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Consumer New Car Finance At Point Of Sale Figures Disappointing

November 15, 2018 by Logan Biggs

Some motor traders find it beneficial to offer car finance to people buying motor vehicles from them whether they are selling used and/or new cars. In doing so, it can no doubt sometimes lead to increased sales which is something that many in the motor trade will welcome especially as the number of new cars being sold recently has been falling.

The Finance and Leasing Association (FLA) has recently produced some interesting figures relating to the volume and value of new cars bought by consumers with point of sale finance. Unfortunately, the figures make for disappointing reading.

In September 2018, new business volumes of such finance dropped by 16% when compared with the same month in 2017. The value of such business reduced by 14% in September 2018 when compared with the same month last year. In the third quarter of 2018, the value of new business consumer car finance at point of sale fell by 4% when compared with the same period in 2017 and volume levels dropped by 6%.

Interestingly, point of sale finance for used cars rose by 9% for value and increased by 3% for volume in September 2018 in comparison to September 2017.

Also, on a positive note, for the nine months to September 2018, overall the consumer car finance market at point of sale saw new business volumes go up by 3%.

There are no doubt many people who arrange car finance elsewhere such as through their bank or building society or there are many specialist online lenders providing motor finance. No doubt a lot of car buyers shop around to find suitable car finance rather than just get a quote from one lender. Having said that, there are no doubt a number of people who prefer to go along and identify a car they wish to buy and then arrange the finance to buy the vehicle through the motor trader as they cannot be bothered shopping around.


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