Figures from the FLA show moderate growth in new vehicle financing
Figures were released yesterday by the Finance & Leasing Association (FLA) showing a 6% increase in consumer finance new business in November 2013, compared with the same month in 2012.
It was good news for the point-of-sale car finance market which recorded new business growth of 19%. Commenting, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA said:
“These latest figures show how point-of-sale credit continues to be a popular option for consumers. It is helping to support a sustained economic recovery in the UK. We have seen steady growth in overall consumer finance new business in recent months, amounting to 5% over the 12 months to November.”
With the growth in new business towards the end of last year, it looks as though some consumers are still choosing to and are still able to obtain some form of finance to purchase a fleet of new cars and vans. The tables below were published on the FLA's website (you can view more by clicking on the FLA link above) and show the moderate growth in motor finance last year.
Vehicle finance helps to spread the cost of a new or used car/van. Instead of paying the full amount upfront, customers pay monthly. Most van dealers offer a range of finance products to suit individual preferences and circumstances, such as Hire Purchase, Conditional Sale, Personal Contract Purchase, and Lease Purchase. For more details on the types of finance options available out there, you can take a look at a previous blog post on the Low Cost Vans website titled, “Finance options for buying a new van” by clicking here. Also, if you need assistance or have any questions about contract hire or leasing your new van, give Low Cost Vans a call, we are committed to offering a premium quality service for the duration of your agreement, not just when purchasing. Our knowledgeable customer sales advisers are just a phone call or email away.
It was good news for the point-of-sale car finance market which recorded new business growth of 19%. Commenting, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA said:
“These latest figures show how point-of-sale credit continues to be a popular option for consumers. It is helping to support a sustained economic recovery in the UK. We have seen steady growth in overall consumer finance new business in recent months, amounting to 5% over the 12 months to November.”
With the growth in new business towards the end of last year, it looks as though some consumers are still choosing to and are still able to obtain some form of finance to purchase a fleet of new cars and vans. The tables below were published on the FLA's website (you can view more by clicking on the FLA link above) and show the moderate growth in motor finance last year.
| Table 1: Cars bought on finance by consumers through dealerships | ||||||
Nov-13 | % change on prev. year | 3 months to Nov 2013 | % change on prev. year | 12 months to Nov 2013 | % change on prev. year | |
| New cars | ||||||
| Value of advances (£m) | 878 | +16 | 3,787 | +21 | 11,842 | +28 |
| Number of cars | 55,941 | +7 | 245,784 | +12 | 788,243 | +20 |
| Used cars | ||||||
| Value of advances (£m) | 720 | +22 | 2,327 | +23 | 8,599 | +19 |
| Number of cars | 72,639 | +18 | 236,694 | +19 | 900,329 | +14 |
Table 2: Cars bought on finance by businesses | ||||||
Nov-13 | % change on prev. year | 3 months to Nov 2013 | % change on prev. year | 12 months to Nov 2013 | % change on prev. year | |
| New cars | ||||||
| Number of cars | 33,052 | +10 | 104,474 | +3 | 398,503 | 0 |
| Used cars | ||||||
| Number of cars | 2,646 | -48 | 11,341 | -33 | 58,247 | -11 |
Vehicle finance helps to spread the cost of a new or used car/van. Instead of paying the full amount upfront, customers pay monthly. Most van dealers offer a range of finance products to suit individual preferences and circumstances, such as Hire Purchase, Conditional Sale, Personal Contract Purchase, and Lease Purchase. For more details on the types of finance options available out there, you can take a look at a previous blog post on the Low Cost Vans website titled, “Finance options for buying a new van” by clicking here. Also, if you need assistance or have any questions about contract hire or leasing your new van, give Low Cost Vans a call, we are committed to offering a premium quality service for the duration of your agreement, not just when purchasing. Our knowledgeable customer sales advisers are just a phone call or email away.
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