In the middle of a financial crisis, how can new car sales still be going up?
The Society of Motor Manufacturers and Traders (SMMT) says new registrations were up by 14.8% in April on the same period last year – the best figure since 2008.
But it’s not the big fleet buyers who are driving the market. Private sector registrations grew by 32.3% in April and are 15.2% up on the year as a whole and analysts are suggesting that successful PPI compensation claims are providing the cash.
The average PPI payout is around £3,000 which isn’t enough money to extend your house or pay off your mortgage, but it’s a handy sized windfall for the deposit on a new car.
A new car is a significant purchase, but a PPI windfall coming at the same time as heavy discounts, cheap finance and lower running costs seems to be tempting many drivers to swap their older, thirstier and less reliable cars for a new model.
In the midst of financial gloom, a shiny new motor on the driveway is a great way of lifting dampened spirits.
The banks have already paid out £9.3 billion in what has become the biggest financial scandal in British history, but there’s still more to come. They have already earmarked over £16 billion to pay compensation to customers who were mis-sold PPI and claims are still flooding in by the thousand.
There are also hundreds of thousands of cases lodged with the Financial Ombudsman Service (FOS) after banks rejected the initial claim, but consumers have challenged their decisions. FOS have reported a massive increase in rejections and have said that over 80% of the appeals against some of the biggest high street banks were upheld in the second half of last year.
Can we help you?
Experts have claimed that many people who have been mis-sold payment protection insurance are either not aware they have it or are unsure whether it was of any use to them. If you want to reclaim PPI you believe you may have been mis-sold on any loans, mortgages or credit cards then you can start the claim process today with Gladstone Brookes.
Starting a claim is simple
- Make contact with us either by calling our claim line on 08000 461 825 or filling in the PPI claim form on this website
- We send your claim pack – just sign and return
- We process your claim