The scrappage backlash is now in full swing it seems. August saw a big increase in the number of used cars sold in the UK. Could soaraway motor insurance premiums be the reason why?
Now all those ‘crazy’ incentives for purchasing new cars have come and gone, Britain’s drivers are succumbing once again to the allure of the more mature motor.
The Finance and Leasing Association has reported a 21% year on year increase in the number of used cars financed by dealers during August, speculating that buyers were “perhaps attracted by lower prices as well as the chance to lower their car insurance premiums.” During the same period new cars sales were down by 12% private buyers and 26% to businesses.
FLA guy Paul Harrison explained the factors influencing the swing in purchasing behaviour: “Consumers have returned to the used car market where lower prices are attractive and mean that buyers need to borrow less.”