Car loans 'popular in times of financial pressure'The used car market will continue to weather the effects of the credit crunch and this could mean more people opting for car finance, one expert has suggested.
The used car market will continue to weather the effects of the credit crunch and this could mean more people opting for car finance, one expert has suggested.
Commenting on predictions by EurotaxGlass that the value of used cars could drop by around £400 in 2008, the British Vehicle Rental and Leasing Association (BVRLA) said that pressures on personal finance will only boost the second-hand vehicle market.
John Lewis, BVRLA director general, said: "When there is financial pressure on buyers they tend to move away from new and nearly new to slightly older, but well maintained cars and to fund them via dealer finance rather than unsecured bank loans."
He added that he was surprised by EurotaxGlass' predictions of a significant drop in prices and said that others in the industry had not foreseen such a shift.
Last week, the company said that as a result of a more delicate economy those looking to purchase a used car would see average used car prices drop as dealers do whatever they can to encourage people to buy, according to Auto Industry.
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