The car industry is suffering very badly globally, and in the UK large manufacturing bases involved in car assembly and production and all the associated small businesses that play support functions, have brought unemployment and lay-offs to towns as far apart as Swindon and Gateshead.
The Government has stepped in to help again, this time to support multinationals rather than the ailing car industries of the seventies and early eighties, and although we don’t agree with underwriting failing foreign businesses, the social and economic investments in these areas must be protected.
So with new car production ground to a halt and demand stagnant, it is surprising to see that the second hand market is experiencing a mini upturn. Prices have been dropping steadily on used cars in parallel to the housing slide, however recent activity has seen much larger market movements with the volume of used car sales up. This surge has seen a response from the standard car insurers, who seem to be the only companies whose TV advertising campaigns have been unaffected by the recession. This market would be even more buoyant if the availability of loans for used cars was not as restricted as it currently is.
One growth area has recently been classic car insurance. These days many cars as young as ten years old can be considered classics and it is worth getting some insurance quotes from a online classic car insurance specialist.
Classic car insurance policies often provide better cover as the risk is assessed for the particular vehicle and the premium assessed against a known sum insured – what you’ll get back if you write the vehicle off.
These days even 1980′s Ford Escorts complete with furry dice are considered Classic Cars.