Car finance deals increase as buyers aim to beat VAT rise
21 January 2010
New car sales using dealer finance were 82% higher in November than they were a year earlier, according to new statistics from the Finance & Leasing Association (FLA).
The FLA attributed this increase to a rush from consumers trying to beat the VAT rise. In total, over half a billion pounds` worth of car finance was lent to new car buyers over the course of the month.
The FLA added that second-hand car sales bought using car finance from the dealership had also increased, by 4% (compared with the same time last year), suggesting that consumer confidence may have risen.
A car finance expert at Think Money commented: "It remains to be seen whether car finance deals will continue to increase. On the one hand, the VAT rise may discourage people from buying new cars, but on the other hand, one of the biggest problems recently seems to have been availability of car finance, which now appears to be improving."
Tags: car, car finance, deals, VAT, VAT increase, VAT increase car deals, car finance deals, new car VAT, new car