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Motor insurance: Used car sales 'lead industry out of recession'

03 Sep 2010

New research has found that the increasing number of motor insurance customers opting to buy a second-hand car is helping to lift the UK's motor industry out of recession.

According to findings published by British Car Auctions (BCA), there is clear evidence that sales of used vehicles played a key role in the car industry's recovery last year and continues to help matters in 2010.

While volumes fell in both new and used markets last year, values were found to have held up well, with second-hand vehicle prices hitting record levels – exceeding a combined worth of £34 billion for the first time.

"The UK used car industry has got better and better at meeting the needs of motorists. It is this ability to provide a broad range of products at every price point … that we believe sustained this crucial revenue stream in 2009," explained Tony Gannon, communications director at BCA.

Last week, price analysts at CAP urged motor insurance customers to buy used cars now, as average values were found to have dropped below last year's price lows for the first time in 12 months.

Posted by Judith Stevenson