The number of new cars bought on finance in the UK rose by 13 per cent in July compared to the same month last year, new figures have revealed.
According to data from the Finance & Leasing Association (FLA), the proportion of new cars that were purchased on finance plans stood at 78.7 per cent in the 12 months to July 2015. This is up from 78.1 per cent in the 12 months to June, showing the continuing rise in popularity for car finance deals.
Affordable finance plans are evidently proving popular with customers, helping them to pay for their cars in instalments rather than costly one-off sums. Car dealerships and garages, like most businesses, will also want to avoid large one-off payments, which is why business insurance – specifically motor trade insurance – is so important. This will protect the business and its assets so if something goes wrong, such as a fire or theft, the insurance company will cover the costs, helping the trader avoid the big one-off fees.
The point-of-sale consumer used car finance market also grew in July, the FLA found, with new business volumes up by nine per cent compared with July 2014.
Geraldine Kilkelly, head of research and chief economist at the FLA, commented: "The point-of-sale consumer car finance market has continued to grow in line with expectations. With the latest new car registrations for August suggesting robust growth in demand, we expect new car finance volumes to continue to grow over the coming months."