Latest News

Lines are open
Mon/Fri: 8.30am - 6pm

0800 038 0830

Second-hand car purchases falling

Monday December 7th 2009

Consumers are becoming less likely to buy second–hand cars because the Government’s car scrappage scheme is making new cars more accessible.

Research by Sainsbury's Finance found that only 8% of adults planned to buy a used car between September this year and February, a drop of just under 2% on the previous six months.

Also, those that said they were looking to buy a used car were planning to spend less on it than previous buyers at an average £5,323.

The most planned purchases of used-cars are in Scotland, with 15% of adults looking to buy in the next few months. The lowest figure is in the north west, with just 3%.

Steven Baillie, head of Sainsbury's Loans, said: "Our research suggests that less people intend to buy a second-hand car in the coming months, which may be partly due to the Government's car scrappage scheme encouraging more people to buy a new car instead.

"Indeed, we estimate that the scrappage scheme is directly responsible for a 37% increase in the value of personal loans taken out to purchase cars since its introduction.

"It can of course be significantly cheaper to buy a second-hand car, but buyers and sellers could save even more money if they do their homework."

Copyright © Press Association 2009

If your car gets written off, helpucover will pay the difference between your car insurers valuation at the time of the accident or theft, and the car's value when you purchased Gap Car Insurance.