F&I Management & Training

Dealer sales of new and used car finance increased year on year in September, according to the latest figures from the Finance & Leasing Association.

The number of new cars sold on finance to retail customers increased by 5 per cent and the number of used cars by 6 per cent, despite a fall of almost 19 per cent in the total number of private new car sales in September.

The FLA said the percentage of new cars sold to consumers on dealer finance over the last 12 months rose from 47.5 per cent in August to 49.6 per cent in September.

Dealer finance for business cars dropped in the month by 17 per cent for new cars and by 4 per cent for used cars.

“The rise in the use of motor finance is great news for dealers, coming as it does in such an uncertain and volatile economic climate,” said Paul Harrison, the FLA’s head of motor finance.

“Over the year we have seen ups and downs in the number of people using dealer finance for both new and used cars, so it is encouraging to see a strong performance in the important month of September.

“But we still have some concern about the business cars sector, where new loans have fallen. Businesses are still cautious about investment and this is likely to continue while the economic effects of last month’s Comprehensive Spending Review remain unclear.”

DATED: 15.11.10

FEED: MT