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Consumers on a budget likely seeking cheap car insurance

A slowdown in new auto sales could mean spending concerns have resurfaced

Many consumers have been attracted to assurance programs that have been offered by car makers. These varying promises by big auto names offer to help make car payments or accept returned vehicles should a buyer lose his or her job within a certain amount of time after the purchase.

But even these programs and other incentives can’t seem to spur substantial or long-lasting new car sales growth.

J.D. Power and Associates recently reported that new vehicle sales in May continued to decline compared to one year ago, but at a slower pace.

Gary Dilts, senior vice president of global automotive operations at J.D. Power and Associates, said, “We remain optimistic that the fundamentals will continue to improve and that we will see an uptick during the summer sales season, which will help the industry stabilize further and help build consumer confidence.”

When sales do pick up, consumers laying out big bucks on a new auto purchase are likely keen to find cheap car insurance as one way to balance their budget.

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Posted: May 22, 2009

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