The number of new cars bought on finance by
consumers through dealerships in February was down 14% compared
with the same month 2010, according to the Finance & Leasing
Association (FLA). Used car sales purchased on finance were flat in
February compared to the same month last year.
Though at first glance the figures may appear
disappointing, they are the product of a traditionally slow month,
prior to a plate change, and follow an exceptionally good January
when dealers were offering compensatory bargains after the increase
in VAT.
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Business investment in new fleet vehicles was
also down, falling 16% in February compared to February 2010. Sales
of used cars to businesses were down even more dramatically, by 43%
compared to February last year.
The three-months-to-February figures continue
to show the trend previously identified – that consumers are buying
fewer new cars, while used car sales are up, in line with the
general austerity of the times.
The year-to-February figures, though, clearly
show that consumer sales of both new and used cars are
significantly higher than they were a year earlier.
FLA head of motor finance Paul Harrison said:
“January was an unexpectedly strong month for car finance sales, as
dealerships offered good deals on interest rates to help buyers
offset the impact of the VAT rise to 20%.
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By GlobalData“February is traditionally a slower month for
dealerships, as people thinking about buying a new car may want to
wait until March for the new plates.”
