Car cost pressures resulting from recession

19/05/2009

Recession conditions have got so bad that many drivers are considering swapping their cars for mopeds or motorbikes, figures from the Post Office claim to show.

A poll conducted by the organisation found that 13 per cent of British motorists - almost five million people - would be prepared to make the switch.

What's more, the single most popular reason for the move was fuel efficiency - with 31 per cent believing that they would face fewer costs as a result.

The UK's fall into recession has led to household budgets being stretched and one of the largest monthly costs faced by a car-owning household is fuel.

Post Office head of general insurance, Richard Pennant-Jones, said: "At a time when many people are stretched financially, switching from four wheels to two is one way to save money.

"Using mopeds or motorcycles over the spring and summer can help reduce day-to-day transport and running costs, including insurance which could be significantly cheaper for motorcycles and mopeds than cars."

Recent official figures have shown a year-on-year increase in new registrations for mopeds.

However, car sales were found to have dropped over the same period.

Tags; Budgeting Advice, Recent Graduate Debt,

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