Media playback is unsupported on your device

PPI payouts help to boost UK new car industry

4 October 2013 Last updated at 12:05 BST

New car sales have reached their highest levels in over five years, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

More than 400,000 new cars were sold in September and Mike Hawes, Chief Executive of the SMMT, claims part of this success is down to PPI payouts.

Mr Hawes told BBC Radio 5 live's Wake Up to Money: "PPI insurance payouts are giving people a nice cheque."

"It's not enough to put on a deposit for a house, but it's certainly enough to put a deposit on a new car."

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.