The penetration rate of dealer finance for new car sales has
fallen below 50 percent for the first time since May 2008, to 47.6
percent, according to the Finance & Leasing Association
(FLA).
However, director-general Stephen Sklaroff said, this apparently
bad news for point of sale finance does not show the whole picture,
as the figures for new car finance penetration rates have been
altered by the scrappage scheme’s impact.
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Customers buying new cars through the scheme, he said, tend to
use personal savings.
At the same time, a survey carried out by What Car? showed
almost 60 percent of respondents “would consider dealer finance if
buying a car in the next 12 months”, the FLA said.
However, the picture for used car finance is somewhat cloudier,
with sales in the third quarter of 2009 falling by 13 percent by
value and 15 percent by volume of units.
Paul Harrison, head of motor finance at the FLA said: “The
government must intervene to help free up the wholesale funding
markets and ensure motor finance providers can access affordable
funds to pass on to customers.”
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