The Finance & Leasing Association’s
(FLA) figures for November 2009 show new car buyers took out £515
million of motor finance deals, up 79 percent by value of advances
and 82 percent by number of cars compared with November 2008.
In the 12 months to November 2009, 45.8 percent of
private new car sales were funded through dealer finance.
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For the first time since March 2009, consumers
bought more used cars with dealer-arranged finance than in the same
month the previous year, with used car finance figures showing a
rise of 5 percent to £421 million by value, and 4 percent to 44,260
by volume.
FLA chief economist and head of research Geraldine
Kilkelly said: “[These] figures are encouraging, especially as
there was also growth in the used car market. Buying a new car is a
sign of consumer confidence, as replacing an older car is usually a
discretionary, rather than an essential purchase.
“But the rise of 82 percent in November needs to be
treated with some caution because it compares last November with
November 2008, which was the height of the slump in business
volumes. In November 2008 22,402 new cars were bought by consumers
using dealer finance, which was 40 percent down on November
2007.
“We expect December’s figures to also show strong
growth as consumers scramble to beat the VAT increase,” Kilkelly
concluded.
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