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Number Of Used Cars Bought With Point Of Sale Finance Increases

April 14, 2019 by Logan Biggs

Motor traders will be interested to read that, according to data produced by the Finance and Leasing Association, the number of used cars here in the UK purchased by consumers with the assistance of finance arranged at the dealership has gone up in the 12 months to February 2019.

In the 12 months to February 2019, the number of used cars bought using point of sale finance rose to 1,464,817. This is a rise of 5% which we are sure you will agree is a significant increase.  The value of these advances came to £17,762 million. This was a rise of 11% – a sizeable rise.

In the month of February 2019, the number of used cars bought by consumers using in-house finance rose to 123,934. This equates to a rise of 2% when compared with the same month last year. The value of these advances came to £1,509 million. This was a rise of 7% – again a significant increase.

In the three months to February 2019, the number of used cars bought with the help of point of sale car finance amounted to 343,550. This was a rise of 2% in comparison to the same period in 2018. The value of these advances totalled £4,196 million – a rise of 6%.

It is interesting that the number of new cars bought by consumers using point of sale car finance in the 12 months to February 2019 dropped by 2% to 962,476. However the value of such advances actually rose by 3% to £19,529 million. The number of new cars bought using in-house car finance in the month of February 2019 rose by 1% to 48,642. The value of such advances rose by 4% to £946 million when compared with February 2018. The number of new cars bought using point of sale finance in the three months to February 2019 was little changed at 166,751 when compared with the same period last year. The value of such advances rose by 3% to £3,381 million.

It would be interesting to know what benefit there is in a motor dealer offering point of sale car finance for either used or new cars or indeed both. Are there some motorists who only buy a used or new car from a motor trader who offers point of sale car finance? If this is the case then there are no doubt a number of motor traders who are loosing business to competitors.  


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