Prospective new car buyers may be heartened by figures recently released by the Finance and Leasing Association (FLA) that reveal that sales of private new cars on finance grew 6% more this October than they did in the same month last year.
Figures for the last quarter of 2011 also show a healthy rise in UK car finance compared to the same period in 2010: 10% more new vehicles were bought with car finance over the last three months than between October and December 2010.
Car buyers, like everyone else, have been tightening their purse strings (and their waist belts) as fuel and retail prices continue to rise, with the result that motor finance providers have been prompted to create innovative new products to appeal to our new financial circumstances. One such is "personal contract purchasing," which makes new cars considerably more affordable for many. Dealers have also been adopting the FLA's "Specialist Automotive Finance" (SAF) scheme in their showrooms, which provides clear finance information online to prospective consumers, including a "motor finance competency test."
Commenting on the developments, the FLA's Head of Motor Finance, Paul Harrison, said "Despite the tough economic conditions, motor finance sales have remained robust. This reflects the good deals available on the forecourt and high standards of customer service. A total of 25,000 staff and 1,500 dealerships have used the SAF scheme to increase their knowledge of the range of finance products available in showrooms to help guide car buyers to the best option for their personal circumstances."
Author - Louise Hutchinson
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