Industry News from Yes Insurance

Drivers in the UK could be set to pay more when it comes to buying cars at auction in the future, a motor industry body has claimed.

Research from the RMI Society of Motor Auctions (SMA) has found that prices will have to go up at auction houses in order to accommodate new economic pressures.

According to Louise Wallis, head of the SMA, low costs can only be sustained when turnover is high - blaming this year's credit crunch for the increase.

Indeed, motorists may already be feeling the pinch of greater motor costs with petrol prices and car insurance bills going up.

"Energy and business rates have both increased, as has the cost of insurance, labour and consumables. The 50 per cent increase in fuel prices since December last year has also made a significant impact on margins," said Ms Wallis.

Meanwhile, Easier has cited research showing that 64 per cent of UK drivers will be looking to pick up a used car next time they buy.

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