Demand for new cars is increasing
Published On 28 August 2007
More and more people in the UK could use car finance deals to buy a new motor this year, research suggests.The AA has found that the demand for new registration cars increased by 22 per cent in the last year - indicating that increasing interest rates had little effect on consumers.
Despite rising fuel prices and new road user charges, 33 per cent of those questioned revealed that they plan to buy a new car in the coming 12 months.
In particular, people over 55 are driving the market for new cars - with 52 per cent planning on maybe using car finance to buy a new motor in the next year. This compares to just 20 per cent of those aged between 25 and 35.
"As interest rates rise, UK consumers are beginning to tighten their purse strings. But our research shows strong consumer demand for new registration cars ahead of September 1st," commented Lloyd East, head of AA Personal Loans.
"Approximately one in three people buying a car in the next year will take out a loan or finance to fund their purchase.
"With interest rates rising, the cost of buying a car on finance is increasing and it is therefore essential that people intending to buy a new or used car shop around for the best deal before heading for the forecourt."
Separate figures from the AA showed that average car insurance premiums in the UK rose to £822 in the second quarter of the year.
