USED car finance sales were up by more than a fifth in August, says the Finance & Leasing Association.
Latest statistics from the FLA reveal that sales of used cars using dealer finance rose by 21 per cent in August when compared to the same month in 2009.
However, sales of new cars to consumers and businesses using motor finance were down by 12 per cent and 26 per cent respectively.
But next month’s figures will give a better picture of the new car market, says the FLA. August is traditionally a quiet month as motorists wait for the release of the new number plate in September.
Paul Harrison, head of motor finance, said: ‘Following the withdrawal of a range of incentives to ‘buy new’, consumers have returned to the used car market where lower prices are attractive and mean that buyers need to borrow less.
‘However, despite strong growth this month it must be remembered that August 2009 was a weak month when the country was still in recession.
‘While we expect sales of new cars, particularly prestige cars, to recover slightly towards the end of the year as consumers seek to beat the VAT increase, there is also the, as yet unknown, effect on consumer confidence of this week’s Comprehensive Spending Review.’
by JAMES BATCHELOR