Motoring market 'to change' due to credit crunch

May, 16, 2008

Vehicles with larger engines are likely to become less popular as the credit crunch continues, it has been suggested.

Information provider Experian notes that while such automobiles have remained popular despite pressures such as rising interest rates and environmental concerns, they are likely to be affected by a squeeze on consumer spending.

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Kirk Fletcher, managing director of the automotive division of Experian, explains that the sports car, MPV and 4 x 4 segments of the motoring market have seen pockets of growth, including a growing demand for diesel versions of the vehicles.

However, "the introduction of higher tax on these vehicles and the consequences of the global credit crunch, highlighted in the latest regional planning report, could finally be the factors that push these segments back," he adds.

In related news, the British Insurance Brokers' Association recently suggested that consumers shop around for the most competitive deal possible when looking for a car insurance policy.

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