More than three out of four (77%) dealers say that rapidly rising insurance costs mean that some cars have become difficult to sell.
Startline’s December Used Car Tracker also reports that half (50%) think that some cars have become effectively uninsurable, so are probably unsellable.
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The research also reports that 23% think that it has become well-known among both trade and consumers that certain cars are easy to steal.
Paul Burgess, CEO at Startline Motor Finance, said: “It’s been reported that car insurance premiums have risen by an average of 48% year-on-year*, which is clearly a substantial increase during a cost of living crisis when personal finances are under considerable pressure.
“Especially, it appears that some cars are being hit much harder than others. Insurance for electric vehicles generally has risen ahead of the market thanks to factors such as parts shortages and storage costs but there are also some petrol and diesel models that the trade and the general public know are targeted by thieves and are perceived as easy to steal. Insurers are either charging huge premiums for those cars or refusing cover completely.”
However, Startline’s research also shows that 33% of dealers believe people rarely think about insurance when they buy a car and 8% of motor retailers try to alleviate the problem by having their own insurance options in place.
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By GlobalDataPaul added: “Historically, it is probably true that most people have bought a car and then looked at insurance costs although, given the current situation with rising premiums, that situation may be changing.
“It’s also encouraging to see some dealers proactively looking to help car buyers with insurance by having their own schemes in place. Increased dialogue and co-operation between the motor trade and insurers is one way of helping to keep premiums under control.”
The Startline Used Car Tracker is compiled monthly for Startline Motor Finance by APD Global Research. This time, 301 consumers and 60 dealers were questioned.
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