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Drivers up expenditure on new motors by a quarter, car insurance customers told

07/06/07

New car prices have risen by almost a quarter in the last six years, according to the findings of an independent study that may be of interest to many car insurance customers.

In a research project from business intelligence specialist EurotaxGlass's, it has been revealed that motorists decided to shell out an average of £17,100 on a new motor in March 2007.

To put this into context, the outlay is 23.02 per cent higher than the £13,900 typically spent on cars straight off the production line in 2001.

Meanwhile, the used car sector has also experienced a sustained period of growth over the past six years.

The study reveals that the amount of money spent on a three-year-old used car has risen by 16.42 per cent from £6,700 in 2001 to £7,800 six years later.

Commenting on the figures, Adrian Rushmore, managing editor at EurotaxGlass's, has noted that the rising popularity of premium motoring brands may have contributed towards the rise.

"Aspirational brands like BMW, Audi and Mercedes have enjoyed significant market growth as customers switch allegiance from traditional volume-brand manufacturers," he said.

"In addition, the lure of new diesel technology has also proved to be irresistible to many."

As well as paying for a new motor, car buyers must also arrange car insurance cover and road tax before they are legally allowed to drive the vehicle on UK roads.

They may soon have to pay money to use certain routes as well.

Last month, transport secretary Douglas Alexander wrote on politics.co.uk about the need to consider road pricing as a means of cutting congestion on the nation's roads.