Motor Trade Insurance
Menu

Posts Tagged 'Finance and Leasing Association (FLA)'

  1. 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. .........read more »


  2. How Did POS Car Finance Do In 2017?

    March 7, 2018 by Logan Biggs

    Motor traders will be aware that an awful lot of people buying new and used cars do so with the assistance of point of sale (POS) car finance. There are a number of people who will buy a car using savings or arrange motor finance from the likes of their bank.

    The Finance and Leasing Association (FLA) recently published some data relating to POS consumer car finance for 2017. We thought that we would share some of the data with you.

    The volume of new business in 2017 in respect of POS consumer car finance was not dis-similar to the previous year and the value of such finance increased by 6%. When you break this down between new and used cars, the volume of new cars bought using POS consumer car finance dropped by 7% in 2017 and value rose by 2%. The volume of used cars bought using point of sale consumer car finance increased by 6% and the value of such finance increased by 12%.

    It would be interesting to ask those consumers who bought a new or used car with the assistance of point of sale car finance whether he or she would still have bought the car even if the motor trader was not able to offer such finance. There are no doubt some motorists who would not bother going along to a motor trader to look at cars if the motor trader did not offer an in-house financing scheme as some people prefer to buy things on a one-stop shopping basis. Presumably, some of those consumers will only go to a motor trader if they are able to apply for point of sale consumer car finance.

    Motor traders would probably find it of interest to look at some statistics in this respect and, if it could be proven that there is a benefit in a motor trader being able to offer such in house car finance by an increase in the sale of new and used cars then would more motor traders apply to be able to offer such finance?


  3. Number Of New Cars Bought With Dealership Finance Drops In October

    December 18, 2017 by Logan Biggs

    It probably will not be a surprise to motor traders who are involved in the selling of new cars to read that the number of new cars bought by way of dealership finance in October 2017 fell by 7% to 71,002 vehicles when compared with the same month in 2016. We say, not a surprise, because the number of new cars being sold in the UK has been falling in recent months. This financial information has been published by the Finance and Leasing Association in the last few days and relates to information provided by its members.

    Although the number of new cars built has fallen,  it is interesting that the value of advances for such vehicles arranged by dealerships actually rose by 2% to £1.373 million.

    Over a three month period to the end of October 2017 the number of new cars that were bought with the assistance of finance arranged via a dealership totalled 261,042 with this being a drop of 9% in comparison to the same period last year. The value of money lent was £5,063 million – a rise of 1%. In the 12 months to the end of October 2017 the number of new cars bought with the help of dealership finance came to 979,975 with this equating to a drop of 6%. The value of money lent was 18,382 million – a rise of 3%.

    Looking at used cars, there were 116,918 second hand cars bought with the assistance of dealership finance in October 2017. This was an increase of 9%. The amount advanced to help buy these vehicles totalled £1,353 million – an increase of 15%. In the three months to 31 October 2017 there were 339,717 used cars sold with dealership finance being used totaling £3,909 million with this equating to a rise of 10%. Over a twelve month period to the 31st October 2017, the number of used cars sold amounted to 1,313, 327 – a rise of 5% in comparison to the same period last year. The value of money lent through dealerships for that period was £14, 836 million – a rise of 10% in comparison to 12 months earlier.

    Motor traders here in the UK will be hoping for an upturn in fortunes as we move towards the end of 2017. Let us hope that this happens and that 2018 is a successful year.


  4. February Sees Fall In Consumer Car Finance

    April 7, 2017 by Logan Biggs

    Motor traders may find it of interest to hear that consumer car finance arranged at point of sale when someone buys a car actually dropped in February 2017. When compared with the same month last year there was a fall of 2% in the number of cars on which such finance was arranged.

    Motor traders may find being able to offer point of sale motor finance of benefit

    There are quite a lot of motor traders who offer point of sale consumer car finance.

    There are many motor traders who offer such finance and no doubt find it beneficial in helping increase the sale of both new and used cars as many car buyers no doubt like the idea of a “one stop shop”.

    According to the Finance and Leasing Association (FLA), point of sale consumer finance for the number of new cars dropped by 3% when comparing February 2017 with the same month in 2016. In February 2017, members of the FLA arranged such finance on 49,408 new cars with the amount of the advances totaling £807 million.

    There were 108,374 used cars sold that had such finance arranged in February 2017 with a value of £1,197 million. This was a fall of 1% when compared with February 2016.

    However, when comparing the number of new cars that were sold with the support of point of sale consumer finance for the 12 months to February 2017 with the same period in 2016 there was an increase of 4% to 1,045,041. There was an increase of 7% in the number of used cars that were sold with the help of such finance with a total of 1,262,627 used cars in the 12 months to February 2017 when compared to the year ending February 2016.

    Interest rates on many forms of borrowing remain low so perhaps February was just a “one off”. It will be interesting to see what happened in March 2017 when the figures become available and for the remainder of the year. We will keep our motor trader visitors updated as the year progresses so feel free to come back and view our website.


  5. Impressive Figures For Point Of Sale Finance For Motor Cars

    January 18, 2017 by Logan Biggs

    There are no doubt a lot of motor traders who provide car finance for customers at point of sale whether that is to assist with the purchase of a new or used vehicle. Such finance probably helps those of you in the motor trade industry who are selling cars achieve more sales than if the customer was just left with having to source their own finance.

    If motor traders offered point of sale finance for customers to buy cars it may result in them achieving more sales.

    Motor traders may find it of benefit if they were able to offer point of sale car finance.

    Well the Finance and Leasing Association (FLA) has recently published the figures for the number of consumer finance arrangements put in place for both new and second hand cars for the month of November 2016 and they make for impressive reading. Obviously, this has to be good for the motor trade as a whole as the more vehicles that are bought and sold should benefit many sectors of the motor trade. For instance, new and second hand cars need new parts, replacement tyres, regular servicing and those over three years of age will also require an MOT.

    In November 2016, the monetary value of new private cars purchased by customers using point of sale finance from members of the FLA through dealerships amounted to £1,354 million with this being an increase of 13% when compared to November 2015. The number of new cars financed in this way totalled 75,231 with this being an increase of 7% when compared to the previous November. There were finance deals totaling £1,069 million for second hand private cars purchased through dealerships in November 2016 using point of sale finance with this being a rise of 8% in comparison to November 2015. This involved 95,158 cars that was an increase of 5% when compared to November of the previous year.

    In the 12 months to November 2016, the amount of point of sale finance for private new cars as referred to above totalled £18,079 million with this being an increase of 13% when compared to the previous 12 months. This involved the sale of 1,051,012 new cars with this being an 8% increase on the previous 12 months. Advances for used cars in the 12 months to November 2016 came to £13,503 million with this being a 12% rise in comparison to the previous 12 months. Some 1,251,985 used cars were sold with this being a rise of 10% in comparison to the 12 months to November 2015.

    We trust that the above has been of interest to those of you working in the motor trade especially those of you who are motor traders. Periodically, we will continue to provide such data in the future to our readers.


Mailing List

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

Subscribe to the Mailing List
FacebookTwitterGoogle PlusLinked In