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Car Finance Facts – Record UK growth comes to an end

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The record growth in the UK new car market came to an end last month as new car registrations in October fell by 1.1%. The total of 177,664 cars sold was lower than last October’s total of 179,714, ending the 43 months of consecutive growth in the UK car industry. Total figures for the year are still up on 2014, with 2,274,550 cars registered by end of October 2015, up 6.4% from last year’s end of October total of 2,137,910 cars.

Any sign that Volkswagen sales would be affected by the emissions scandal have not yet appeared as the Volkswagen Golf was the third best selling car in October. Concerns about future resale value and changes to road tax have not yet had an affect it seems, with the Golf and the Volkswagen Polo (7th most sold) still proving to be popular amongst customers. It will be interesting to see if the ongoing scandal has any affect on sales figures towards the end of the year.

So what caused the decline? It’s difficult to say, with the figures still being much higher than they were from 2008-2013. Mike Hawes, the Chief Executive of the Society of Motor Manufacturers and Traders said, “The UK car market has gone through a period of unprecedented growth and, so far, 2015 has been a bumper year with the strongest performance since the recession. As expected, demand has now begun to level off but the sector is in a strong position, as low interest rates, consumer confidence and exciting new products combine to attract new car buyers.”

Creditplus News

The last three months have been strong here at Creditplus, with more and more customers choosing to compare their car finance options without affecting their credit file. Our commitment to ethical lending clearly works and our “Find, Fund, Deliver” service is proving to be a popular choice for customers seeking a full service package. Check out the full table below for the car finance facts from August to October.

BMW 3 Series

The number one most popular car here at Creditplus was the BMW 3 Series. Our most popular car, the 3 series is a fantastic executive saloon, and perfect for those seeking a high quality nearly new car. In second place was the Nissan Qashqai, with the Ford Focus in third.

6.1%

New car registrations from August to October were up by 6.1% from the same time period last year. 719,241 new cars were sold or financed, with the new 65 number plate giving sales a record boost. 43 months of consecutive growth had been reached before October's slight decline.

37

On average, our customers were 37 years old. Creditplus provide finance for anyone from first drivers to retirees, so it's interesting to see the average age is almost bang slap in the middle of those we can help.

£11,425.87

We loaned an average of £11,425.87 to our customers across the last three months. We can finance from £3,000 to £150,000, but most of the cars our customers choose are between £7,000 to £15,000.

Black

Black is always the most popular colour choice month on month. Maybe it's all the BMW's our customers buy, but it seems that they like it dark. It's an interesting counter to the rest of the UK market, as White is the most popular colour nationwide.

£1,452.22

Average deposit last month was £1,452.22. In most cases our minimum deposit is £300. Larger amounts can reduce the overall cost of car finance and reduce monthly payments. We can do no deposit car finance too, speak to your customer advisor for details.

53

The average loan term was 53 months. The long duration shows confidence our customers have in the UK economy and job sector.

Ford Fiesta

The Ford Fiesta remains the UK's most popular car, with 36,137 sold across the UKThe Vauxhall Corsa was second with 22,885 sold, with the Ford Focus in third with 21,844.

2,274,550

Registrations for 2015-to-date reached 2,274,550 by end of October. Up 6.4% from this time last year.

 

*Source: The Society of Motor Manufacturers and Traders - Motor Industry Facts 2015

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