Motor Trade Insurance
Menu

New Consumer Car Finance Rises In July

September 12, 2019 by Logan Biggs

Those motor traders who are able to offer point of sale consumer car finance to their customers will find it interesting to read that, according to the Finance and Leasing Association (FLA), there has been an increase in both the value of advances made and the number of cars on which point of sale finance was arranged when comparing July 2019 with July 2018. It is good to hear some positive news relating to the motor trade industry.

In July 2019, the value of point of sale advances made to consumers buying cars amounted to £3,074 million. This was a 6% rise when compared with the same month last year. The number of cars funded using point of sale finance totalled 204,160 with this being a rise of 5%.

When comparing the figures for new and used cars that are funded using point of sale consumer finance, it is interesting that the number of new cars funded in this way in July 2019 was 69,696 with this being a 1% increase in comparison to July 2018 and the value of advances was £1,432 million with this being a rise of 4%. The number of used cars funded using point of sale finance was 134,464 with this being a 7% rise when compared with July 2018 and the value of advances was £1,642 million with this being a rise of 8% when compared with July 2018.

On a year to date basis to July 2019, the total number of cars bought by consumers using point of sale finance amounted to 2,416,139 with this being a similar figure to the same period to July 2018. The value of advances amounted to £37,424 million with this being an increase of 2% when compared to the 12 months to July 2018. It is interesting that there was a drop in the number of new cars funded in this way of 4% to 941,455 and the value of advances fell by 1% to £19,347 million whereas the number of used cars funded using point of sale consumer finance amounted to 1,474,684 – a rise of 3% and the value of advances rose by 7% to 18,077 million.

Presumably, motor traders who are able to provide point of sale car finance to consumers have an advantage over motor traders who do not as a lot of people prefer to come along to a car showroom or forecourt to look at a vehicle, decide on the spot to buy it and want to sort out the finance straight-away so that he or she can drive the car away. As a result, more sales are likely to be achieved and presumably some financial benefit is made by the motor trader for point of sale consumer car finance transactions.


No Comments »

No comments yet.

Leave a comment

Mailing List

To get the latest news and offers from MTI, enter your email below.

Subscribe to the Mailing List
FacebookTwitterGoogle PlusLinked In