A total of 56% of new car sales used motor
finance in the year to May 2011– the highest market share since
March 2009 – the Finance & Leasing Association reports.
In May, the new and used car finance markets
for consumers both grew, with the number of new cars sold on
finance up by 3% compared to May 2010, and the number of used cars
sold on finance up by 6%.
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Year-on-year change in finance sales volume
has fluctuated in the first five months of the year, confirming
industry expectations of a flat overall market, governed by
consumer confidence and characterised with seasonal volatility.
Leasing and personal contract purchase
agreements for new cars also grew – by 14% in the past twelve
months compared to the previous twelve. Hire purchase agreements
fell by 20% over the same period.
Business car purchases on finance remained in
the doldrums, with new cars financed down 7% for the year-to date
to May 2011, compared to the previous year, and used cars down 16%
by the same measure.
FLA Head of Motor Finance Paul Harrison said:
“While economic uncertainty affects consumers when making big
purchasing decisions, motor lenders have responded by offering
value-for-money packages. More than half of all consumers choose to
use finance from the dealer when they buy a new or used car.
As competition in the credit markets increases we
expect consumers to continue to benefit from offers matched to
their individual needs and budgets.”
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