News

Surprise leap in finance

Time 9 years ago

MORE than 33,000 people bought new cars using car finance in January, according to the Finance & Leasing Association.

The figure was a 42 per cent increase in the value of new car finance provided to consumers compared with the same period last year.

January is traditionally a slow month for sales of cars on dealer finance, and the increase on last January’s 27,000 cars bought on finance reflects the low-rate deals offered by lenders– many at zero per cent interest.

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Motor finance providers are also accepting lower deposits from customers. In the last twelve months, 63.5 per cent of all private new car sales were bought using motor finance.

It was also a good month for dealers selling used car finance to consumers with volumes 14 per cent higher this January than in January 2011. And there was similar news in the business finance market with a rise of 22 per cent in the number of new and used cars financed compared with January last year.

Paul Harrison, Head of Motor Finance at the Finance & Leasing Association, said: ‘These figures are striking for January, when customers often reduce expenditure after Christmas. But good offers at dealerships have attracted customers– and people have taken full advantage of the low rates available on motor finance.’

James Batchelor's avatar

James – or Batch as he’s known – started at Car Dealer in 2010, first as the work experience boy, eventually becoming editor in 2013. He worked for Auto Express as editor-at-large and was the face of Carbuyer’s YouTube reviews. In 2020, he went freelance and now writes for a number of national titles and contributes regularly to Car Dealer.

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