uSwitch: 77% of drivers reducing car purchasing

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uSwitch: 77% of drivers reducing car purchasing

Tue 4th Nov 2008

A majority of drivers are reducing or cancelling car purchase plans due to the current economic climate, new research by uSwitch.com has found.

The comparison and switching website discovered that 77 per cent of motorists are either reducing the amount they will spend on their next car purchase or are not buying at all.

In addition, 15 per cent are going to cut the amount they would spend by nearly £3,000 as the economy declines.

Almost half (47 per cent) of motorists plan to keep their current car longer because of financial pressures and on average intend to keep their car for 2.5 years longer.

Ashton Berkhauer, insurance expert at uSwitch.com, warned that while consumers could be helped by such tactics, the car sales and manufacturing industries would suffer.

He added that the recession could bring more uninsured drivers and fraudulent insurance claims.

Last month, Sainsbury's reported that the annual cost of running a car had increased by around 13.55 per cent compared to last year, hitting £2,543.85 annually.

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