Car insurance: New car sales slump to hit used car supply

Monday, 01 March 2010

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The significant fall in the number of new vehicle registrations over the last couple of years is likely to see car insurance quotes increase for used motors, it has been claimed.

Glass' Guide predicts that the decline in new car sales will give many dealers a headache over the next 12 months, as there will be a shortage in the number of one and two-year-old motors.

Adrian Rushmore, managing editor of the guide, said the real impact of the slump in new registrations will be felt particularly hard in the coming years when people look to secure a used model.

"When new car sales remain depressed for a succession of years, the issue becomes more acute, because future used car supply reduces still further," he stated.

This could have a particularly damaging effect on dealers' profits in the coming years, as one and two-year-old vehicles account for more than 87 per cent of sales.ADNFCR-3010-ID-19642589-ADNFCR

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