Car Finance Continues Strong Growth Trends

Jul 6 2010 The motor industry is showing positive signs of growth as consumers continue to purchase new and used cars even though the government’s financial incentives have finished. Q2 showed continuing growth in the market despite the scrappage scheme finishing. This is encouraging news for dealers who had feared a dip in sales without government aid.

The beginning of March saw the release of the ‘10’ registration number plates which historically has led to increases of sales due to people waiting to buy a car until the new registration plate is released. The used car industry has also seen this positive rise which shows the trend hasn’t just been caused by the new registration plates.

The used car market has been growing month on month with consumers looking more confident to purchase new vehicles and also more willing to use car finance to make their purchases. While the current state of the market is looking promising there are still plenty who are being cautious about getting too carried away.

Many consumers are still wary about committing to new car finance packages until the country has shown enough signs that we are out of the recession for good. This is also combined with a new government causing unrest about the near future and the changes that will be made which could affect disposable income.

In the sort term however it does seem as if the motor industry is starting to turn around and consumers are willing to purchase either new or used cars. This is also being aided by lenders starting to lend to more consumers, although the criteria is still a lot tougher than before the recession.

More from Financial and Loan News Motoring News

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