The value of the new car finance market at dealerships grew 17 per cent in March 2016 compared to FLA figures recorded in the previous month.
The same market grew 10 per cent by volume compared to February 2016, according to recent figures released by the Finance & Leasing Association (FLA). There was more positive news for the car dealership trade too, with new business in the first quarter of the year up 19 per cent in value and 13 per cent in volume.
With new business continuing to grow year-on-year, UK car dealers may be thinking of adding more stock to their showrooms. If so, it's important that they remember regularly to update their motor trade insurance and road risks insurance to ensure that their changing quotas are always completely covered.
The FLA figures also revealed that the percentage of new car sales through private sellers rose to 82.7 per cent in the year ending in March 2016, up from 81.9 per cent in the twelve months until February. Figures for point-of-sale (POS) finance for used cars in March also grew by eight per cent and six per cent by value and volume respectively.
Geraldine Kilkelly, the head of research and chief economist at the FLA, said of the recent figures: “The POS consumer new and used car finance markets continued to grow in March, although at slower rates than reported over the past few months.
“The performance of these markets in the first quarter of 2016 is slightly ahead of the single-digit growth expectations for 2016 as a whole.”