Motor Trade Insurance

Posts Tagged 'Finance & Leasing Association (FLA).'

  1. Consumer Finance For Used Cars Increases In August

    October 21, 2020 by mti

    Like many businesses, motor traders have been and are going through a difficult trading period due to the pandemic. At the time of writing, unfortunately there seems no end in sight. It is interesting though to hear that consumer used car finance has increased for the month of August.

    According to the Finance and Leasing Association (FLA) the volume of new business relating to consumer used car finance increased by 2% in relation to volume and increased by 10% in relation to value when comparing the month of August 2020 with August 2019. However, it is interesting to note that on a year to date basis to August 2020 the volume of new business dropped by 22% in comparison to the year to date to August 2019. more »

  2. 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.

  3. Point Of Sale Used Car Finance Market Looks Positive

    April 20, 2016 by Logan Biggs

    If you are a car dealer involved in the buying and selling of used cars then you may be interested to read about figures relating to the number of used car finance deals that are arranged at point of sale through dealerships for consumers. The information has been published by the Finance & Leasing Association (FLA).

    Quite a few people that buy cars from dealerships do so using point of sale car finance

    Point of sale car finance is used by quite a lot of people when buying cars from dealerships.

    According to the FLA, February 2016 saw 109,305 used cars bought by consumers through dealerships using point of sale finance with this being an 18% increase when compared with February 2015. Some £1,163 million was advanced in February 2016 through this channel with this being a 23% rise in comparison to February 2015.

    Interestingly, when looking at the same sort of data for new cars, there were 51,207 cars in February 2016 that were purchased through dealerships by consumers using point of sale car finance. This was an increase of 22% in comparison to February 2015. The amount advanced totalled £806 million with this being an increase of 27% when compared with February last year.

    The number of used cars bought by businesses using this sort of finance in February 2016 was 3,328 that was an increase of 20% compared to February 2015. The number of new cars purchased by businesses using point of sale finance in February 2016 was 29,966 with this being a 17% increase when compared with February of last year. However, in the 12 months to February 2016, there were 38,882 used cars financed in this way with this being a drop of 4% when compared to the previous 12 months.

    Overall, perhaps this just goes to show the potential benefit of dealers in the motor trade being able to offer point of sale car finance schemes for the sale of second hand and new vehicles. It is quite likely that by offering such lending schemes that this has probably resulted in many car dealers increasing the number of sales of used and new cars on their forecourts and therefore increasing turnover and profitability.

    Anything that both new and second hand car dealers can do to help increase sales has got to be welcomed by those in the motor trade industry. Some of those customers that have bought from a dealer for the first time are likely to return to the same dealership in future years as and when they wish to change their cars once again.

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