The number of cars being bought on dealership finance plans continued to grow in June, new figures have shown.
The Finance & Leasing Association (FLA) has revealed that there was a 15 per cent rise in the number of cars bought on finance in June 2015 compared to the same month a year earlier. In total, in the 12 months up to the end of June 2015, 78 per cent of all new cars in the UK were bought using finance plans, which is a record new high.
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 road risks insurance or 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.
Geraldine Kilkelly, head of research and chief economist at the FLA, commented: “As we forecast at the beginning of the year, point-of-sale consumer car finance volumes have continued to grow in 2015, but at a slower rate than in 2014. The first half of 2015 saw growth of eight per cent in new business volumes compared with 17 per cent growth in the first half of 2014.”