A new survey by Oracle Finance reveals the number of car buyers funding sports and prestige models through finance agreements rose by 11% in 2010,.
The upturn is a “strong indicator” that buyers in the luxury car bracket are keen to take advantage of low interest rates without having to pay for a vehicle outright. Oracle Finance, a specialist prestige finance house, claim it also demonstrates a “clear intent from buyers to secure a good deal before inflationary pressure forces interest rates to rise”.
The Range Rover brand did particularly well, accounting for nearly 18% of vehicles financed by Oracle during the year, with the Range Rover Sport in particular accounting for nearly 10%. Audi was the second most popular marque, accounting for 14% of the finance written with Oracle, followed by BMW (12%), Porsche (9%) and Aston Martin (9%), in a survey analysing buying trends of car owners in the £25,000-plus bracket.
“Although the challenging economic climate has generally slowed spending on luxuries, we have continued to see a high demand for prestige vehicles,” said Peter Brook, Oracle’s managing director, who believes that the increase in activity at the top end of the prestige market is also helped by the reduced rate at which luxury vehicles depreciate in comparison to lower value and lower specification models.