Car finance sales increase in early 2010

The number of car purchases made using dealer finance saw a year-on-year increase in January 2010, according to new figures.

Statistics released by the Finance & Leasing Association (FLA) have revealed a 23 per cent increase in consumers using motor finance through dealers compared to January 2009.

This came despite the fact that January 2010 failed to exhibit the same record-breaking levels of car finance growth seen in the closing months of 2009.

Geraldine Kilkelly, head of research and chief economist at the FLA, attributed this shortfall to the impact of extreme snowfall, as well as adding that January was “still a good month”.

She said: “The cold weather may have prevented consumers venturing out to car showrooms in January and anyone thinking of purchasing a new car may have decided to wait for the 10 number plate.”

Earlier this month, the Society of Motor Manufacturers and Traders published new car sales figures for February, revealing that the market remains in good health prior to the imminent end of the scrappage scheme.

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