3:05 am, November 17, 2011
THE new car finance market was up 11 per cent in September, the latest figures from the FLA reveal.
Compared to the same month lat year, September 2011 was up 11 per cent by value with more than than £1.1 bn being made available through motor dealerships for car purchases.
The FLA’s figures also show the used car market grew, providing £600m for the purchase of more than 66,000 used cars from dealerships across the country.
In total, around 150,000 people used dealer motor finance in September to buy a new or used car.
Over the last 12 months, sixty per cent of people buying a new car used motor finance provided through dealers – the largest market share for some years.
Car leasing was up by 68 per cent in quarter three 2011 compared with the previous year, hire-purchase by 11 per cent, and PCPs by nine per cent.
The FLA has explained to the Government that any further changes in consumer credit regulation need to be considered very carefully, to avoid a disproportionate adverse impact on the significant amount of credit provided through intermediaries, including motor dealers.
Paul Harrison, head of motor finance at the Finance & Leasing Association, said: ‘September is a hugely important month for the motor industry as it sees the release of the new number plates. Our figures make encouraging reading for dealers and finance providers in what are still tough trading conditions.
‘Dealer finance has bucked the downwards trend of some other lending markets, in part because of the wide range of products available to consumers. In considering further changes to credit regulation, the Government must be careful to avoid inadvertent damage to the competitiveness of one of our most important lending sectors – one that has allowed more than 1.2 million people to buy a car in the past 12 months.’
