Zuto has reported record levels of applications for the weeks following Christmas 2022, with the trend continuing through January 2023.

The company said it saw a week-on-week (WoW) increase of 44% in applications between December 26, 2022  and January 2, 2023.

Google searches relating to car finance are also up 37% year-on-year (YoY) for the period January 1 and January 11, 2022.

Lucy Sherliker, head of customer at Zuto, said: “The week between Christmas and New Year is a popular time for people to look into purchasing a used car, but this season has been exceptional.

“The industry typically experiences a decline in interest through December as people focus their energy and spending on Christmas.

"Then, with time off work and in preparation for the year ahead, people start looking for the car they need and for ways to make it affordable.

“There could be several factors at play in making this period so exceptional. With the cost-of-living crisis and high second-hand car prices, people are less likely to be able to make a bulk, upfront payment. But people still need a vehicle.

“For many of our customers, they rely on their car for work and transporting family members – it is not a luxury. The right finance package means they can pay for a car in more manageable monthly amounts. It’s always paramount for us to find a deal that works within their budget.”

Last year, Zuto announced it increased its market share by 7%, outperforming the used car market which grew by 6% in the same period.

Data collected from Zuto customers who have applied for finance in January 2023 shows a rise in people buying a car for work; 25% cited this as their reason for purchase. Needing to replace a previous car was the top answer.

The latest figures from Auto Trader’s Retail Price Index in December show that used car prices have increased 3.4% YoY, with the average price of a used vehicle advertised on Auto Trader currently at £18,030.

Percentage changes in volumes of applications for used car finance through Zuto

Period

19/12/2022

26/12/2022

02/01/2023

09/01/2023

Application change week-on-week

-20%

38%

44%

5%

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