Thursday, May 17, 2007
New car finance at a standstill
THE number of new cars bought on finance by consumers in March grew by 1%.
But, according to the Finance & Leasing Association, the number bought on finance by the business sector contracted by a similar amount, leaving the overall situation similar to that of March 2006.
The used car sector reported new business volumes down 10% in March, which reflected the rate of decline in the number of used cars bought on finance by consumers.
"The March issue of the 07 registration plate has led to the first pick up in the private new car market since this time last year, said the Association. "The rate of growth in dealer finance for new consumer cars was modest at just 1% and as a result the finance penetration rate for this sector fell further to stand at 45.8%," said head of research, Geraldine Kilkelly.
"April's results will give a better idea of the impact of the new plate overall but clearly there is still work to be done on changing consumer perceptions in an increasingly competitive market place. FLA is taking initiatives to address this, including a dedicated website (financingyoucar.org.uk) which provides an impartial guide to consumers looking to purchase a car."
DATED: 17.05.07
FEED: AW
But, according to the Finance & Leasing Association, the number bought on finance by the business sector contracted by a similar amount, leaving the overall situation similar to that of March 2006.
The used car sector reported new business volumes down 10% in March, which reflected the rate of decline in the number of used cars bought on finance by consumers.
"The March issue of the 07 registration plate has led to the first pick up in the private new car market since this time last year, said the Association. "The rate of growth in dealer finance for new consumer cars was modest at just 1% and as a result the finance penetration rate for this sector fell further to stand at 45.8%," said head of research, Geraldine Kilkelly.
"April's results will give a better idea of the impact of the new plate overall but clearly there is still work to be done on changing consumer perceptions in an increasingly competitive market place. FLA is taking initiatives to address this, including a dedicated website (financingyoucar.org.uk) which provides an impartial guide to consumers looking to purchase a car."
DATED: 17.05.07
FEED: AW
