Despite fuel prices having reached an all time high in the UK, the most fuel inefficient vehicles seem to be thriving in the used car industry.
Contrary to what you might expect, premium car sales are positively thriving!
Adrian Rushmore, Managing Editor at Glass’s comments on the unexpected trend “Given the series of fuel price increases, it is perhaps surprising that there has not been any kind of backlash in the premium sectors this time around”.
Rushmore goes on to say that 4×4’s have exceeded all other vehicles in terms of holding their value. In fact, Glass’s claim that while the family car has enjoyed a 2% increase in value since January, 4×4 vehicles have doubled this percentage increase!
And it’s not just the large 4×4’s that are seeing this unprecedented increase, supercars and luxury cars are also performing well in the used car sector.
So with the pumps currently selling fuel at record levels and the prestige car sector outperforming the market, leading industry experts are asking why.
Rushmore believes the success in this sector, despite fuel prices reaching an all time high, can be attributed to the following, “Firstly, there is less of the ‘feel-bad’ factor that pervaded the economy and the market in the summer of 2008. Back then there was also an added buying disincentive in the shape of the large VED increases planned for the following April and plentiful used car supply”.
He goes on to suggest that although fuel is at an all time high, the latest increases came about very gradually and so may not have even registered with many motorists yet. He also believes that motorists could be choosing to ignore the fuel price issue altogether and plough ahead with their purchases regardless.
Rushmore concludes by advising motorists that when making such an important purchase they should think about how fuel costs could increase over the next few years, and the impact this could have on their finances.
This article was brought to you by Think Insurance, the specialist motor trade insurance provider.