Car insurance customers told demand for gas-guzzlers remains buoyant

Tue, 08 May 2007

In spite of increasing awareness of environmental concerns among car buyers, the latest second-hand sales trends reveal that demand for multi-purpose vehicles remains buoyant.

An analysis from business research specialist Experian's automotive division has discovered that overall sales of used cars fell 0.8 per cent in 2006, car insurance customers may be surprised to learn.

However, multi-purpose vehicles defied this downward trend with 16 per cent more sold in the last three months of 2006 as opposed to a year earlier.

Over the same time period, sports utility vehicles also experienced a 3.1 per cent sales spike, while 2.7 per cent more second-hand sports cars were bought.

Kirk Fletcher, managing director of Experian's automotive division, commented: "Despite larger vehicles, such as SUVs [sports utility vehicles] coming under heavy criticism last year for the harm they cause to the environment, the downsizing that had been expected does not appear to have taken place."

However, Mr Fletcher added that Gordon Brown's latest Budget could potentially have an impact upon sales of fuel-intensive motors, car insurance policyholders may like to know.

Among the fiscal changes announced in the so-called green Budget, Mr Brown announced a near doubling of fuel tax for gas-guzzling engines, effective from April 2008.

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