Industry News from Yes Insurance

Those affected by the credit crunch in the UK should consider picking up an older car next time they approach the market, it has been claimed.

According to Car Parts Direct research, buying a new car or van is the "worst investment most people will ever make".

The company has stated that within three years of ownership, a £15,000 vehicle will lose nearly half of its original value.

However, an older vehicle may result in a cheaper car insurance policy, while the body added that they can be easy to maintain.

"Even the more expensive parts that could fail such as shock absorbers, drive shafts or a steering rack rarely cost more than a couple of hundred pounds - this is peanuts compared to financing a new vehicle," said company spokesperson Mark Cornwall.

Set up more than 25 years ago, automotive firm Car Parts Direct is based in the Midlands.