Motorists ‘raid savings for new cars’
Motorists are digging into their savings to pay for new cars, it has been revealed.
Those shopping for car bulbs and wiper blades may be interested to learn that a recent survey by the AA found that 47 per cent of those planning to buy a new vehicle in the future intend to use their savings to do so.
Mark Huggins, director of AA Savings, said many families are reluctant to take on debt during the economic downturn.
"A car would have been a long way down the list of family priorities, until the launch of the government’s car scrappage scheme which provides £2,000 towards a new car in exchange for one over ten years old," he added.
Although their has been some criticism of the scrappage initiative, Mr Huggins pointed out that drivers buying new vehicles will have fewer unexpected repair bills and lower fuel expenditure.
In related news, automotive data provider EurotaxGlass’s suggested last week that some people are cashing in on the scheme by purchasing new vehicles and selling them immediately.
