Car insurance: New car sales revive in January

Tuesday, 16 March 2010

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Sales of new cars on finance in January were nearly a quarter higher than during the same month last year, figures have shown.

Statistics from the Finance and Leasing Association show that motor insurance customers' appetite for used vehicles slumped however, with sales down 19 per cent compared to January 2009.

The body claims that the return of the 17.5 per cent VAT rate and heavy snowfall impacted on sales at the start of the year.

Geraldine Kilkelly, head of research and chief economist at the Finance and Leasing Association, said that while sales lost momentum at the turn of the year, the picture is still relatively positive.

"While we have not seen the record new car finance growth levels witnessed in December, January was still a good month, up 23 per cent on last year. The growth comes against abnormally low consumer new car finance sales in January of last year," she added.

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