The resilience of the car business is certainly showing itself if the latest finance figures are anything to go by. We have long trumpeted the fact that dealer finance is a very competitive way of funding a car purchase.
Even during a downturn and period of economic uncertainty and given the fact that lending has been reduced by many nervous banks, car dealers backed by their funding partners have continued to offer great value and are now reaping the benefits.
As we have often said, as profits made from the cars themselves are falling dealers have needed to find other ways of propping up the bottom line, and by offering a range of insurance backed products at competitive rates the car buyer gets a good deal on the car and the finance and the dealer gets to retain a happy customer and (shhhh) make a profit.
In the coming months and years it will be more important for car buyers to look at the best finance packages, perhaps even before they’ve thought too much about the car itself when making a change,
As our friends across the water have being doing for years, renting the car rather than actually sinking all your cash into a depreciating asset does make sound economic sense.