Car finance on new cars increased 15%
by volume in May compared to the same period last year, with more
than half of all buyers using dealer finance, according to figures
released by the Finance & Leasing Association (FLA). The value
of car finance was £485m (€582m) for May, up 20% on last year.
Paul Harrison, head of motor finance at
the FLA, said: “Dealers are offering value-for-money deals, which
have kept customers coming through the doors. This has meant that
the amount of dealer finance provided to consumers for new cars has
grown by a fifth in the last 12 months compared with the previous
12-month period.”
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Business purchases of new cars on finance
grew by 21% by volume in the same period compared with a year
earlier.
It had been feared that the end of the
government’s scrappage scheme – whereby owners of old cars or small
vans were able to trade them in for brand new models with a £2,000
incentive – would lead to a drop off in the number of customers
wanting to buy new cars, sales of which on finance totalled more
than 36,000 in May.
Figures on used cars are similar to those of
last year, with 52,000 being bought with the help of finance.
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By GlobalData
