The number of people buying cars is set to increase
The number of people buying cars is about to increase, according to reports from the AA.
However, people are planning to spend less money on a car than previously. Of those questioned, 32 per cent said they are planning to spend between £5,000 and £10,000 on a vehicle this year, which marks a three per cent drop on 2009.
More people are also planning on spending less than £5,000 on a car this year, with 23 per cent looking in this price bracket compared to 19 per cent the year before.
Mark Huggins, director of AA Financial Services, said: “I have no doubt that the extension of the car scrappage scheme to the end of February 2010 is helping – but if this isn’t extended again new car sales could slow down again.”
Taking out a new insurance policy may be a priority for many this year, following the bad weather seen recently. The AA reported that on December 21st last year it received 644 claims.