £4,765.

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