Finance on private new car sales has continued to rise for the
15th month sequentially, accounting for 67.9% of
purchases.
According to figures for June from the Finance
& Leasing Association (FLA), Q2 2012 saw a 38% year-on-year
increase in the value of new car finance with the total number of
cars bought on finance also up by 27%, compared with Q2 2011. Over
£2.2 billion was lent to finance more than 155,000 new cars during
the quarter.
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The penetration of finance is up from
the 67.4% figure for May, which accounted for £1.4bn lent
across new and used cars. However, total car finance was down by
value compared
to Q1 2012 from £4.21bn to £4.04bn.
Paul Harrison, head of motor finance at the
Finance & Leasing Association, said 2012 has been a successful
year thus far with Q2 seeing the total market up by 18% and the new
car finance market also reporting double digit growth for each
month of the year to date.
Harrison explained the slight fall in used car
finance in June, the first time 12 months, was likely due to “the
range of new car incentives available which have narrowed the price
difference between new and used cars on forecourts.”
Despite this lull, used car finance was still
up over the quarter and the 12 months to June.
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By GlobalDataAccording to the FLA, 61% of new car finance
agreements were through PCP, still the most popular form of
finance, with 26% through HP and 8% leasing.
