Free car insurance 'makes new vehicles appealing'

Posted :29-01-2008

Incentives such as free car insurance, increased warranty cover and zero per cent finance deals make new cars more appealing, according to Experian.

A study by the analytical services organisation suggests that younger cars - those which are less than three years old - suffered decreases in sales of eight per cent in the third quarter of 2007.

This is the biggest drop in sales for younger cars during the three-month period since 2000.

Kirk Fletcher, managing director at the automotive division of Experian, comments: "Increased warranty cover, free insurance and 0 per cent finance deals on new cars are influencing the decision to buy a new car over a nearly-new one.

"The gap is closing and nearly-new cars no longer hold the appeal they once did," he concludes.

Meanwhile, it was recently reported by Fair Investment Company that an increasing number of environmentally-friendly car insurance policies are being offered by providers.


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