Motor Trade Insurance

Posts Tagged 'Point of Sale Consumer Car Finance'

  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. more »

  2. Low Percentage Of Car Buyers Arrange Finance Online

    August 18, 2018 by Logan Biggs

    A survey carried out by FICO has revealed some informative data relating to motorists who are buying a car using online finance that motor traders here in the UK may find of interest. The statistics relate to the purchase of both new and used cars.

    When buying a car in the UK, motorists have a number of options. For instance, many will have an existing vehicle that they want to put in part exchange and will use savings to make up the shortfall or will require some form of borrowing such as by way of a personal loan that has been agreed by their bank. Some motorists will sort out their finance through the dealership. Some motorists will arrange to lease the vehicle.

    The research has revealed that a mere 15% of people buying a car in the UK did so by applying for a loan to buy the vehicle online. When you consider how many years the Internet has been around that seems a very low percentage. After all, it is so quick to submit a loan application in this way and there are many lenders offering such finance online.

    On a positive note, apparently 48% of motorists will be applying online for car finance on the next occasion they are looking to purchase a car. Also on the plus side is that 63% of motorists arranged their car finance through a dealer. Car buyers obviously like the idea of being able to sort out their finance through the dealer as 86% said that they would be happy to look at such a package rather than having to go through their bank. One of the reasons for this is no doubt the speed at which such applications can be arranged as the average time taken to sort out such finance here in the UK is under 30 minutes in 63% of cases.

    Another interesting statistic is that only 50% of motorists looked at one lender when seeking motor finance. Surely, some of those people may not have been able to take advantage of the most competitive car finance deal available that he or she may have been able to obtain if they had approached more than one lender. With the availability of the likes of price comparison websites this should be quick and easy to do. Also, some car dealerships have access to a panel of lenders.

  3. 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.

Mailing List

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

Subscribe to the Mailing List
FacebookTwitterGoogle PlusLinked In