More than 33,000 people bought new cars using car finance in January, according to the latest figures from the Finance & Leasing Association. This was a 42% increase in the value of new car finance provided to consumers compared with the same period last year.
January is traditionally a slow month for sales of cars on dealer finance, and the increase on last January’s 27,000 cars bought on finance reflects the low-rate deals offered by lenders– many at 0% interest.
Motor finance providers are also accepting lower deposits from customers. In the last twelve months, 63.5% of all private new car sales were bought using motor finance.
It was also a good month for dealers selling used car finance to consumers with volumes 14% higher this January than in January 2011. And there was similar news in the business finance market with a rise of 22% in the number of new and used cars financed compared with January last year.
Paul Harrison, head of motor finance at the Finance & Leasing Association, commented: “These figures are striking for January, when customers often reduce expenditure after Christmas. But good offers at dealerships have attracted customers– and people have taken full advantage of the low rates available on motor finance.”