It won’t just be Lamborghinis that people will be buying, either: Glass’s predicts that pensioners will splash out on everything from superminis to sports cars.
The new rules allow people to withdraw a tax-free lump sum from their pension pot, and it seems likely that many will spend this money on a car.
Rob Donaldson, Car Editor at Glass’s, said: “There is really no precedent for this, so it is difficult to forecast the exact effect that it will have on the new and used car sector.
“The kind of deals that might be made could range from someone buying a Ford Fiesta or Hyundai i10 as their ‘last’ new car through to others splashing £3K on an old MG TF or Mazda MX-5 for some summer fun.”
Older people are less likely to lease cars, so many of these cars are likely to be paid for with cash. It seems car dealers are set for a good summer…