A post-Budget poll has revealed that 50% of people thinking about buying a new car are now significantly less likely to buy a high-emissions vehicle.

Direct Line Car Insurance commissioned Opinium Research to conduct the survey of over 2000 UK adults to assess the demand for high-emissions vehicles in the wake of the government’s new vehicle tax regime.

A further 14% of respondents said that they were ‘a little less likely’ to purchase a petrol-guzzling vehicle like a four-wheel drive. In all nearly two thirds of the total said that their future vehicle buying decisions were going to be affected by the tax hike.

Men in general and drivers over the age of 55 were most likely to be put off buying high-emission vehicles in the future. Of those aged between 18 and 34, only 44% said their buying decisions would be affected by the levy.

Jennifer Culley, of Direct Line, said that the shift in public opinion demonstrated that by hitting people’s pockets, the Chancellor has made a difference to vehicle buying behaviour. “Darling has made people think twice before heading to the forecourt”.

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Motor industry analysts have indicated that the depreciation rates for cars are getting worse. Low confidence over the economy together with the introduction of green taxes and low emission charging zones has had a negative effect on the value of cars at resale. 

A report from the market analyst Eurotaxglass’s has predicted a reduction in the value of used cars by 8% by the end of the year.  

It is no coincidence that the smaller more fuel efficient car will hold its value more than the larger family sized car and the 4×4. 

A brand new car loses in the region of 12% the moment it leaves the showroom and this news will add to that loss percentage wise in the family sized and 4×4 markets.

 The recent credit crunch as well as the slow in the housing market has affected the motor industry as it has always done in recent years. Whenever the housing market slows or the economy shows signs of weakness, the motor industry always suffers.

The consumer is being advised to look at resale value when buying a car to avoid losing money when it comes to selling the vehicle in the long run.

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