Car Registration Market to Gather Speed?
Demand for new registration cars has soared 22% in the last year as interest rate hikes have failed to put the brakes on in time for the 57 number plate, according to new research from AA Personal Loans.
2007 has been a tough year for UK motorists with road user charges, petrol price fluctuations and increasing environmental taxes on cars. But the AA Personal Loans 'Deals on Wheels' reports show that motorists haven't been put off brand new car purchases in the year ahead. In fact, 33% of motorists say they plan to buy a brand new car in the next 12 months, compared to 26% in the same period last year.
Recent reports have suggested that the real cost of cars has actually fallen by 26% in the last ten years, which could be impacting people's decisions to make an investment in new wheels. However, the second-hand car market isn't seeing the same impact. 36% of people intend purchasing a second-hand car less than three years old in the next 12 months, a 16% decline when compared to the beginning of 2007 (44%).
Meanwhile, the new car market is being driven by the so-called 'grey' pound, with 52% of the over 55's looking to buy a car in the next 12 months, compared to 20% of 25 to 34 year olds. Younger people are more likely to buy a used car.
Drivers in the South of England though are now taking the slow lane when it comes to buying a new car. Just 26% say they'll opt for a brand new motor in the next 12 months. On the other hand, 41% of Scots intend buying new.
