People are using PPI payouts for new car purchases.
The number of people searching for new car deals in the UK appears to be continuing along its upwards trajectory, judging by new figures.
Released by the Society of Motor Manufacturers and Traders (SMMT), the research showed that sales of these vehicles climbed for the 18th month in a row in August – and there are a number of reasons to explain this movement.
The payment protection insurance (PPI) scandal – which saw consumers mis-sold the cover when it did not benefit them to have it, or sold it without even knowing about it – has made national headlines over the last couple of years. This episode resulted in many people being paid large amounts of compensation –
and it is believed that some individuals are using the cash to pay for big-ticket items such as new cars.
People are also thinking more about how much it costs for them to run their car once they have bought it, which is why drivers are increasingly turning their attentions to the benefits to be had through fuel-efficient vehicles.
Because modern cars place extra focus on this aspect of motoring, more and more individuals are choosing to buy new as opposed to opting for second-hand motors.
The SMMT figures revealed that a total of 65,937 new vehicles were registered in August, which represents a 10.9 per cent climb on the figures recorded for the same period one year earlier.
As a result, the total number of new motors that have been registered so far in 2013 is 1,391,788, marking a 10.4 per cent increase compared with the months between January and August in 2012.
Mike Hawes, chief executive at SMMT – which positions itself as the voice of the motor industry in the UK – said: "Private and fleet buyers are clearly capitalising on attractive deals and new technologies against a backdrop of increasing economic confidence. The August rise bodes well for the new 63 plate."
Posted by Fred Mason