RECORD numbers of car buyers are using in-house dealer PCP finance products to fund their new cars.
Figures from Motorpoint show demand for its point of sale finance packages has increase by over 50 per cent. 1 in 4 Motorpoint sales is funded by in-house finance.
PCP is leading this boom. Traditional HP finance is up only 8 per cent.
Motorpoint says this is because PCP gives buyers advantages which are key in a recession. These include:
• Low deposit
• Low monthly payments
• Security of a Minimum Guaranteed Future Value
Motorpoint’s PCP is called Boomerang, which it funds through Blackhorse Motor Finance. It has proven particularly popular in South Wales. Demand there has increased by 110 per cent.
Scotland and the North West saw PCP uptake increase by 100 per cent.
Paul Winfield, operations director at Motorpoint, was clear about the advantages customers see in PCP. ‘Simple to understand, and even easier to organise, it is the perfect way for the modern customer to finance their next vehicle.
‘Plus, not only does it protect them against the threat of negative equity through its MGFV but it also comes with low deposits and equally low monthly payments.
‘This is music to people’s ears especially during the current credit crunch.’
