Car market up 86%!
May 15th, 2009 by Richard Aucock
CREDIT crunched motorists are buying ever-more 3 year old cars, as they cut back on spending.
A new survey reveals a DOUBLING of the market for older cars.
More than 41 percent of buyers plan to buy an older car. That’s up from 22 percent a year ago, says American Express Insurance Services.
In contrast, nearly new sales are suffering.
The survey reveals a decrease of over a quarter in car buyers intending to buy a car under 3 years old.
But new car sales have NOT suffered any change in intent! Just under a third of buyers still plan to buy a new car next time round.
It’s the OVERALL ‘intend to purchase’ market that has declined, by over 20 percent.
Head of American Express Insurance Services, Chris Rolland, said: ‘With fuel prices on the increase yet again, and the economic environment still putting a strain on many household finances, people are clearly looking for ways to save money.’
He does fire a warning to car buyers, though. ‘Whilst we understand people are trying to cut back by opting to buy older secondhand cars, it’s worth thinking extra carefully about insurance cover, as older cars can be more prone to problems.’
An interesting viewpoint that car dealers could perhaps consider during negotiations with customers…
Other random facts revealed by the survey, showing how we’re all cutting back, include:
• 34% try to avoid paying to park their cars
• 32% will avoid going on long journeys
• 36% of Londoners will avoid driving in the congestion zone
• 14% will downsize to a smaller car
• 5% will change their car insurance to cover third party only
Tags: credit crunch, used car
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