Car credit customers considering a downsize

A survey by the RAC has discovered that over one third of UK drivers are proactively looking at downsizing their cars in order to make the best use of car credit and to save money overall.

The motor trade has experienced a stormy six months and is hardly likely to welcome the news. That said, it is unavoidable in a tough economic climate that car credit customers are not feeling confident of being able to afford bigger luxurious vehicles.

The logic behind car credit customers' intentions to downsize is straightforward: the rising cost of fuel and car insurance, increased road taxes and a general squeeze on disposable income because of rising living costs and inflation eating away at savings.

Many drivers are also very concerned about the increasing number of uninsured drivers which cost the car industry - and the taxpayer - hundreds of millions of pounds every year.

However, amongst all the doom and gloom, people are still applying for car credit to purchase vehicles. This is largely explained by lack of alternative transport solutions. Public transport is not widely available in many parts of the country, and where it is available it is becoming increasingly expensive.