Wednesday, January 20, 2010
November surge in cars bought on finance
VAT increase
In a race to beat the VAT rise, new car buyers took out motor finance deals worth more than £500m in November. Overall, in the 12 months to November, 45.8 per cent of all private new car sales were financed through dealerships. The FLA said there was "further indication of new-found consumer confidence" in that motor finance providers reported the first growth in the number of used or cars bought using dealer finance since March 2009.
In November, consumers bought 4 per cent more used cars this way than in the same month a year earlier. FLA head of research and chief economist Geraldine Kilkelly said: "Today's figures are encouraging, especially as there was also growth in the used car market.
Consumer confidence
"Buying a new car is a sign of consumer confidence, as replacing an older car is usually a discretionary, rather than an essential purchase."
But it warned the rise of 82 per cent in November needed to be treated with caution because it compares last November with a particularly weak November 2008, the height of the slump in business volumes.
In November 2008 22,402 new cars were bought by consumers using dealer finance, which was 40% down on November 2007
"We expect December's new car finance figures also to show strong growth as consumers scramble to beat the VAT increase," said Kilkelly.
DATED: 20.01.10
FEED: MT
