The latest Regional Planning Report from Experian, the global information services company; forecasts a further downturn in house prices and an increase in unemployment for the first time since 1992, the UK could start seeing a change in demand for 4x4s.
Despite rising interest rates, growing debt and environmental concerns over the last few years, larger engine cars, such as 4x4s, MPVs and sports cars, have managed to retain their popularity and have continued to grow in sales. However, with a squeeze on consumer spending, this trend looks set to change quickly.
The report forecasts UK GDP growth to slowdown to 1.8 per cent in 2008 and further still to 1.5 per cent in 2009.
Kirk Fletcher, Managing Director of Experian’s Automotive division, said: “A car is arguably the second biggest purchase a consumer will make and financial concerns were already affecting used car sales, which have been falling since 2005. More and more consumers have been delaying their car purchase decisions.
In the coming years, the least polluting cars are likely to become the top sellers.”
Faye Sunderland
