UK Car Finance Benefits From Driver Unwillingness To Part With Cash


Two-thirds of drivers responding to a recent Moneysupermarket.com survey said that increasing auto insurance costs and record-breaking fuel prices will affect their next car purchase. Most of them said they would consider compromising on the vehicle they would normally purchase.

This deliberate move to reduce costs could make car finance more popular because it reduces the immediate financial impact.

Fifty-five percent of respondents said their next car will be more fuel-efficient. Over one-third will opt for an auto that features a lower road tax rate or is less expensive to insure. Hire purchase and personal contract purchase pcp could make the financial impact of car buying less severe.

However, this may not even be enough for the nearly one million UK motorists who plan to sell their vehicles and not purchase a new one.

Moneysupermarket.com auto insurance expert Pete Harrison stated that he was not surprised by the results of the recent survey. According to an analysis conducted by the company, vehicle insurance premiums experienced a 31 percent increase in 2010 and a similar price increase is occurring in 2011.


Combine this with rising fuel costs and many households are under severe pressure when it comes to spending.

Families throughout the UK are rethinking their vehicle needs, said Mr. Harrison. Purchasing a more efficient, lower priced car is one solution. He also recommended practices like avoiding short trips, driving more efficiently, and car-sharing.

Co-workers who live near each other can substantially reduce their vehicle fuel and maintenance expenses by sharing rides to work.

Mr. Harrison also explained how smart shopping can save consumers cash. Comparison shopping to find the best car insurance policy at the lowest rate is recommended over automatically accepting the renewal quote from the current insurer.

According to Mr. Harrison, this could save consumers approximately £319 per year.