Nearly 6 in 10 car buyers use dealer finance
More motorists are opting for car finance when buying their new motor, according to new figures from Finance & Leasing Association.
Car buyers borrowed over £100m during the second quarter of 2011, an increase of 55% on the £66m taken out in the same period the year before.
With dealer finance accounting for 57% of new private car sales, Paul Harrison, Head of Motor Finance for the FLA, said that the car finance sector is expanding quickly.
“Almost three out of five motorists buying a new car use dealer finance,” he commented.
“While personal contract purchase (PCP) and hire purchase deals remain popular, increasing numbers of people are turning to leasing as an affordable finance option.”
Mr Harrison added that leasing was an increasingly attractive option: “Traditionally, leasing has been more popular with businesses, but many manufacturers and independent finance companies are offering new and improved leasing options to private customers.
“If insurance and servicing are included, it can make financial sense to lease, particularly for motorists who like to change their car every few years.”
He concluded pointing out that FinancingYourCar.org.uk features details on all the different finance options available for buying a car.
See also:
No comments yet
