The number of new cars bought with dealer finance increased by 19% in the September plate-change month, according to the latest figures from the Finance & Leasing Association (FLA).
The statistics show that 127,570 new 63-plate cars were bought on dealer finance by consumers, which accounts for 32% of the total new car registrations in September (403,136 units). This total increases to 40% of the plate-change registrations when incorporating new cars sold on finance to businesses.
The penetration rate of FLA members in the 12 months to September 2013 was 74.2%, slightly lower than the rate of 74.5% recorded in August.
September also the strongest growth for consumer used car finance with volumes so far in 2013 at 23%, with hire purchase (HP) still the most popular option in this market.
Paul Harrison, head of Motor Finance at the FLA said: “The strong figures show many customers’ preference for point-of-sale credit, a fact which was borne out in debate at the FLA’s Future of Consumer Credit Regulation conference, yesterday.
“Those attending the conference felt strongly that it was vital to maintain the availability of responsibly-provided credit, and to avoid any adverse impact of the new rules on credit intermediaries.”
In 2012 FLA members provided £80.2 billion of new finance to UK businesses and households. £58.8 billion of this was in the form of consumer credit, 30% of all unsecured lending in the UK. And £23.3 billion of it supported the purchase of new and used cars, including more than 70% of private new car registrations.
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