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Warranty Direct Credit crunch stopping people buying new cars

September 11, 2008

Warranty Direct Credit crunch stopping people buying new cars

People are keeping their cars for longer meaning sales of extended warranties have grown, according to Warranty Direct.

Experts say that because of the credit crunch and pressures on household finances Britons are no longer buying new cars as often as they used to.

In fact, a recent poll by YouGov revealed that one in two drivers admitted they would be holding on to their cars for longer than normal because of financial strain.

Duncan McClure, managing director of Warranty Direct, said that even with the cost of an MOT on an older car, it would still be much cheaper than buying a new model.

"In today’s economic climate, it’s the only sensible thing to do," he added.

Warranty Direct has reported a 28 per cent increase in the number of people requiring mechanical breakdown insurance on four-year-old vehicles.

Some Brits are still purchasing new cars and the credit crunch is being blamed for a rise in the number of people haggling over prices, according to CreditExpert.

However, only 16 per cent of those asked said they would haggle over insurance.

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This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.

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