Figures from the Finance and Leasing Association reveal that 70 per cent of all new car sales are now driven through consumer car finance – keeping the industry alive.
The number of cars sold on consumer finance are up 40 per cent over last year, according to the figures – and the number of used cars sold on finance increased by 15 per cent too.
70.2 per cent of all consumers now buy cars through finance, compared to 64.2 per cent in January this year. Business use of motor finance increased too, with the number of new cars sold up by 18 per cent – and used cars up 204 per cent.
‘2012 has been a spectacular year for car finance,’ commented Paul Harrison, head of motor finance at the FLA. ‘Over 70 per cent of consumers now turn to their local dealership and motor finance providers to fund their new car purchase.
‘We expect this figure to approach the 75 per cent mark in 2013. The used car market is also performing well as the range of attractive finance packages are extended to those buyers.’