Following news and figures around the rise in UK car sales, Dr Christian Stadler from the University of Warwick Business School describes why it is that new car sales are growing, but also why used car sales are also on the rise.
Dr Christian Stadler said: "During the financial crisis many people were put off buying a new car, but with growing consumer confidence in the UK they are now going ahead with these purchases. Also, when sales of new cars dropped dramatically during the crisis it means there are now less used cars available. As there are less used cars those which are in the market are sold for a higher price. If a used car is expensive many people think they might as well buy a new car.
"The rise in UK new car sales shows a growing consumer confidence in the UK reflecting a better job market and a more stable housing market."