Cover news
23/02/2011
A good car insurance quote and finance
The threat of rising fuel prices combined with VAT increases has made it extremely difficult for motorists who are buying new and second hand cars, and searching for a cheap car insurance quote as well, to do so without having to choose a financing option.
According to the Finance and Leasing Association (FLA), last year over 50% of new cars purchased were bought with car dealer finance, which made it the leading finance option in 2010. This is an increase from 45.8% in 2009 and means that in 2010, five hundred thousand people bought their new vehicle using a dealer finance package, with the total sum of £6.4 billion put forward in funding.
In the used vehicle market for 2010, £5.9 billion worth of funding was provided by the motor lenders to 635,000 people.
Finding a reasonable price for car insurance, while navigating VAT increases has started to prove difficult for many motorists, and this is a key factor which has made car buyers across all markets start to take advantage of any competitive deals on offer.
Paul Harrison, the head of motor insurance at the FLA said, "While dealers had a good year in 2010, they are cautious about the future. We had previously forecast that the VAT rise in January might lead to a rush of sales in December, as consumers tried to beat the rise, as it did ahead of the VAT increase in January 2009.
"However, this did not happen. Consumer confidence is at its lowest for around two years, and this is reflected in December's figures, which showed a fall in the total number of new cars bought using dealer finance, while used car sales were flat."
To avoid spending too much money on a vehicle's cover, a motorist should search carefully for a car insurance quote which suits their personal needs, taking into account how often they drive, and whether their car is new or second hand.