March’s motor finance figures from the Finance and Leasing Association show:
Consumers purchased 3% more used cars with dealer finance in March 2009 compared with March 2008 but purchases of new cars on finance were down 27% in the same period.
Consumer leasing of new cars fell 22% in March 2009 compared with March 2008. Personal Contract Purchase (PCP) fell by 2% and HP by 35% in the same time period.
Motorists are taking advantage of the good used car deals available. The proportion of new cars bought by consumers on finance now stands at 53.9% of all consumer new car registrations (436,023 vehicles).
March is an important month for dealers and normally new registration plates are popular. March sales of new cars often account for 20 per cent of a dealer’s annual sales. The figures show that new car finance is yet another part of the motor industry being impacted by the recession.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “The used car market is faring better than the new car market. This is a great time for consumers to buy a used car, as although volumes are up on this time last year, the value of finance provided is down – used cars are cheaper than a year ago. But March’s figures reflect the effect of the recession on the motor finance market. This highlights the need for Government action to ensure the supply of finance meets demand.”