Car loans for new vehicles 'on the rise'

By Joel Stanier

October saw a 6% increase in the number of brand new cars bought on finance, according to new figures from the Finance & Leasing Association (FLA).

This also represented a 10% increase over the last three months, and a 16% increase on October last year.

In all, there were 42,544 new cars purchased on finance, amounting to £572 million in loans.

The FLA said the increase in car loans was largely due to improvements in customer service and the range of options on offer. Taking car buyers' squeezed budgets into consideration, motor finance providers have been focusing on affordable finance products such as personal contract purchasing (PCP). And the FLA's Specialist Automotive Finance (SAF) scheme has improved the quality of financial information in UK car showrooms.

Paul Harrison, Head of Motor Finance at the Finance & Leasing Association, commented: "Despite the tough economic conditions, motor finance sales have remained robust. This reflects the good deals available on the forecourt and high standards of customer service.

"25,000 staff and 1,500 dealerships have used the SAF scheme to increase their knowledge of the range of finance products available in showrooms to help guide car buyers to the best option for their personal circumstances."

Image © iStockPhotos

Tags: FLA, car loans, loans, loan, car finance, car, cars

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