Industry News from Yes Insurance

The UK's used vehicle market has lost around £2 billion over the last six months, according to new research.

Sainsbury's Finance has found that plans to backdate road tax, increases in fuel costs and the credit crunch have all resulted in fewer car and van drivers heading to dealerships.

Indeed, the financial pinch could be leading motorists to take risks by taking out cheaper, less comprehensive car or van insurance policies.

The company added that £22.76 billion is to be spent on used vehicles between March and August this year - down from £24.87 billion six months earlier.

"Sellers need to make sure they know the market value of a vehicle to ensure they get a good deal when they come to sell their existing car, or indeed come to buy a new one," stated Steven Baillie, head of Sainsbury's Loans.

Meanwhile, GE Money's Irish Used Car Index shows that the price of second-hand cars in the country is falling for the first time year-on-year since 2000.