Industry News from Yes Insurance

Motorists planning to buy a cheap second-hand car so they can cut costs by opting for third party insurance may want to buy sooner rather than later, if new figures are anything to go by.

According to statistics from the Retail Motor Industry's Society of Motor Auctions (SMA), used vehicles are proving very popular at the moment.

They showed demand for such models rose 20 per cent in January and cars sold in 2009 are fetching significantly more than those that went under the hammer towards the end of 2008.

David Scarborough, chairman of SMA, predicted people would carry on investing in second-hand models in the current economic climate.

"With new car sales likely to continue at a much slower pace than previous years, the used car at auction will continue to be in big demand," he said.

Third party insurance may be a more cost-effective choice than comprehensive cover for people who do not pay very much for a second-hand vehicle.

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