Dealer finance win
August 20th, 2010 by Richard Aucock
MORE people in 2010 have used car dealer finance than personal loans or their own savings to buy a new car.
Nearly 50 percent of all new cars sold to buyers were bought through forecourt finance.
That equates to 264,377 people using car dealer finance – uptake of which has rocketed 26 percent so far this year.
Paul Harrison, head of motor finance at the FLA said: ‘The first half of 2010 has been very positive for dealer finance.’
Particularly popular have been PCP deals, which accounted for 57 percent of car dealer finance. The flexibility offered by these is proving to be just what car buyers are after.
There may now be a few months’ respite though, said Harrison. However, it will not be a sustained lull. Why? New car price rises!
‘November and December is likely to see a pick up in demand as customers rush to buy new cars before the increase in VAT to 20% affects prices.’