Wednesday, October 26, 2011
Car finance applications rise by 18%
New and used car finance loan applications are up by 18 per cent year-on-year, as consumer demand for asset-backed car finance grows, according to data from Creditplus.co.uk, the online car finance provider.
The company said provisional car finance acceptances have increased by nearly 50 per cent year-on-year. The average car loan amount has increased from £7,068 in 2010 to £7,350 in 2011 and the average cash deposit has leapt by 490% per cent to £1,406.
“These figures show that asset-backed car finance continues to be extremely popular and has the edge over other purchasing options, as consumers are able to tailor a finance package to suit their budget,” said Shaun Armstrong, managing director of Creditplus.
“Our typical internet audience comprises 26 per cent prime, 23 per cent subprime and 51 per cent near prime. Over the last 24 month we have seen the near prime market grow due to many people trying to clear debt, and so their credit files have improved. However, some consumers have also struggled in recent months and although they still have very good credit files, they are no longer considered prime.”
Earlier this month the Finance & Leasing Association reported that car dealers had achieved their highest share of the private new car finance market for four years.
In the last 12 months 57.9 per cent of new car buyers used dealer finance. The number of new cars bought on finance was up by 17 per cent in August, and the number of used cars was up by 8 per cent, compared with August last year.
DATED: 26.10.11
FEED: AM
